FAQ

FAQ 2017-09-29T18:41:44-04:00
What is a Merchant Cash Advance? 2016-02-25T17:30:25-04:00

A Merchant Cash Advance is a flexible working capital option that allows small businesses to access cash now by selling a portion of their future credit card sales or deposited receivables.

What is the difference between split funding, ACH, and Lockbox? 2016-02-25T17:30:31-04:00
  • Split funding is the normal cash advance payback structure where a small portion of your batch amount is transferred to the cash advance company directly from the processor bank.
  • Lockbox is offered for merchants that do not process with the below processors. With this program, the entire batch amount is transferred to the lockbox and you receive your funds from the lockbox after the cash advance company gets their portion of the batch amount.
  • ACH is offered where a fixed amount is withdrawn from your account everyday towards repayment of your cash advance regardless of the amount you processed. This payback structure is usually used for Loan programs. Payments are typically drawn Monday through Friday, No weekends and No holidays.
Do I have to switch my credit card processor? 2016-02-25T17:30:14-04:00

This may be necessary depending on the funding source.

If I have to switch my credit card processor, will I receive the same low rates as my existing credit card processor? 2016-02-25T17:30:08-04:00

Yes, current processing rates are typically matched and at times lower.

How much money will I be eligible for? 2016-02-25T17:30:04-04:00

The criteria to determine the total cash advance amount depends on a number of factors including the type of business, monthly credit/debit cards sales volume, the funding company etc.

How long do we have to have been in business to qualify? 2016-02-25T17:29:58-04:00

We can help you get funding.

What if I have bad credit? 2016-02-25T17:29:53-04:00

Bad credit will not make or break a deal with Robinwood Capital. Our in house lending team does not have any FICO requirements so we can fund you with bad credit.

How fast can we get funded? 2016-02-25T17:29:47-04:00

You can be funded in as little as 24-48 hours, in some cases we may be able to offer same day funding.

Do I need collateral? 2016-02-25T17:29:42-04:00

The working capital provided is an Unsecured form of financing meaning Collateral is not needed.

What is a “re-up” or “add-on”? 2017-09-29T18:41:49-04:00

Merchants who are qualified for an initial funding are typically eligible for a second funding which is called a re-up or add-on based on your current balance as well as any increase or decrease in revenue from that last installment that was made.
With our In House lending program we are able to provide additional working capital to our clients on to the back end meaning they will never need to sign a new contract, supply additional paperwork other than current bank statements, or pay any fees.

What is EMV? 2016-02-25T17:29:06-04:00

EMV stands for Europay, MasterCard, Visa—the three companies that created a global standard for credit and debit card acceptance. This standard is now adopted by all major brands including American Express, and Discover/Diners Club. EMV credit and debit cards have a secure microchip on the front of the card. The microchip adds a new level of security, protecting sensitive cardholder information. During a payment transaction the embedded microchip works in concert with an EMV-enabled terminal to complete the transaction.

How does EMV work? 2016-02-25T17:28:59-04:00

During a payment transaction the secure microchip generates a unique, one-time dynamic code that is used by the card issuer to verify a card is valid. Using a dynamic code during each transaction combats card cloning and skimming since the code can’t be reused to create another transaction. EMV cards can also be used to make contactless transactions while retaining the same level of security.

Why is EMV being implemented? 2016-02-25T17:28:53-04:00

EMV is designed to reduce credit card fraud resulting from lost, stolen or counterfeit cards used in a card present (CP) transaction. EMV is widely deployed in Europe, Canada, and parts of Asia and will become common throughout the U.S. over the next several years.

What is Durbin Amendment? 2016-02-25T17:28:45-04:00

The interchange fee that is supposed to cover the risk of fraud, transactional costs, and other overhead had become a big expense for the small retailers unlike the big merchants who had the power to negotiate. The Durbin Amendment was therefore passed as part of the Dodd-Frank financial reform legislation in 2010 to require the Federal Reserve to limit fees charged to retailers for debit card processing. The rule also allowed non-exempt card issuers to charge a one-cent fraud prevention fee to merchants in addition to another 0.7 percent for fraud prevention already included in the interchange fee.