Professional Documents
Culture Documents
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
rainstarcapitalgroup.com
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
credit card receivables, or sales that customers used their credit cards to pay with.
With other qualifying factors considered, a funder will advance up to 200% of the
average monthly credit card receivables. In this example, Marys Flower Shop was
offered $22,000 to be paid back over 9 months with a daily percentage of 15%. So
if Mary averages $20,000 per month in credit card revenue, it is safe to assume her
average daily revenue per month is around $1000.00 per day. (30 days per month,
minus 8 Saturdays & Sundays) If she averages $20,000 per month, that is divided
by 20 (Sat & Sun are not included) days to equal $1000.00.
Mary has agreed to allow the funder to take 15% of her daily credit card sales for 9
months as payback on the $22,000 that is advanced to her.
$1000.00 x 15%=$150.00
9 Months= 180 payments
180 x $170.00=$27,000
PLEASE NOTE:
Funders require daily debits as payback Monday through Friday, excluding
holidays.
In the Cash Flow Advance arena there are 20 payback days in a month. For
example:
3 month term means there are 60 payback days per month
4 month term means there are 80 payback days per month
5 month term means there are 100 payback days per month.
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
While MCAs or Merchant Cash Advances were very popular some 10 or so years
ago, there has been a new kid on the block. This new kid is commonly called, ACH
or Bank Statement Advance.
Funders realized that not all merchants and/or businesses accepted credit cards. If
the banks said no, these businesses were often left out in the cold in the alternative
commercial funding arena. Realizing a new funding model, funders began offering
these businesses an advance based on their total monthly revenue, whether or not
that business accepted credit cards.
For example. Joes Taxi Company had been in business for a couple of years
and he needed to make some expensive repairs to some of his cars, but banks said
no. Joes Taxi Company was pretty much an all cash business. Upon analyzing
Joes past 4 months business bank statements, it was determined he averaged
$33,000 per month in gross revenue. With all things considered, a funder will
advance a business anywhere from 40% to 85% of their average monthly revenue
for an ACH or Bank Statement Advance over a 3-18 month term. Joe was offered
$21,450 at a discount factor of 1.38 for 6 months.
Since this is not a loan, there are no interest rates. On ACH Advances, the
payback is calculated using a discount factor anywhere from 1.18 to 1.50 and
sometimes higher!
In Joes case, he has total payback of $29,601.00.
$21,450 x 1.38= $29,601
6 month term or 120 Days of payments
$29,601 divided by 120 days= $246.67
Joes account will be debited $246.67 daily Mon thru Friday for 6 months.
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
PLEASE NOTE:
Even though, good credit is not required to receive an advance, the personal
credit of the owner is part of the determining criteria of what discount factor
a merchant will get. The better the credit, the better discount factor a business
receives.
Example: Often credit scores 650+ can expect discount factors ranging from
1.18 to 1.28.
REVIEW
A Cash Flow Advance is not a loan, it is an advance based on the historical
revenue and the propensity of a business to continue that same average revenue.
With a Merchant Cash Advance (MCA), a business must accept credit cards.
Credit Card processing statements are reviewed to determine a merchants
eligibility to obtain an MCA. A business can expect to receive up to 200% of their
gross monthly credit card revenue.
With an ACH or Bank Statement Advance, a business DOES NOT have to accept
credit cards. 4 months of business bank statements are analyzed to determine a
merchants eligibility to obtain this advance. A business can expect to receive 40%
to 85% of their gross revenue.
Cash Flow Advances are short term. Terms typically range from 3 months to 24
months. 9 months+ is uncommon for most businesses. Businesses who receive
terms 9+ months often include healthcare businesses and businesses where the
personal credit of the owner is 680+.
With an MCA, a business will be debited daily Mon- Fri, excluding holidays,
anywhere from 9% to as high as 32% of their credit card sales revenue to pay the
advance back.
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
On an ACH or Bank Statement Advance, a business has a set amount debited from
their bank account daily Mon-Fri, excluding holidays.
