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Comparison Scenarios

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Jerry H - Jerry’s Automotive


“Accessing a loan that was hassle free was important to me. MBC’s process was easy and it did not bog me down in paperwork. My next loan will be with Metropolitan Business Credit.”


Jerry H. had the chance to expand his automotive garage by adding additional services, and with Jerry’s budgeting it made it easy for him to identify the capital that was needed. First he checked with his bank, however due to the tightening of credit he was denied. Not wanting to pay the high costs of a merchant cash advance or changing credit card carriers, he applied for a loan thru Metropolitan Business Credit. Jerry was happy with the limited amount of paperwork that was needed. He completed his paperwork and had an answer within 3 days. The money Jerry received allowed him to buy the needed equipment and expand his business. Something that was important knowing the addition of other services would help the business with better cash flow for the future. Jerry plans on applying again once his loan is paid off, thanks to the hassle-free debit repayment system.


Benefits to Jerry H.

Simple, no-fee application Fast Funding
An alternative lending source to traditional banks
Automatic repayment system
No Bank Loan Headaches!


Jennifer L.

Was looking for financing to build another store next to hers. Jennifer had come across Merchant Cash Advance companies but was not comfortable with changing her credit card processor nor was she interested in the rates they were charging. When Jennifer met with a Metropolitan Business Credit representative she was reluctant as to the type of loan she would receive and the amount of time for approval. What she found out was the process was simple and the loan was available in only 7 days like she was told. Although the rates were higher than a traditional bank, she was happy with the easy free payment plan and the ability to pay off the loan early. Jennifer is now expanding her business.


Trent G.

Needed cash for his business but he didn’t accept credit cards. He knew a cash advance from a merchant processing company would not work, yet he still needed a loan. Fortunately Trent found a representative from Metropolitan Business Credit and applied for a loan. With his 2 years of business operations and an easy application process Trent was able to secure funding for his business. Trent’s cash infusion is already paying off and Trent is planning on reapplying again 9 months from now. Metropolitan Business Credit was able to provide an alternative source of funds that was needed for his business.


MBC / Cash Advance Comparison

MCA = Merchant Cash Advance

Real loan conforming to regulatory requirements Product Cash advance predicated on theory of factoring future receivables
Selective approval process Approval Emphasis on 90% approval Good customers subsidize bad customers
Priced to risk, 1/3 to 1/4 the cost of a MCA Pricing Universally high (140-200% APR) pricing
Less than 10% of credit card volume Repayment Ratio 18 - 30% of bankcard volume
Funding advisors, financial institutions Distribution Merchant level sales people
12 months for most clients Term 6 month standard
No need to switch merchant processing Merchant Processing Must switch processing; disrupt cash flow
Set price, easy to understand daily collection from the business bank account Collection Fluctuating percentage of credit card volume intercepted at the merchant processor
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