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MPI CASH
Cash flow is the life’s blood of any business!
Cash flow is absolutely mandatory. It’s what keeps the doors opened and the lights on everyday. Without it everything suffers. A business without sufficient working capital, or cash reserves could be here one day and gone the next.
There are two major reasons why a company may be experiencing cash flow challenges associated with the growth curve getting ahead of their current cash flow to support the growth and expansion.
Seasonality or Inability to meet operational expenses until budget dollars are available, such as:
MPI Cash is a product that will not hassle the business owner
The economy is something no one can predict.
There is no method to determine how many customers will walk through your door. Nor, can you determine what unexpected expenses will be incurred in the future. It is all out of your control. That is why Simple Cash understands the need for some cash flow every now and then to help cover these unexpected expenses. In addition, you may need cash flow for other reasons such as launching a new promotion or even a remodel.
The MPI Cash Business Model is Revolutionary!
Our company provides a very large market with a service that for years has been unavailable to them. We are on a mission to help the small business man. A vast market often neglected by traditional financial institutions. Our goal is simple: to supply our clients with access to capital (and business benefits) so they can grow their business.
- Payroll
- Advertising
- Rent Seasonality
- Taxes Emergencies
- Inventory
- ...or any reason!
Improper internal controls on the dollars coming in and going out of your front door...
The lack to available and convenient funding sources can cripple a growing business. The MPI Cash Program is the preferred alternative for thousands of small business owners who can’t go to their bank, and have already exhausted other, more costly options.
MPI Cash is an Innovative and Creative Funding Solution, utilizing what you have already worked so hard to put into place: your present customers! This program is tailored to meet your needs and is designed to allow you to use your best asset to strengthen and grow your business: your future sales!
Q. How easy is it to get approved for MPI CASH?
A. It is much easier and faster than a typical bank loan.
We understand the reality and the hardship of owning and operating a small business, especially in a hospitality industry. As a specialized lender to the hospitality industry, 95% of our customers are in such businesses.
It typically takes 7 – 10 business days from the time a completed application package is submitted for funds to be transferred
Q. I am already with another financing company providing a similar financing. Does that mean I will get approved by MPI CASH?
A. Our credit underwriting standard is slightly higher than that of similar financing companies; however, approximately 85% of our competitors’ customers who applied for our funding have been accepted. The only sure way to find out is by Calling Today!
Q. Can I receive financing from MPI while the financing from another company is still outstanding?
A. Yes, but we must pay off any outstanding loans out of our first advance to you. (You receive all remaining proceeds). Depending on the particular finance company involved, there may be an exception to this policy, but most other credit card receivable companies will have to be paid off out of the first advance
Q. Is it going to cost me to apply for MPI financing?
A. No -- the application is free and there are no up-front fees charged to our customers.
We, do, however, charge customers for out-of-pocket expenses IF we do the loan. Typical transactional costs include those for individual credit reports ($6 per report), D&B reports ($50 per entity), overnight mailing costs, and UCC filing fees (typically $50 per filing for most states).
D&B reports are usually run once every 12 – 18 months, and the UCC filing is good for 5 years, which means that you won’t get charged additionally if a loan is renewed or “re-upped”.
Q. Does MPI CASH require a personal guaranty?
A. Yes. MPI CASH requires that all owners give personal guarantee.
If your business has a silent partner who is not involved in any of the management decisions, we can make an exception if certain conditions are met. The silent partner’s personal information must be verified by MPI CASH and the collective ownership share owned by the silent partner cannot exceed 20%. The personal information of the silent partner and their collective ownership share must be verified by the corporate charter.
Q. I have high enough overall sales, but my VISA/MC volume is very low. Is there any way I could receive funding?
A. Yes. Let’s assume that your monthly total sales amount is $30,000 a month, but your monthly VISA/MC sales amount is only $5,000 out of the total sales. You are seeking $10,000 funding.
We could provide you with a $10,000 advance as long as the credit quality supports such a decision. In these cases, MPI CASH will have to withhold 35% of the VISA/MC sales to satisfy payment requirement. We custom tailor our product to suit our customers’ needs all the time. Just ask!
