Why Savvy Entrepreneurs’ Choose
Painless Business Funding
The simple answer is because they need quick cash, emergency financing, or a bridge loan and they need it yesterday. This usually happens when a business needs money to purchase additional inventory for growing sales. It also happens when there is great opportunity to benefit from but it requires more capital than readily available. Or, when a company has a high return on investment from a marketing initiative and additional funding would provide a critical boost to those sales. Painless Business Funding is set up to accommodate these quick and urgent needs for money. It’s simple, easy, and hassle free especially for Painless Processing merchant account holders because they are pre-approved. It gives businesses the financing they need without having to go through the extensive and time-consuming process you would typically experience when trying to get the funds from a bank or corporate lending institution.
What makes Painless Business Funding different?
| Funding Program Aspects | Bank Business Loan | Painless Business Funding |
|---|---|---|
| Collateral Required | YES | NO |
| Underwriting Process | LONG | SHORT |
| Subject to Audits | YES | NO |
| Spending Limitations | YES | NO |
| Painless Merchants Pre-Approved | NO | YES |
| Flexible Repayments | NO | YES |
| Credit Check | YES | NO |
Bank Business Loan
The application and approval process for a business loan from a bank is longer and harder than it used to be. For a business loan to be underwritten you need to have several things: good credit, sufficient collateral, good history, financial statements (both business & personal), and if you have all of that it could take weeks or even months for approval. Furthermore, all of that probably won’t matter if what you sell is considered high risk.
Painless Business Funding
Painless Business Funding isn’t a collateralized loan, doesn’t require lengthy underwriting, credit reporting, audits, spending limitations, or carries concern over high risk. And, if you have a Painless Processing merchant account, you are PRE-APPROVED and can get the capital you need to fund your business in three (3) business days or less.
How does Painless Business Funding work?
Painless Business Funding provides a quick and direct capital infusion based on the average monthly dollar amount of credit card sales your business transacts. There are four (4) tiers to Painless Business Funding:
Tier 1
30% of your monthly processing revenue
All Painless Processing Merchants are APPROVED – No Questions Asked!
Tier 2
50% of your monthly processing revenue
All Painless Processing Merchants are APPROVED with 3 consecutive months of clean credit card processing history.
Tier 3
100% of your monthly processing revenue
All Painless Processing Merchants are APPROVED with 6 consecutive months of clean processing history and corresponding bank statements.
Tier 4
More than 100% of your monthly processing revenue
Requires 6 consecutive months of clean processing history, corresponding bank statements, and 2-years business financial statements or tax returns.
Painless Business Funding does cost more than other forms of financing because it’s non-collateralized and the approval process is incredibly relaxed in order provide funding in days as opposed to weeks or months. And, because we guarantee approval it significantly raises the risk to us as the funding party. However, our fees can be as much as 2,000 basis points less (for well qualified merchants) than other lenders providing a similar service. Every merchant is evaluated on an individual basis and your merchant services agent will be able to provide an exact rate for your business.
If Painless Business Funding costs more than a bank loan, why should I use it?
That’s Simple! The biggest reason is because Painless Business Funding is easy to get; you don’t need to provide much, if anything at all. And, it’s fast. You can have cash in your bank account to spend on whatever you feel you need to support the growth of your business in a matter of days. If you’re experiencing rapid growth of have a time sensitive opportunity; the time and red tape you need to go through for a bank loan will cause more harm than good. You can also turn over and be refunded multiple times in the time it takes to get approved for a business loan.
HERE’S A GREAT EXAMPLE
Let’s say you get an order from a customer but your inventory is low and your current financial situation doesn’t allow you to order the amount of goods you need to fulfill the order. There is usually a time limit to when these orders need to be delivered and going through the bank to get the loan won’t work for any one of a multitude of reasons. But, your business makes a 50% gross profit on the goods you sell. Your Painless Business Funding costs are around 20% so your business still makes a 30% profit on the order. Being able to fulfill the order and realize a profit increases both your top and bottom line. This makes Painless Business Funding worth it every time.
| Painless Funds You | Revenue from Sold Products | Gross Profit from Sold Products | Minus Costs Associated w/ Painless Business Funding | Gain Recognized from Utilizing Painless Business Funding |
|---|---|---|---|---|
| +$100K | +$200K | +$100K | -$20K | 1 Happy Merchant + 1 Happy Customer + $80K |
If you want to translate this into numbers; your cost of goods is $100,000 dollars. Painless Business Funding gives you that $100,000. From the sale of the goods you bring in $200,000. Your gross profit is $100,000. Your loan and fees are $20,000. You fulfill the order and the business makes $80,000.
NEVER TURN DOWN AN OPPORTUNITY TO PROFIT AS LONG AS IT MAKES YOU MORE THAN THE COST OF CAPITAL TO FUND IT!
How do I pay back my Painless Business Funding and how long does it take?
HERE’S A GREAT EXAMPLE
If your payback percentage is 10% of each batch and you process $1,000 dollars in credit card sales for the day; $100 dollars automatically transfers to pay down your loan before it hits your bank account and the remaining $900 dollars goes into your bank account.
Painless Business Funding falls into the category of short-term business loans. They a have payback period ranging from 3 months to 1 year with the average loan being paid back in the 6 to 9-month range. However, if you were to need a time extension beyond one year our team will work with you on extending the duration of the note so you can continue to operate with peace of mind.
What if I need more funding?
Painless Business Funding was set up to accommodate the needs of growing businesses. Once more than 50% of the outstanding note and fees are paid back you are automatically eligible to re-advance the note similar to the way a revolving credit line works. This can be done by making a simple request to your dedicated merchant services agent.
Likewise, if a business already has funding but sees a dramatic increase in sales and needs further funding; our team can reevaluate your position and increase your loan amount accordingly.
How do I apply?
For businesses that already have a merchant account with Painless Processing, you’re Approved! We already have all of the information that pertains to your credit card processing and we perform the leg work to get you the funding you need. All we need from you is to execute a quick form that defines the terms of our funding.If you don’t already have a merchant account with painless processing, don’t worry! We can still approve you as long as you currently have an active merchant account, but we will need you to complete an application and provide us with some supporting financial documentation. However, you should also inquire about switching your merchant account to Painless Processing because we can most likely provide you with bundled cost savings on your merchant account processing fees.