How It Works – Merchant Cash Advance Basics
AFS purchases a portion of your future credit card sales at a discount. We then collect a percentage of your daily credit
card sales directly from your credit card processor, or one of our other collection methods, until paid in full. Repayment is automatic. You
never have to worry about writing checks, making timely payments, or paying late fees.
For example, AFS will advance your business $50,000 today in exchange for $60,000 of your future credit card sales. AFS then
collects a set percentage (anywhere from 5 to 30 percent) of your daily credit card sales until the $60,000 is collected over a period of
months typically ranging from 5 to 12 months.
AFS can recoup its percentage of your credit card sales in the following ways:
- Split Funding – You will need to change your credit card processing to one of our partner processing companies. The percentage is
then taken automatically from your batch at the end of every day.
- Trust Account/Lock Box – No change of credit card processing is required. AFS will set up a special bank account for you into which
your credit card settlements are deposited. AFS then takes its percentage and transfers the balance directly to your regular checking
AFS Merchant Cash Advance Advantages
An AFS funding consultant can get you $10,000 to $500,000 in as little as 3 days with no application, broker or other up-front fees and the process is
simple with minimal paperwork.
Instead of requiring collateral, assets or high credit scores, American Finance Solutions determines the amount we advance your business based on your
credit card sales. No collateral or assets are required.
Renewal is easy. Once you are an American Finance Solutions customer, getting more money or renewing your advance is even simpler.
There is never a pre-payment penalty.
You can use your cash for anything. From adding a new location or inventory, to making payroll or paying taxes, to buying advertising or direct mail, the
cash advance is yours to use in any way you choose to grow your business.
You pay as you grow. The merchant cash advances are paid for with a percentage of the credit card transactions only. If your credit card volume is down,
then the amount collected by AFS is less and vice verse when volume is up.
- No fixed payments – flexible programs
- No fixed time frames for repayment
- Completely automated process
- AFS gets paid only when you get paid