[HeatherF]

if a merchant needs $50K they arent going to go with a company who says I'll give you $10K today and increments as you perform with us- This just seems in my opinion as a way for a company to mitigate their own risk to giving out the full $50k at once- Too many funders out there will give the full amount upfront to a qualified merchant without the need of increments....

This program is designed for merchants who have credit issues and therefor would not receive 50K up front as they are too high of risk to give them 150% of their receivables up front. It is true that if a merchant needs 10k or 20K and we are only offering 5 or 8 that the product might not be right for them but no one in this business has a 100% conversion rate on the deals they receive and that is because not every program is right for every merchant. If you want to compare this program to a 6 month program i will go ahead and give you an example of how this works.

A merchant processing 30K on average a month under our Equity program will receive a contract for 76,000 and will receive 8 disbursements of 9,500.

Now a merchant processing 30K on a 6 month program could receive a contract of 30K to 35K but would only be eligible for more funds around the 5 month mark (under most companies) by the time they are eligible for a renewal with that company we have already given them 38,000.00 and they don't have to go through the renewal process each time.


So it is just what makes sense for the merchant and some times receiving a steady flow of cash infusion every 6 1/2 weeks just makes sense.