FAQs
Welcome to our FAQ page, where you will find the most commonly asked questions about NorthPoint Business Funding. Any questions that may require more detailed answers, please contact us at info@northpointfunding.com or phone us Monday through Saturday, 7:00 a.m. to 7:00 p.m. Mountain Time at our toll free number, 866.305.7886 (locally 801.642.4688) or cell 360.991.8888.
Q. Are there minimum requirements to qualify for a merchant cash advance?
A. Yes. Most lenders require a merchant’s being in business a minimum four months, and be established in accepting credit cards and processing a minimum average of $5000-10,000 per month, depending on the size of your business.
Q. Is there a credit check?
A. We are agents for a large number of lending investors, some of whom will require a personal credit check as well as some basic documentation, including several months’ verification of credit card processing statements, your most recent bank statement and proof of ownership of your business. Our electronic cash advance does not appear on your personal credit report like a business loan would.
Q. Is there a discount for paying early?
A. By definition this is not a loan; therefore there is no prepayment pentalty, no fixed payment schedule , no maturity date, and no minimum monthly payment. At any time you can decide to pay off the balance owed.
Q. What can I use the money for?
A. It’s totally up to you how you use the money.
Q. I have an existing loan with a different company but I’d like more capital. Can I refinance?
A. Yes. Refinancing to get more funds is easy whether you have a loan with us or another firm.
Q. How much will an electronic cash advance cost?
A. This is not a loan, hence no maturity dates or interest payments. Advances are based on a discount on future expected credit card receivables. Pricing is based on a multitude of factors including business size, industry type, chargeback history, volume, ticket size, and various other important details of determining the probability of the business operating in the future as it has in the past.
Q. How long does it take to receive the funds?
A. Normally, following approval of your application we will have funds wired to your account within seven business days, in many cases sooner.
Q. My credit isn’t very good. Can I still qualify?
A. An electronic advance is not credit score driven; therefore it is not necessary for you to have good credit to receive an advance. Funding decisions are based primarily on a merchant’s strength of business.
Q. Will I need to change credit card processors to get the capital?
A. This is determined by our various lending partners; in many cases it is not necessary to change. The repayment process is automated and handled through your daily batching; credit card sales must be run through a processor that is compatible and approved for the lender’s software system.
Q. What if I need additional working capital after I receive my funding?
A. Typically, once roughly half of an advance is repaid, a merchant can apply for renewal.
