FIRST FUNDS, LLC. An Introduction. AN OVERVIEW We offer cash advances to small and mid-size...
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Transcript of FIRST FUNDS, LLC. An Introduction. AN OVERVIEW We offer cash advances to small and mid-size...
FIRST FUNDS, LLC.An Introduction
AN OVERVIEW
We offer cash advances to small and mid-size merchants
We buy a percentage of the merchant’s futureVisa/MC/AMEX/Discover receipts
The average advance is $20,000 and average term is six to seven months. Payback is deducted from daily receipts automatically
Merchant does not personally guarantee repayment. He/she DOES guarantee compliance with representations and warranties.
THE NUMBERS
Merchant’s average monthly Visa/MC/AMEX/Discover receipts = $10,000
$10,000 X 125% = $12,500
Advance = $12,500 payback = $16,875
Payback = 1.35 X advance
Merchant receives cash today equal to 74% of the future receipts sold
25% of daily Visa/MC/AMEX/Discover receipts deducted until $16,875 collected (approx. 7 months)
TARGET MARKET
Restaurant/tavern
Small retailers
Cannot qualify for bank financing
Time constraints
Every merchant
REASONS FOR CASH ADVANCE
Expansion
Equipment purchase
Inventory purchase
Down payment
Acquisition
Buyout
Short term cash flow shortfall
MERCHANT ADVANTAGES
Merchant can receive up to $1,O00,000
No personal guarantee required on repayment
No reporting to credit bureaus
Payback based on timing of Visa/MC/AMEX/Discover receipts
Automatic payback
No fees or penalty for extended payback period
A/B credit not required
Financials/tax returns not required
MERCHANT REQUIRMENTS
Twelve (12) months in business
Minimum $3,500 per month in Visa/MC/AMEX/Discover
First Funds application
Four months processing statements
First Funds Merchant Agreement
Voided check
DOCUMENTS
COMMISSIONS
On Initial Merchant Agreements 7.5% of the payback amount, UP FRONT
On Repeat Merchant Agreements 4.5% of the payback amount, UP FRONT