In terms of a payback month, funders typically count 20 payback days per month.
Some businesses may qualify for weekly debits instead of daily.
HOW DOES A BUSINESS QUALIFY FOR A CASH FLOW ADVANCE?
PROGRAM
A
B-C
HIGH
RISK
TERM
UP TO
$2M
1ST ONLY
18 MO
6-9 MO $300,000
1ST &
2ND
1-4 MO $150,000
1-3
CREDIT
MIN
TIME IN
BIZ
1YRS
1.18+
BOTH
650+
FICO
470+
4 MO
1.35+
BOTH
450+
4 MO
1.40+
BOTH
FACTOR
RATE
Minimum Annual Revenue: $100,000 and Minimum Avg Daily Bank Balance: $500
Number of Negative Days: Up to 7 in 3 consecutive months. No more than 9 in a recent month
Tax Liens- Must be on a payment plan if over $25K
Bankruptcy- Must be discharged
No industry restriction on High Risk Program
A UCC search will be done prior to funding and a UCC filed post closing
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
Some programs require origination and processing fees that are deducted from the advance. Please
note that RAINSTAR CAPITAL GROUP DOES NOT CHARGE UP-FRONT FEES OF ANY TYPE.
Entertainment Groups
Finance Companies
Attorneys
Gambling/Casino
Kiosks
Bail Bondsmen
Mortgage Lenders
Brokers
Pawn Shops
Payday Loan
Check Cashing
Religious Institutions
Collection Agencies
Consignment Shops
Insurance Agencies
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
Amusement
Appliance Dealers/Sellers
Architecture Firms
Caterers
Clothing Wholesalers
Construction /Contractors
Convenience Stores
Daycare
E-Cigarette
Electricians
Fuel Related
Furniture/Mattress
Grocery Stores
Home Based Businesses
Hardware Stores
Home Improvement
Hospitals
Hotel/Motel
Ice Cream Stores
Internet Retail
Learning Institutions/Day Care
Lumber/Wood Products
Mining
Nightclubs
Printing/Publishing
Radio/Television
Salon
Transmission Shops
Transportation/Freight
Phone: 616-821-6535
Rainstarcapitalgroup.com
Theaters
Toy Stores
Vending Food/Beverage
Distribution
Landscaping
REQUIRED DOCUMENTATION:
SIGNED- 1 Page Application (Electronic Signatures are NOT
acceptable)
4 Months Business Bank Statements
4 Months Merchant Processing Statements (if business accepts credit
cards)
Photo ID
Voided Business Check
Copy of Business Lease or Mortgage Statement
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
Within 4-24 hours, processing will email you a spreadsheet with funding offers for
your merchant. See Example Below
Dear Joe,
Please see the offers below for Macs Heating & Air. Please discuss these options
with your client and let us know which offer he would like to go with.
ADVANCE
$22,300
$17,250
FACTOR
1.32
1.26
TERM
5 mo
4 mo
PAYMENT
294.36 daily
271.68 daily
COMMISSION
$1115.00
$862.50
Once we know which offer your merchant accepts, a contract will be emailed to
him/her for either a wet signature or an electronic signature. At this time an email
will also be sent to you, requesting the documents needed to fund the file.
Typically this will be: copy of photo id, voided business check and lease/mortgage
statement.
Upon receipt of signed contract and documents, the file will be sent for final
underwriting.
Underwriting will verify landlord/lease, verify bank account, call the merchant to
discuss the terms and make sure he or she understands the advance.
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
Upon successful completion of the above due diligence, the file will move to
funding review.
After verification that everything is in order, a wire will be sent to your merchants
account.
ONCE SIGNED APP & DOCS ARE RECEIVED BY UNDERWRITING
THE TURN AROUND TIME IS TYPICALLY A FEW HOURS TO 1 DAY.
Phone: 616-821-6535
Rainstarcapitalgroup.com
EQUIPMENT LEASING/FINANCING
Can be used to purchase or lease, new or used commercial equipment or vehicles.
