The Green Sheet Online Edition
November 26, 2012 • Issue 12:11:02
Capital resource for ISOs, MLSs
At a time when traditional lending remains inaccessible to many businesses, ISOs and merchant level salespeople (MLSs) are seeking reliable sources of funding to bolster business. To meet the ongoing demand for financial solutions, ISO Advance launched a residual cash advance (RCA) program specifically targeted to ISOs and MLSs.
"Banks just aren't loaning money to merchant processor professionals," stated Christopher Hernandez, Director at ISO Advance. "They don't understand the business. ISO Advance is ready to advance ISOs the cash they need to grow their business without the hurdles they'll run into at traditional lending institutions."
According to ISO Advance, the RCA program enables ISOs to leverage residual income portfolios to fuel business growth. ISOs are not required to switch processors when accepting an ISO Advance RCA, and the company offers RCAs with six- to 12-month terms.
According to Hernandez, any ISO earning at least $5,000 per month in residual income can apply. Advances range from $5,000 to more than $1 million, based on an ISO's six-month total residual income. ISO Advance generally provides advances valued at 75 to 100 percent of an ISO's six-month average. After submitting a one-page application, ISO RCAs are generally approved and funded within as little as five days, he noted.
So, what are ISOs most interested in funding at this point? "We provide funding for marketing, expansion and those unexpected business hiccups. Our rates are very competitive and well below typical merchant cash advance rates," Hernandez said.
A less than perfect credit score apparently does not necessarily eliminate an ISO or MLS from RCA consideration, because unlike banks, ISO Advance looks beyond FICO scores. "[T]here are inevitably going to be bumps in the road that can negatively affect your credit rating," Hernandez said. "Our evaluation is based on more than on just your score. Throughout the underwriting process we look at the whole picture."
The application process is relatively simple. ISOs interested in applying for an ISO Advance RCA are required to submit an agent agreement, residual statements and bank statements for the previous six months, a copy of a valid driver's license and a voided check from the bank account to which RCA funds will be deposited.
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