Resource Option

Many companies already have bank lines, pledged their assets, and even used their owner's homes as collateral. Now, they can leverage one more asset to increase working capital: future credit card sales. This is a relatively new concept. It was introduced about ten years ago to provide funding for restaurants. Although there have been many success stories, the product has often been viewed as a method of last resort because of the high cost and short payback period.

Resource Option has taken this concept, leveraging future credit card sales, and applied long standing asset based lending principals. In this way, we are able to provide larger loans, to more credit worthy clients. This is a modern innovation in working capital. We are able to lend funds to you by using your credit card sales as an asset.

Is it a loan, or a purchase of assets?
Resource Option lends money; we do not purchase your assets in advance. We can do this because our loan rates do not violate federal banking regulations. We have the lowest rates in the industry. Our rates are comparable to the Federal Reserve rates and the average merchant is approved in 7 business days. Loans have significant tax advantages over cash advances. To see how much interest you are paying on a cash advance, please use our rate analyzer

How Much Can You Get?
All programs are customized to meet individual client needs. We typically lend up to one month of your average credit card sales. This means that if your company has annual sales of $12 million through Visa and MasterCard, Resource Option can advance up to $1 million. Because we are asset based lenders, we can review your other assets and perhaps increase the size of any loan.

How Do You Pay It Back?
You will pay back a small percentage of your credit card sales out of your operating bank account on a daily basis. There is no need to change processors. Alternately, Resource Option can set up a lockbox for your company at a large national bank. The proceeds from the lockbox will go to Resource Option and then get sent back to your operating account. A portion of each credit card sale will be used to repay the initial advance. You will not have any borrowing base, coupon book, or monthly payment to remember.

How long is the payback period?
We typically structure our loans to get paid back anywhere from 6 months to 2 years. This will represent a small percentage of your credit card sales.

How much does it Cost?
We charge rates that are comparable to the Federal Reserve rate. Rates are based on the term of the loan. Most importantly, our rates are competitive with other forms of financing. Because our rates are low, and the payback period extended, we solve your cashflow needs with out creating new problems.

Do I have to change my processor?
We may be the only merchant advance company that permits you to keep your processor. However, if you would like to change processors, we have relationships with several of the largest and best processors, who will either meet or beat your current rates and level of service. Nevertheless, we appreciate your loyalty to existing relationships and would like to be part of it, not replace it.

What can I use the funds for?
You can use it for any purpose. Typically, our clients use it to add to working capital for expansion, seasonal needs, renovation, inventory purchases etc.

What if I already have bank financing?
We can work with your bank lines so that this is a complement to, not a replacement of your existing financing.

Other merchant advance companies stress that this is not a loan. Why is that?
It might be because they don't want anyone to understand how much they charge. There is the possibility that their high rates violate federal banking regulations concerning loans. Classifying an advance as a “purchase of assets” avoids potential legal issues regarding usury laws. It has been our opinion that if you receive money and expect to pay it back, plus some additional cost, within a period of time, then it does not matter what you call it; it is a loan.

Are there any tax advantages?
Yes there are tax advantages to taking out a business loan. We recommend that each merchant speak with their accountant for specific details.

How long does the process take?
Our due diligence is usually completed within 24 hours. However, because we need to coordinate with your processor and bank, the funding usually takes between 5 and 10 business days.

Can I get additional funding after I close with Resource Option?
Yes. Most clients qualify for additional funding after they have paid down their original loan by 50%. Some clients use this facility like a revolving loan.

Size
We provide financing for much larger businesses than other merchant finance companies. We target companies whose credit card revenue exceeds $2 million per year. Our loans start at $500,000 and go up to $3 million. Most other companies reach their top limit where we begin.

Rates
Resource Option has the lowest rates of any merchant finance company. Our clients use us as an addition to, or perhaps instead of, bank financing. Knowing this, our rates have to be competitive. We invite you to use our rate analyzer to see exactly what you are currently paying, or have been quoted by others in the industry. We are sure that our rates are lower.

Transparent Pricing
Resource Option will explain our rates in detail. Other finance companies may avoid this discussion. We will try to educate you so you can make better informed decisions. Once you see what other merchant finance companies charge, you will thank us whether or not you become a client.

Customized Client Programs
We know that each client is different. You are in different industries, have different financial backgrounds and have different goals. We look at each client individually and tailor a program to meet your needs. Upon understanding your business, we then develop a transaction involving both an agreed upon rate and payback period. We know that it would be impossible to fit you into a preset program.

Easy Renewals
Once your loan is paid down by 50%, you will qualify for a renewal at your option. Unlike other programs, you only pay for the additional funding, not for the cost of an entirely new funding. For our clients that continually renew, this can prove to be a huge savings.

Lowest Payback Rates
Our programs extend out to two years. This is longer than any other competitor and allows for the lowest payback rates in the industry. Your payback period will be determined as part of our overall customized initiatives.

No Delays or False Promises
Resource Option is structured without bureaucratic layers. Top management is always available to discuss and understand individual needs. Decisions are made quickly.

Asset Based Lending Approach
We view your credit card receipts as only part of your financing solution. Because of our broad lending background and affiliation with Entrepreneur Growth Capital (“EGC”), we are able to review your entire financing needs and perhaps provide additional working capital. EGC is one of the leading asset based lenders specializing in small to mid size companies. EGC provides loans against accounts receivable, inventory, equipment and real estate. We look at the entire package to see how we might be able to meet more than your credit card needs.

Experience
Most of our managers have been lending for well over 15 years. Combined, we have over 100 years of experience. We have provided working capital to thousands of businesses in dozens of industries. We have been in this business longer than our competitors and have a more lasting commitment to both the industry and our clients.