First Down Funding is a company that offers Merchant Cash Advance (MCA) loans and other types of business loans to small and medium-sized companies in the U.S. First Down Funding provides small business funding services that are tailored to your business needs by offering personalized customer service. An easy application process and fast approvals make First Down Funding an excellent option for small business owners looking for effective business financing solutions that can support their business growth.
First Down Funding can offer flexible terms and fast funding approvals on your business loan and funding solutions even to those with a bad credit score or no collateral, unlike other traditional funding providers. Their fees are straightforward; they charge a percentage of the total amount of funding to your business.
When you’re running a small business, you’re always keeping a careful balancing act between expenses and your cash flow. You need to meet your weekly and monthly operating expenses, including payroll, rent or mortgage payments, loan repayments, and utility bills. If your accounts receivables slow down their payments, you may find yourself struggling to pay these essential debts.
This can leave you scrambling for cash. A merchant cash advance loan might be what you need to cover your expenses. A merchant cash advance is a type of loan where you receive a lump sum and agree to pay a percentage of your daily credit card sales to the lender until the loan amount and interest are repaid. The percentage is taken directly from the company that processes your credit card sales.
How Does a Merchant Cash Advance Work?
A merchant cash advance can provide funds for various reasons, and you agree to repay the money back through your credit card sales. As a small business owner, you’ll receive the agreed-upon loan amount in your business bank account. In exchange, you agree to pay the lender a certain percentage of your daily credit card sales to the creditor until the full amount plus the interest is repaid.
This is a fixed-price loan, which means that you agree to the total amount of interest that you’ll repay before receiving the money. It also means that the amount of interest you pay is not based on how long or how quickly you repay the debt. Each day, based on the volume of your sales, you repay the cash advance. The lender receives the same percentage of sales each day, even as your sales fluctuate up or down. In many cases, as part of the merchant cash advance agreement, you promise to operate your business in good faith and avoid sabotaging sales.
While you always end up paying a specific percentage of daily sales, there are three primary ways that these funds are sent to the lender. Here are the options:
- Split funding: You might also hear this called split withholding. With this method, the credit card processing company splits the funds and sends the agreed-upon percentage directly to the lender. The percentage usually ranges between 10 and 22 percent. This is the most common form of repayment.
- Trust bank account holding: This can also be referred to as a lockbox arrangement. The credit card processing company sends all the funds to the lender, who then send your share to your business bank account through wire transfer, ACH payment, or EFT. This causes a one-day delay for your funds. This is the least common repayment method.
- ACH withholding: Each day, your lender receives a statement of your earnings and deducts the funds through an ACH payment from your business bank accounts.
If your company does a steady business in credit card sales and needs cash immediately, the merchant cash advance may be a good option.
How to Get a Merchant Cash Advance Loan With First Down Funding
At First Down Funding, you can get help to get the cash you need to keep your business running and growing. It is their goal to make securing funds as easy as possible. Here’s a look at the steps to getting a merchant cash advance loan with First Down Funding:
- Fill out the online application: In around 10 minutes, you can fill out our online application that requires the typical information about your company and finances.
- Choose your best option: Within 24 hours, you should receive a list of options to review, such as funding amount and repayment options. You need to review them and decide which works best for your needs.
- Receive your funds: After selecting an option, you should receive your funds. Sometimes, the money deposits in as little as 48 hours.
There are some documents you will need to provide before getting your loan approved. These include:
- A copy of your government-issued identification, such as a driver’s license or passport.
- Statements for the past three months from the business’s bank account.
- The last three statements from your credit card processing company.
- A voided check from the business’s checking account.
First Down Funding makes it as simple as possible to get a merchant cash advance loan. When you need money for your business now, their goal is to help you identify your business’s best funding solution.
Reasons to Choose First Down Funding for a Merchant Cash Advance Loan
First Down Funding’s goal is to be the lender you turn to when you need cash fast for any reason. They strive to provide you with outstanding customer service. Your assigned personal funding manager will collaborate with you to find the best loan product for your needs. Here are a few reasons to choose First Down Funding for your merchant cash advance loan:
- Easy online application: In most cases, you can fill out an application online in around 10 minutes or a pre-approval form in less than 60 seconds.
- Quick approval: They work hard to try to return a decision to you on the same day.
- Funds arrive quickly: Once you’re approved, the funds move to your bank within a day. Sometimes, you can get funds in as little as 48 hours after submitting your application.
- Options: If a merchant cash advance loan is not the best option for you, a personal funding manager will work with you to review other loan options.
First Down Funding wants to partner with you to help you with your cash flow issues. They offer many options for funding and hope you find one that fulfills your needs.
Additional Options from First Down Funding
- Small Business Funding: It covers various funding options to get you the cash you need at a critical time.
- ACH Business Loans: Also referred to as Bank Only ACH Program, this loan is a cash advance loan. The amount of money you can borrow and the repayment schedule is based on your weekly and daily sales.
- Working Capital Loan: A working capital loan is designed to help you meet your operational expenses, including rent, payroll, mortgage, or utility payments.
- Bridge Funding: Sometimes referred to as swing or gap funding, bridge funding can offer you money when you’re in between expected payments from customers.
- Next-Day Funding: When you need cash fast, next-day funding is essential. You choose a type of loan that places funds into your business bank account, usually within 24 hours. However, these are short-term loans that require quick repayment.
- Short Term Funding Loans: A short-term funding loan helps you make up for any cash flow issues you might be having. Most of these loans provide quick cash, and your business repays the funds with interest in a matter of months and not years.
- Long Term Business Loans: You might need a long-term business loan in amounts between $2,000 to $300,000 to accommodate your growth needs or invest in equipment. These loans are for larger amounts of money, and your business usually has several years in which to repay the money.
First Down Funding is ready to help you secure a merchant cash advance loan today. They can help you receive funds as soon as tomorrow to meet your needs. Fill out an online application today.