Here are the important points about the consumer finance program:
1. Approve customers down to a 570-580 credit score for up to $10,000 (starting cap is $8,500 for first 6 months or so of business with new merchant) as long as they have an income and are currently paying their bills.
2. Do not require a down-payment be made by your customer in order to obtain financing.
3. The lender will finance 100% of the invoice to your customer up to the maximum amount or he will finance any part of the invoice if a cash down-payment is made.
4. Only charge a fee on what is financed for the customer.
5. Any down-payment obtained is the merchant’s.
6. The standard programs can be created for any length of time up to 36 months and 2-3 programs are created so the merchant has a choice for each customer.
7. Can always change the options at any time, at no cost, if necessary.
8. Online application takes about 5 minutes to complete and receive immediate approvals which the customers can accept right on the spot, at your location or with any device that has internet access.
9. If the customer is not at the merchant location at the time of application they will be sent an email to allow them to accept the financing (typical for making the purchase over the internet or phone).
10. Once the approval is accepted, both merchant and customer will receive an email with all the details of the transaction.
11. Initial payment, made in 3-5 days is the large majority of the total (for the 6 month program it is 85% and for the 12 month program it is 80% of the total financed).
12. Initial holdback/reserve period is will be 6 or 12 months and then the reserve is distributed on a quarterly basis.
13. Once the lender has an established relationship and the reserve in being distributed quarterly, we can also look at increasing the percentage paid immediately and decreasing the holdback/reserve percentage.
14. Optional for customer to go on the auto-debit plan.
15. Each accepted contract there is a $15.99 doc prep fee (all my clients pass on directly to the customer).
16. A $295 annual administration fee, charged at the end of each year on the program.
17. Both the $15.99 per accepted contract and the $295 annual fee are deducted from the reserve account and you are never asked to write a check for those fees.
18. No monthly fee.
19. No minimum of transactions.
20. Takes about 3 weeks from receipt of application and supporting documents to have set up merchant.