Q. Can you fund bad credit accounts even for hard money standards?
A. Yes. The applicant can enhance his or her credit profile by bringing additional guarantor(s) or by pledging collateral. Guarantors can be another business or an individual. Collateral can include CD’s, stock accounts, Cash Surrender Value of a life insurance policies, or equity in real estate.
Q. Can the withholding percentage be changed after the account has been funded?
A. Yes. It will be evaluated by MPI CASH if the borrower requests it.
An upward adjustment to pay off the advance more quickly will always be approved. We can also accommodate downward adjustments as long as it is reasonable. The funding costs, however, will rise accordingly due to the lower payment stream. The rule of the thumb is that the longer the payback period, the higher the interest costs, and vice versa.
Q. Can the advance be re-upped?
A. When the advance balance is down to approximately 20% of the original balance, the borrower can request it. As a matter of fact, most of our customers opt to do just that.
The owner of the business can request a re-up by phone, fax, or mail. If you have been our customer for less than 12 months, you'll have to fax us the merchant statement summary page for the comparable period from the previous year. For example, if you called us in April of 2005 for a re-up, you should fax us the statements from Jan. – Apr. of 2004. If you have been our customer for more than a year, you don't have to send us anything. Re-up loans are usually funded within 3 business days of being requested.
Q. What happens if I need additional funding before my loan is down to the re-up threshold?
A. We usually don’t approve a re-up before the 20% threshold has been reached.. But we can make exceptions when there is an unforeseen and legitimate emergency.
Q. I need a longer term than 6 months. Do you offer such terms?
A. Yes. As you probably know, a longer term means a higher risk to lenders. Therefore, such requests can be accommodated if the borrower’s credit quality warrants such a decision. We can offer terms up to a year to qualified businesses.
Q. The standard 15% withholding isn’t suitable for my business. Can you change the withholding % to accommodate the needs of the business?
A. Yes. We can accommodate such requests as long as the change doesn’t increase our risks.
By adjusting the withholding %, the loan amortization period (or a payback period) changes accordingly. The higher the withholding %, the shorter the payback period, and the more the interest costs.
Please review the following table comparing the different withholding percentage, the resulting estimated total interest costs, and the payback period.
NOTE: The following tables are for illustration purposes only. Any changes to the standard terms require credit approval from MPI CASH.
Example of a 70%-of-Sales Loan |
Monthly VS/MC Sales |
$14,300 |
Loan Amount: |
$10,000 |
| |
Estimated
Total Interest |
Estimated
Payback Days |
(Standard) |
15% withholding |
$1,100 |
160 |
|
10% withholding |
$1,750 |
250 |
|
8% withholding |
$2,330 |
325 |
|
Example of a 100%-of-Sales Loan |
Monthly VS/MC Sales |
$10,000 |
Loan Amount: |
$10,000 |
| |
Estimated
Total Interest |
Estimated
Payback Days |
(Standard) |
20% withholding |
$1,170 |
170 |
|
15% withholding |
$1,650 |
240 |
|
10% withholding |
$2,790 |
390 |
|
Q. Can you summarize the entire process from application to funding?
A. Here is the step-by-step loan funding process:
- An applicant submits a complete application package.
- MPI CASH makes a funding decision.
- MPI CASH notifies the applicant of the funding decision.
- MPI CASH prepares the necessary loan documentation and overnight them to the applicant with a return envelope.
- MPI CASH then sends out a federal bank wire transfer to the applicant’s bank account.
- The withholding will begin on the same day the loan was funded.
Q. I would like to see how the advance gets paid off. Can American Microloan provide me with a sample amortization table?
A. Surely. Click here to see a sample amortizatiocn table of a $10,000 advance (70% of monthly VISA/MC sales of $14,285) with 15% withholding. It is assumed that the business is open 6 days a week, batches out every day, and the sales amounts are same throughout the life of the loan. |
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Merchant Application: 800-276-8028