- How can I qualify for an unsecured business cash advance?
- You have a business that accepts CREDIT CARDS as a form of payment.
- You process a minimum of $5000 dollars a month.
- You can provide 3 months of credit card processing statements.
- You have been accepting credit cards for atleast 3 months.
- How easy is it to get approved by Express Funding Group?
It is a lot easier and faster than a typical bank loan. We understand the reality and the hardship of owning and operating a small- medium size business. The majority of our Executive Funding Specialists have also owned and operated their own small to mediums sizes businesses themselves.
- How does the program work?
You are advanced up to $1,000,000 based on your current sales receipts. A small percentage is deducted from your ongoing Visa / MC / AMEX & DISCOVER receipts. There are no fixed payments and no fixed term time frame.
- How much will a business cash advance cost?
Pricing is based on the size of cash advance, the estimated time of distribution, and various other integral details of the cash advance program. This explained fully in the Cash Advance Approval sheet.
- Is there a fee for providing a small business cash advance?
No, there are no administration fees.
- Will bad credit affect my cash advance request?
It is not necessary for you to have good credit to receive a business cash advance. A poor credit rating, including delinquencies, will not normally influence a cash advance.
- How fast can I get a small business cash advance?
7 business days
- How much of a cash advance can I receive?
$5,000 to $1,000,000
- How will I pay back the business cash advance?
On a formula calculated based on your cash flow projections, we partner with you to determine your optimal payment.
- Is this a loan?
No. This is not a loan. It is a purchase of future receivables.
- When I have repaid my first cash advance, How easy is it to apply again?
If you have experienced no change in Financial status you will be approved automatically.
- How complicated is the paperwork?
The paperwork that you will need to fill out is quite simple and takes no more than ten or fifteen minutes to complete. We have Funding Specialists on hand in our contact center to help you through this process.
- I am already with another financing company providing similar financing. Does that mean I will get approved by Express Funding Group?
Our credit underwriting standard is slightly higher than that of similar companies; however, approximately 95% of our competitors' customers who applied for our funding have been accepted.
The only sure way to find out is by submitting an application.
- Can I receive financing from Express Funding Group while the financing from another company is still outstanding?
Yes, but we must pay off any outstanding cash advances out of our first advance to you. (You receive all remaining proceeds). Depending on the particular finance company involved, there may be an exception to this policy, but most other credit card receivable companies will have to be paid off out of the first advance.
- Is it going to cost me to apply for Express Funding Group financing?
No -- the application is free and there are no up-front fees charged to our customers. The sooner you get your application in, the quicker we can get back to you on the amount of monies we will be able to advance you.
- I have high enough overall sales, but my credit card volume is very low. Is there any way I could receive funding?
Yes. The minimum requirement for qualification of the cash advance program is $5,000.00 of your monthly VISA / MC / AMEX / DISCOVER transactions. We custom tailor our products to suit our customers' needs all the time. Just ask!
- Can the advance be renewed?
When the advance balance is down to approximately 30% of the original balance, the borrower can request it. As a matter of fact, most of our customers opt to do just that.
The owner of the business can request a renewal by phone, fax, or e-mail. Renewals are usually funded in less than 24 hours of being requested.
- Do I have to switch my current credit card processor?
No. You do not necessarily have to change your credit card processing company. We are a funding company, not a credit card processing company.
- Who should I call right now with questions?
Call a Funding Specialist at 800-505-8117
1-800-505-8117
- What will happen when my application is approved?
You can then review the rates and terms to see if this loan is right for you.
- What you need to know about Express Funding Group?
Express Funding Group is a merchant and small business loan company specializing in Unsecured Loans and Lines of Credit for all types of businesses. We offer several types of loans which cater to many types of companies in different situations. Whether you are a start-up company or a seasoned business, we have a product to match your immediate needs.
- How Long does the loan process take from beginning to end?
You can usually expect to see results within 48 hours of your completed application. Funding can then be received in as little as 3 days after you receive approval.
- Is my information secure?
Absolutely! We encrypt your forms using the latest 256 bit encryption. Look for our secure logo on all our application pages. We work hard to protect your private information.
- When do I make my first payment?
Your First payment is typically due after the first 45 days.
- When will I find out if I pre-qualify or not?
After your application is sent, our business consultants require a couple of hours (during our normal business hours) to review your application and determine how much you are able to borrow at this time.
- How does this process work?
You fill out a secure application either online or by phone. When we receive this information we perform a credit analysis which helps us determine how much you can borrow at this time.
- What qualifications do I need for a small business loan?
Qualification is also based on your ability to repay the loan. Your credit history primarily determines your ability to repay this loan. To qualify you must have good to excellent credit.
- What types of documentation do I need to provide?
The documents needed to process a loan vary depending on the type of loan and amount. We strive to keep this to a minimum and to streamline the process. It is to both of our advantages to make this quick and simple.
- If I have a credit history that is limited, am I eligible?
We like to see three active lines of credit for at least 3 years or longer on your credit reports. However, if you have a higher income and a stable credit rating, you may qualify for a smaller amount with some of our loan programs.
- If I have bad credit or a bankruptcy, Can I still apply if I have a co-signer who does have good credit?
Yes, you may have a friend or relative apply for this loan if you have had a bankruptcy in the last 10 years or less.
- How much can I borrow at this time?
The main factors are your credit rating and history, previous credit limits, residence status, income, and gross sales which largely determine how much you can borrow.
- If I pay off my loan or line of credit early, is there a pre-payment penalty?
NO! Express Funding Group only works with lenders who do not stick you with a pre-payment penalty. This allows you to keep this loan as long as it is convenient for you. Pay it off early if you choose!. Full details will be disclosed before you accept the loan.
