Q: What can Opus Lending do for my small business?
A: We offer solutions for the working capital needs of your small business that is not a bank loan or small business loan, so you are more likely to be approved.
Q: Is there a restriction on how I use the advance?
A: You may use the advance for any purpose, including inventory, new equipment, additional space, payroll, or general working capital needs
Typical ways businesses use the funds:
Remodeling / Expansion
Q: How does a Business Cash Advance work?
A: When you apply for a merchant cash advance, a funder will review recent months worth of debit and credit card processing activity to determine an approval amount. The funder will then advance you the capital so that you can use it for any business expense and pay back through a small, fixed percentage of your future credit card and debit sales.
The advance is paid back by having an agreed upon amount of your daily bank deposits debited from your bank account via ACH daily or by having a set percentage of your merchant account settlements paid to the funder and the remainder passed through to your usual account.
Q: What are the minimum requirements to qualify for an unsecured commercial cash advance or merchant cash advance?
• Must have a minimum of $10,000 dollars per month in bank deposits or credit card processing from sales activity.
• Business must have no open bankruptcies or judgments
Q: How long does approval take?
A: Pre-approval is usually obtained within a matter of hours. Funding can take as little as 24 hours depending on the time it takes to receive the necessary documents required.
Q: How much can I qualify for?
A: Your monthly sales volume is the most significant factor is determining how much you will qualify you for.
Q: How soon can I receive my cash?
A: After a complete contract is submitted and approved, funding can happen in as little as 24 hours.
Q: If I receive a Merchant Cash Advance will I have to change my credit card processor?
A: We have arrangements with some of the largest processors in the nation, if you already use one of them, you will not have to change your terminal or processor. However, if necessary you may need to switch over to a preferred credit card processor. Opus Lending and its funders work with a number of outstanding organizations that will match or may beat your current rates, and will make the transition as easy as possible.
Q: What types of business qualify?
A: Opus Lending works mostly with service, restaurant, and retail businesses, but all kinds of businesses may apply and be approved. We do not restrict by industry or geography, we will review the performance and circumstances of each individual business requesting an advance.
Q: What documents must I submit to submit to receive an initial approval?
Completed and Signed business advance application form
Past 3 months of bank statements. Please include statements for all business checking, savings, and other accounts. If your business is seasonal, please provide bank statements for the past 12 months.
Detailed information regarding any existing Business or Merchant Cash Advance, i.e. Original amount of Advance, original term, payment and payment frequency, remaining balance, remaining term.
Q: What documents do I have to submit to receive funding?
Copies of Driver’s License or Passport and any one of the following:
Social Security Card or Medicare Card
Permanent Resident Card
Voter Registration Card
Copy of Business and /or Professional Licenses
We must obtain verification of bank account status and current status of lease before funding can occur.
Banking Verification Authorization Form or Login and Password for online banking access.
Landlord Contact Authorization Form, or real estate tax statement and /or mortgage statement (if property is owned).
Signed Sales and Purchase Agreement
Must be signed by all owners
Bottom of each subsequent page much be initialed by all owners
ACH Authorization form – Completed and Signed
Voided Business Check copy from same account as provided statements, no starter checks, checks without business name, or deposit slips.
Q: Is this a bank loan?
A: This is not a bank loan. Our program purchases a specific dollar amount of your future sales revenues and we provide money that you can use now.
Q: How can I speed up my business cash advance approval?
A: The most important thing you can do to speed the process is to make sure you send a complete and signed application form along with the required 3 months of bank and credit card statements.
Q: How much will a business cash advance cost?
A: Each advances pricing is specific to the business and their financial scenario.
The following information is used to determine pricing:
• The amount of the cash advance that the business qualifies for versus the amount advanced.
• The estimated time before we receive the amount of sales revenue that we purchased.
• Additional factors including but, not limited to the full underwriting review of documents submitted for consideration.
• The amount and status of other advances or debt outstanding
Q: What are the ranges of cost I should expect to pay normally?
A: All pricing is specific to each business financial scenario and is determined by company underwriting guidelines. For a more specific answer you can have a no cost consultation with one of our funding specialist.
Q: How is the pay back of the cash advance amount calculated?
A: Typically, a funders underwriting department will review the documents required in order to determine how much cash will be advanced. They then do their best to structure an offer that fits best with the business’ cash flow needs as well as the business’ ability to sustain itself and allows the funder to receive the sales revenue purchased.
Q: What if my business has a bad credit history or no credit history?
A: A poor D&B rating or personal credit score, including delinquencies will not be the sole determining factor in the approval or decline of a cash advance. Many of our funders will advance funds for businesses with bad credit and with principals who have very low fico scores.
Q: Is there any personal recourse?
A: There is no personal recourse, except in the case of fraud. Funders do not seek repayment from you personally if you cannot pay back the advance. That being said we take care to make smart underwriting decisions before we approve businesses. We have a very low rate of merchants who default.
Q: Are many businesses turned down for a Cash Advance?
A: We have a very high approval ratio (approximately 90%). Having underwriting flexibility assists funders in being able to find funding solutions for almost any business.
Q: How much of a cash advance can a business receive?
A: A business can receive up to 125% of their average Monthly Cash or Credit Card Sales volume.
Q: Is Opus Lending providing the cash or is another company providing the cash?
A: Opus Lending works with a select group of premier funding providers to find a solution for your company.
Q: Can a business request another advance before they have paid off their existing cash advance?
A: A business may qualify for another cash advance once they have paid back typically between 50% and 60% of outstanding business cash advance.
Q: Why do you need to see my financial information?
A: Just as with any financial transaction there must be some basis for determining whether or not providing an advance to a specific business is a sound financial decision. Therefore it is necessary that funders request some of your financial information in order to make that determination.
Since the repayment is a fixed percentage, the amount adjusts to the ups and downs of your daily payment card volume. If you have a good day, you pay back more on your advance. If your sales are slow, well, you pay back less. Regardless, you will have enough cash flow to deal with your day-to-day business functions. You can even get additional capital before your advance is paid off!