MCA TEST Part 1

37 Questions
* Required

1. Email address *

softleighd@gmail.com

2. What is a merchant cash advance? * 1 point

Mark only one oval.

A Loan.

B Credit Card Processing.

✔ C Advance against future receivables.

D A merchant that wants cash and gets an advance.

3. What is a Factor Rate? * 1 point

Mark only one oval.

✔ A multiplier based off the intended funding amount.

Interest.

Reserve

Payback Amount

Other:

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4. Where did Merchant Cash Advances start? * 1 point

Mark only one oval.

✔ New York

Boston

California

Hartford

Greenwich

Other:

5. What is an Advance Amount? * 1 point

Mark only one oval.

How much money Merchant pays back

The percentage a Merchant is paying

✔ The amount the Merchant is being advanced

The amount being deposited into Merchant's account

6. What is a Holdback Percentage? * 1 point

Mark only one oval.

The amount of fees a Merchant is charged

The interest rate for an advance

✔ The percentage of sales deducted each time Merchant batches out.

None of the above

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7. What does batching out mean? * 1 point

Mark only one oval.

The report a Merchant receives at the beginning of the day

The process that occurs with every credit card transaction

The process of reporting at the end of the month

✔ The method used to process a day's worth of credit card transactions all at once

8. How often is a daily debit taken? * 1 point

Mark only one oval.

It is taken 7 days a week including holidays and weekends

It is taken every day except holidays

It is taken 5 days a week including holidays

✔ It is taken 5 days a week, no holidays, no weekends

9. If a merchant's holdback percentage is 25% and the merchant batches out on 1 point

Easter for $4,528, what is the dollar amount being debited? *

Mark only one oval.

✔ $1,139

$3,396

$1,811.20

None of the above

10. Can a Merchant prepay the amount owed? * 1 point

Check all that apply.

Yes
No

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11. What is the definition of Purchased Amount * 1 point

The amount paid back to the lender

12. A merchant does $10,000 a month in V/MC sales and $25,000 a month in 1 point
total sales. The Merchant's holdback percentage is 25%. How much is being
held daily? *

Mark only one oval.

✔ $125

$500

$312.50

None of the above

13. Which term describes the amount that the Merchant receives? * 1 point

Mark only one oval.

✔ The Advance Amount

The Purchased Amount

The Expected Amount

None of the above

14. What is the daily payback amount: Purchased Amount is $12,800 to be paid 1 point
back in 4 months? *

$152.38

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15. How many credit profiles are there? * 1 point

Mark only one oval.

✔ 2

16. How many digits are there in a Tax ID number? * 1 point

Mark only one oval.

✔ 9

17. When does a business owner not use their Tax ID number? * 1 point

Mark only one oval.

✔ When they are not from this country?

When they are a LLC

When they are a Corporation

When they are a Sole Proprietor

18. Find the factor rate with the following information: Advance Amount: 1 point

$10,000 , Purchase Amount: $12,800, Daily Debit: $160 *

1.28

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19. What is the tax withholding 941? * 1 point

Check all that apply.

Tax on Goods
Tax on Services
Income Tax
Payroll Tax

20. What does a business' A/R show? * 1 point

Mark only one oval.

The profits and losses of the business

Who is taking money from the business

Who is paying the business

✔ All of the above

Other:

21. Name the two ways to collect payments * 1 point

V/MC and ACH

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22. A Merchant has just been approved for funding. Their payback amount is 1 point
$12,800. The term is 80 days. What is the daily debit? *

$160

1 point

23. What does it mean when a social security number begins with 9? *

1 point
Tax ID #

24. How do you find the total payback amount? *

Advance amount x Rate

25. What does a Merchant's credit score impact? * 1 point

The Term

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26. Solve the problem: John obtains a cash advance for $100,000. His factor rate 1 point

is 1.25. What is his payback amount? *

$125,000

27. What is the factor rate: Purchased Price - $7,500 Purchased Amount - 1 point

$11,025 *

1.47

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28. What is an ISO? * 1 point

Independent Sales Organization

29. What is a rate review? * 1 point

??? (Unfamiliar with this term)

30. When is it ok to use the term "loan" *

When the product isn’t a cash advance

31. What is needed to pull a Merchant's Credit? * 1 point

Mark only one oval.

✔ Social Security Number

Business Address
1 point
Business Start Date

Lease amount

Other:

32. If there is a returned check on a Bank Statement, what does that

1 point
mean? *

Non sufficient funds

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33. What is an NSF? * 1 point

Non Sufficient Funds

1 point

34. What is the difference between a credit report and a background check? *

Credit vs Criminal Record

1 point

35. How many Bank Statements should the Merchant provide when submitting 1 point
an application *

Mark only one oval.

12

None

✔ 3

None of the above

Other:

36. Another name for Advance Amount? * 1 point

Funded Amount

37. What is a restricted industry? * 1 point

An industry that cannot be funded

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