[elklakebob]

It seems that some companies are dialing back on the advance amounts being offered. What's the average percentage offered, based upon a merchant's average monthly credit card sales?

[J.Celifarco]

It seems that some companies are dialing back on the advance amounts being offered. What's the average percentage offered, based upon a merchant's average monthly credit card sales?

its not just how much they process, its how much they process as well as what the total gross sales number is. The total amount that can be collected per month, be it a MCA or ACH deal is always based on a % of the gross sales. For MCA deals if the credit cards make up a big % of the total gross sales then the amount offered based on the CC is going to be much less then on a deal where credit cards make up a small % of the total sales..
The % of gross sales that can be taken varies from bank to bank, generally you are looking at 10%-16% depending on the term

[GoodCustomerService]

or 16%-30% depending on how many positions.

[J.Celifarco]

or 16%-30% depending on how many positions.

lets not get into that.. I was basing this off of normal 1st position underwriting

[GoodCustomerService]

I hear you. Hard not to mention.

[MCNetwork]

Advance amounts are typically 100-150% of monthly CC volume, depending on term length and total gross monthly sales.

[J.Celifarco]

I hear you. Hard not to mention.

true but the whole lets take 30%+ of someones gross sales and expect them to survive I think is insane

[CO1]

[J.Celifarco]

how about 100% of there gross- which I have been seeing a lot lately of..

funding generally is around 100% of gross for deals that go out past 8 months-10 months. The % we are talking about is the gross holdback, the % of total gross sales that a bank is willing to take in 1 month compared to the months total gross sales..