Frequently Asked Questions (FAQ) and Answers about Discount Merchant Funding and Cash Advance from Barry Sharf:#1 – Who is Discount Merchant Funding (DMF) & what does it offer?
Discount Merchant Funding (DMF) is a financing company base on Long Island, New York. DMF offers an array of financial products, including but not limited to: Traditional Merchant Cash Advance, Equipment Financing, and Factoring.
Discount Merchant Funding is the direct lender – meaning it is the entity that is actually providing the money to its “client/merchant”, not a broker who works through an outside funder. Simply put, “we sign the checks”. Therefore are invested in the deals, and thus truly care about each and every merchant.
At DMF, Barry Sharf prides ourselves on working with our merchants to provide the the ideal financial package. Unlike most funders and brokers who look to maximize their return. At DMF, Barry Sharf formulates the financing that will help your company achieve its goals at the lowest possible cost and only provide financing if we believe we can get you where you need to be.
#2 – How does a Cash Advance work?
Unlike a traditional business loan – which is often paid back monthly, over years and is based on an interest rate— a merchant cash advance is typically paid back daily, over months and is based upon a predetermined and agreed upon factor rate which calculates how much Discount Merchant Funding (DMF) will purchase a percentage of your future receivable/revenue for which is referred to as an “advance”.
Upon reviewing a company’s credentials (SIC Code, time in business, monthly sales, etc.) we provide a series of offers that we feel best suit that company’s current standing. Generally, the process includes speaking with the potential merchants ownership/CHO, and at times visiting them at their place of business. Once we mutually agree to terms, we can fund you that day.
#3 – A simplified example of a Cash Advance:
Upon evaluating your file, our company sends you an offer(s) within hours. The offer is as follows:
We will Advance you $100,000 at a factor rate of 1.20, over the course of 7 months. Meaning, we will FUND you $100,000 and over the following 7 months, you will pay back $120,000 via small daily payments.
#4 – How long does a Cash Advance last?
A Cash Advance can very in time, however think of us as a short term partner. Generally, an advance will last between 3 months and 12 months.
#5 – How much money can I receive?
Our diversified platform allows us to advance companies anywhere from $10,000 to $1 Million. Nevertheless, at Discount Merchant Funding (DMF), Mr. Barry Sharf provides what we feel is ideal for your company at the moment.
#6 – What are Typical uses of Funds?
- Working capital
- New business or projects
- Equipment Purchases
- Expansion or renovation of company location
- Inventory purchases
#7 – What if I’m having Trouble paying back my Advance?
If a cash advance is put together properly there should not be many problems. However, at DMF, we are not a mammoth financial institution that has no heart. We understand that problems can come up we pride ourselves on working together with our customers to help them.
#8 – What if I need more money?
Discount Merchant Funding (DMF) is always available to provide additional capital when necessary as a renewal or when qualified as part of our Ad-On program. The Ad-On program allows you to extend your contract with us, without having to pay off your current advance.
Got any more questions, concerns, or comments about merchant cash advances? Barry Sharf will love to hear about Merchant Funding and Cash Advance from you. Contact us!