- What should I use Express Funding Group for my loan instead of applying with the lenders myself?
We know the loan business well and have relationships with our lenders which can benefit you by getting the application approved the first time with the most amount of money you can qualify for. Applying to the wrong lenders the wrong way is a big mistake ... this can cost you both time and money. If you make a few mistakes and too many lenders enquire about your credit, you may disqualify yourself from getting a loan, even if you have perfect credit.
- What types of interest rates can I expect on these loans?
The interest rate ranges from prime to prime + 4% depending on your credit status and which company you apply with.
- Which is better, a line of credit or a business loan?
If you are a start-up company, you have special needs. in this case you would probably do better with a line of credit which allows lower payments and greater flexibility in paying back the loan when it's convenient for you.
Your payment on a Line of Credit will vary between 1% and 2% of the outstanding balance. For instance, if you were to borrow $100,000 your monthly payment would be between $1,000 and $2,000 with a large part of this going towards your principal.
Terms also vary between 24 to 84 months.
- What qualifies as a Business Loan?
Business loans require a company to be in operation for at least 24 months having average annual gross sales of at least $150,000. Loans are giving to either a single or set of business owners which comprise 90% of the ownership of that company. Guarantors must meet all the requirements for the loan and their personal credit determines if the loan is offered.
Express Funding Group offers a Start-Up loan program that funds from $10,000 to $100,000 for businesses that have not hit their 2 year anniversary and who have not achieved $150,000 in annual gross sales.
1-800-505-8117
- Is this a new concept? Why don't more people know about this?
This is not a new concept. This has been available for years, however most financial advisors or stock brokers are not told about these types of investments because they do not provide sufficient profit for the companies they work for. If they are investment firms or stock brokerages, they do not want their clients moving funds outside of their portfolios where they draw a percentage of your income.
- Is this a loophole?
No. According to the Employee Retirement Income Security Act of 1974 (otherwise known as ERISA), the responsibility of retirement saving from the employer has now been passed to the employee. This specific exception makes Employee Stock Ownership Plans (ESOP) possible. This also enables small private companies to utilize retirement funds as a source of business capital.
- Why is this becoming more popular now?
This process has been gaining popularity over the last 10 years in both the consumer and professional markets. This will continue as professionals learn about the benefits to their clients, allowing them to take their retirement investments into their own hands. The baby boomers are also looking at this as an alternative because they have had plenty of time to accumulate their assets in their retirement accounts over the years. With the stock market volatility, their security investments lack luster as they move into a time when they need more security.
- Can I pay myself a salary?
Yes. The interesting part about this process is that it requires you to be an employee of your new business by providing a useful service to the company. You not only gain the ability to draw a salary, but this process actually requires you to do so.
- What is the maximum salary I can draw?
You are an employee of the company and as such you can draw a fair and equitable wage based on your position and duties in the company. Just make sure your salary is "reasonable" based on your duties and responsibilities. Any HR firm can help you with determining this and there are several sources online that provide this information.
- What type of business can I purchase?
Whether you are starting a new company, or purchasing an existing one, almost any legal business or franchise can be purchased. The only exceptions are when the business is deemed to be "solely the investment of capital" such as when you would be loaning your retirement funds to others.
- What kind of corporation do I have to use?
This program utilizes a C Corporation (C Corp.) business structure to meet the compliance requirements of ERISA and Internal Revenue code. A Limited Liability Company (LLC), Partnership or S Corporation (S Corp) would not meet the statutory requirements necessary to operate this structure.
- What about double-taxation (for the C Corp)?
Many people worry about the "double taxation" which refers to taxation on dividends paid by the C Corp. These can be avoided by using a qualified tax professional, however you can not avoid taxes when you take a distribution from your retirement plan.
- Do I have to offer the 401(k) to all employees?
Any employee that meets all of the eligibility guidelines for the 401(k) plan must have the option to participate in the plan. For information contact our office.
- Why should I use this program versus a traditional bank loan?
You can avoid all debts, fees, and interest associated with taking out a loan by using your retirement funds as capital for starting your business our purchasing a business. This will reduce your overhead in the critical early stages of your business and allow you to become profitable much sooner. Why not take the money you would have spent on the interest and fees and re-invest it back into your own business? Think of all the things you can do with this additional capital ... marketing, promotions, equipment, staff, programming, etc.
- How much of my IRA can I use for my business venture?
Your entire IRA can be rolled into your new business venture in most cases.
- When do I have to pay my IRA back? Is this a loan?
The return of investment is typically performed through a stock buy-back from the 401(k) by the corporation or when the business sells. This is because the involvement if your IRA is not a loan, but an investment into your new business. Therefore, there is no requirement for the plan to recapture its investment.
- Can I use this with any business and can I invest in securities as well?
Yes. Almost all businesses work with this program. Businesses who receive a significant portion of their income from lending or investing capital may not meet the program requirements. If you have any questions about your company, please call our professionals to talk specifically about your situation.
- Do I have to get an appraisal if I am buying a business?
This is usually not necessary when starting a business, or purchasing a business on an arms length basis from an informed and uncompromised third party. However, if you are purchasing an existing business, it is usually advised and prudent to get an appraisal whether you use your retirement funds or not. If you would like to recapitalize an existing business that you currently own, a business appraisal would be necessary.
- Can my spouse or another close family member co-invest, work for the business, or otherwise be involved?
Yes; the exemption to “prohibited transactions” permits participation by any friends or family members.
- What are the maximum contributions that I can make per year to this new 401(k)?
The maximum contribution that you can make for the tax year 2007 to your new 401(k) is $15,500. If you are over the age of 50 there is a clause where you can make a "catch-up" contribution of an additional $5,000.
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