Frequently Asked Questions

SVP Funding Group is a financial services provider that specializes in offering Merchant Cash Advances (MCAs) to small businesses. With over a decade of experience in the industry, SVP Funding Group aims to help business owners access quick and flexible funding solutions to meet their financial needs.

Key Features of SVP Funding Group:

1. Fast Approval: They typically offer rapid approval processes, allowing businesses to secure funding in as little as 24 hours.

2. Flexible Terms: SVP Funding Group provides customized repayment options tailored to the specific cash flow and needs of each business.

3. Transparency: They emphasize clear communication and transparency regarding fees and terms, helping clients understand the costs associated with their funding.

4. Supportive Team: Their team of financial experts is dedicated to assisting small business owners throughout the funding process, providing guidance and support.

5. Wide Eligibility: SVP Funding Group works with various industries, making it easier for businesses with different profiles to qualify for funding.

A merchant cash advance (MCA) is a financing option for businesses, where a lender provides a lump sum of cash in exchange for a percentage of the business’s future credit card sales or daily bank deposits. Unlike traditional loans, MCAs are typically easier to qualify for and offer flexible repayment terms, as repayments are tied to the business’s revenue. However, they often come with higher fees and interest rates. MCAs are popular among small businesses that need quick access to funds but may not qualify for traditional financing.

Merchant cash advances work by providing a business with a lump sum of cash upfront, which is then repaid through a percentage of the business’s daily credit card sales or bank deposits. The repayment process continues until the advance, plus any associated fees, is fully paid off. This means that payments fluctuate based on the business’s sales volume—higher sales lead to faster repayments, while slower days mean smaller payments. This structure makes MCAs flexible but can result in higher overall costs compared to traditional loans.

Absolutely!  All our applications are protected, digital stamped and we only share your information with our trusted lenders.

The duration of a merchant cash advance (MCA) typically ranges from a few months to a couple of years, depending on the terms set by the lender and the business’s sales volume. Unlike traditional loans with fixed repayment schedules, MCAs are paid back through a percentage of daily credit card sales, so the total repayment time can vary based on how quickly the business generates revenue. Generally, businesses can expect to repay the advance within 6 to 18 months.

Getting a merchant cash advance (MCA) is usually a quick process. Businesses can often receive funding within 24 to 72 hours after submitting their application and necessary documentation, such as sales records and bank statements. The expedited approval process makes MCAs an attractive option for businesses needing immediate cash flow, especially compared to traditional loans, which may take longer to process.

Business should consider getting working capital funds when it needs to cover short-term operational expenses, such as inventory purchases, payroll, or unexpected costs. It’s particularly useful during seasonal fluctuations, when cash flow is tight, or when a business is expanding and needs funds to invest in growth. Working capital can help maintain smooth operations and ensure the business can meet its financial obligations without delays.rdion Content

The amount of working capital a business needs depends on various factors, including its size, industry, and operating cycle. A common rule of thumb is to have enough working capital to cover at least three to six months of operating expenses. This includes costs like payroll, inventory, rent, and utilities. Businesses should also consider seasonal fluctuations and potential unexpected expenses when determining their working capital needs to ensure they can maintain smooth operations. Conducting a cash flow analysis can help in assessing the specific requirements.

The amount you can qualify for with a merchant cash advance (MCA) typically depends on your business’s monthly revenue, credit card sales, and overall financial health. Lenders often consider:

1. Monthly Sales:   Higher sales can lead to larger advances.
2. Business Stability:   A track record of consistent revenue can improve your chances.
3. Creditworthiness:   While MCAs are more flexible than traditional loans, your credit history may still play a role.

Generally, businesses can qualify for advances ranging from a few thousand to several hundred thousand dollars. It’s best to consult with lenders to get a specific estimate based on your business’s unique situation.

You don’t need perfect credit to qualify for a merchant cash advance (MCA), making it a more accessible option for many businesses. While we will review your credit history, we often focus more on your business’s cash flow and revenue than on your credit score. This means that even businesses with less-than-ideal credit can still secure funding, especially if they have strong sales and a stable income.

If you need additional funding or want to renew your merchant cash advance (MCA), you typically have a few options:

1. Renewal Options:   We offer renewal options where you can extend your existing MCA or increase the amount, provided your business meets their criteria.

2. Refinancing:   If you’re looking to consolidate multiple advances or reduce payments, refinancing may be an option.

Capital funding and bank loans are two distinct financing options for businesses, each with its own characteristics:

Capital Funding:
1. Source:   Typically comes from private investors, venture capitalists, or equity financing.
2. Repayment:   Does not require repayment like a loan; instead, investors expect a return on investment (ROI) through profits or equity.
3. Ownership:   May involve giving up a share of ownership in the business.
4. Flexibility:   Often more flexible in terms of funding terms and uses.
5. Risk:   Investors take on more risk, as they earn returns based on the business’s performance.

Bank Loans:
1. Source:   Provided by traditional banks or credit unions.
2. Repayment:   Requires regular repayments with interest, regardless of business performance.
3. Ownership:   Does not involve giving up ownership or equity in the business.
4. Requirements:   Often have strict eligibility criteria, including credit checks and collateral.
5. Risk:   The borrower retains all the risk, as they must repay the loan regardless of business success.

In summary, capital funding focuses on investment and equity, while bank loans are debt-based with a fixed repayment obligation.

The differences between capital funds and venture funding can be summarized as follows:

Capital Funds
– Definition: A broad category of financing that includes various sources of capital for businesses, which can be in the form of equity, debt, or hybrid instruments.
– Target Audience: Generally focuses on established businesses looking for funding to expand, manage operations, or make acquisitions.
– Risk Profile: Typically lower risk compared to venture funding, as it often involves companies with proven revenue and a stable business model.
– Investment Type: Can involve loans, lines of credit, or equity investments, depending on the specific needs of the business.

 Venture Funding
– Definition: A specific type of equity financing that invests in early-stage startups with high growth potential in exchange for equity ownership.
– Target Audience: Primarily focuses on startups and early-stage companies that may not yet be profitable but have innovative ideas or scalable business models.
– Risk Profile: Higher risk due to the nature of startups, which have a higher failure rate but also the potential for significant returns if successful.
– Investment Type: Usually consists of equity investments, often with venture capital firms taking an active role in guiding the company.