What is the Merchant Marketplace and how does this platform work?

The Merchant Marketplace funds America's small businesses that need capital to grow their business. Our syndication platform empowers you to be able to invest in these businesses and earn a potentially high return on your investment. Up to 75% of small businesses cannot be approved for a conventional bank loan or line of credit and get turned down by the banks. A Merchant Cash advance does not penalize a merchant's past history and typically focuses on the strength of the business to determine if they can afford an advance. We are much more lenient than banks and have a very high approval rating.

Let's go through the structure of an advance to understand how it works.

A business comes to the merchant marketplace and needs money for their business. Once we approve their advance, it is not a loan or line of credit, it's a merchant cash advance, which means we are buying their future receivables at a discount today. The discount is represented as a factor rate.

For example, let's say the merchant is approved for $50,000 at a factor rate of 1.40. The .40 represents the portion that we are buying the future receivables at, representing a 40% discount, which is $20,000 in our example. What this means is that the merchant will pay us back the initial advance of $50,000 + the $20,000 additional factor rate for a total of a $70,000 payback.

The terms of the payback are either on a daily or weekly basis. In our contract, the merchant gives us the authority to automatically debit the daily or weekly amount directly from their business bank account. Our typical term is usually no long then 7 months, so the $70,000 should be completely paid back within that time period.

So in gross terms, we will earn a 40% return on our money, however because we get our money back daily or weekly, the returns are actually much higher, especially when we reinvest that money into other Merchant cash advances.

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