Customer must have at least a 500 credit score and some business credit history
that shows they can support the pay back on the lease. If there is no business credit
history, a guarantors credit score must be at least 680.
The vendor is paid directly for the invoiced merchandise.
Typical payback is 2-5 years with set monthly payments. Rates can range from 8%
to 30% depending on the credit risk
Some programs, especially for trucking companies, a down payment may be
required or the borrower can put up collateral that is valued 2X the value of the
trucks and equipment being purchased.
Phone: 616-821-6535
Rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
HOSPITALITY LENDING
Our nationwide lenders can provide for flagged and non-flagged hotel/resort
properties purchase, refinance and PIP (Property Improvement Plan) financing for
properties nationwide. Please contact us if you need Hospitality Financing!
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
MULTIFAMILY LENDING
Our nationwide lenders can provide loan products 100k and up on any multifamily
unit size 2 units and up. Fixed rate, interest only and floating rate are all available.
Strong Opening
Conduct the Analysis
Return on Investment
Confirm next step
Statements Received, Call Back
Closing Part 1
Closing Part 1
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
My company Rainstar Capital Group provides cash for small businesses (or
industry specific)
Choose only 1:
A. We can get money for your business within 2-3 days
B. Pre qualified within hours
C. Funding anywhere from $5000 to $500,00.
(B) Get Permission: (choose only one)
1. Do you have a minute to talk about receiving cash for your business
within the next 2-3 days?
2. Do you have a minute to talk about getting cash for your business?
3. Do you have a second to go over how I can transmit from $5000 to
$500,000 directly to your business account?
4. Do you have a minute to discuss how I can get you prequalified for up to
$500,000 in 24 hours?
CONDUCT ANALYSIS
1. What projects are you working on that could use some additional working
capital?
2. If I could get you from $5000 to $500,000 in cash, how would your business
use the money?
This is the most critical part in the conversation. Discovering or creating the need.
Ask questions so they can talk about their business. The more they talk about their
business, the more they will like and trust you.
YOU: So tell me about your business?
Key Point: Change pitch in voice to show impressiveness. Example: Wow, thats
awesome John.
YOU: John, how will that money help you grow your business? Thats Great!
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
RETURN ON INVESTMENT
Bob, how much do you think you would profit monthly by (use of the money)?
(Make sure you get a dollar amount)
So youll be bringing in about $_____ in 2-3 years.
Wow, thats excellent!
So how soon do you need the money?
Phone: 616-821-6535
Rainstarcapitalgroup.com
Bob, all I need to do now is have a contract sent over to you that will outline the
terms I just discussed with you. Once you sign the contract and get it back, Ill also
need: (list of documents) to get you funded within the next 24-48 hours.
CLOSING 2
Bob, everything looks to be in order. Now in the next 24 hours, our underwriting
department will give you a call to verify the information on the application and the
contract. Once everything is complete, we should fund the money directly to your
business account within another 24 hours.
I wish you great success with your project Bob!
Phone: 616-821-6535
Rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
o
o
o
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Manta
Chainstore.com
Yellowpages.com
City Search
Goleads.com
Your Local Library
InfoFree.com
Salesgenie.com
Edirex.com
Upwork.com
Credit.net
Chamber of Commerce
Meetup Group Networking
Banks
Accountants
Always ask for referrals
RESOURCES:
Fiverr.com-design flyers, scripts, etc
Vistaprint.com- business cards, flyers
Canva.com- free site to design your own graphics
Smore.com- free site to design newsletters
Mailchimp.com- email blast your newsletters
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com
FINAL THOUGHTS
1.
2.
3.
4.
5.
If your business is seeking funding or you are looking to join the Rainstar
Capital Group team as a broker, ISO or in house sales representative please
contact our CEO- Kurt Nederveld.
Kurt Nederveld
CEO
Direct: 616-821-6535
Email: Kurt@rainstarcapitalgroup.com
Email: Kurt@rainstarcapitalgroup.com
Phone: 616-821-6535
Rainstarcapitalgroup.com