An ACH loan is something that is talked about in the processing industry, but many merchants are not familiar with the process. They may hear the term “loan”, and fear a bank loan and all of its damaging aspects. However, an ACH loan is in a whole other realm than a bank loan, and that is a good thing for you, your customers, and your future credit. Below are some key aspects of an ACH loan.
An ACH loan, such as the one offered by FAM, is considered a “bank only” loan, because you can use it as a funding option even if you do not have a merchant account. A “bank only” ACH loan is available to those with only a bank account, and funds are taken from your account at the end of the workday. Your approval is based upon your gross monthly sales that run through your bank account.
Qualifying for an ACH loan is also easier than a bank loan. While bank loans typically look for great credit and enormous collateral, an ACH loan looks at more attainable objects: A 500 FICO score, gross receipts of $10,000, a NSF of 3 or less, and a business existence of 6 months. If you have those four things, you can qualify for an ACH loan. Also, application is much easier than a traditional bank loan. Instead of years of tax returns, receipts, and background snooping, you simply need a few on-hand items. You will need 3-6 months of business bank statements, a copy of your driver’s license or state ID, a copy of a voided business check, and a copy of your landlord agreement (if you are a renter). These are things that every merchant has in his or her office, and they should be easily located. You can obtain your funding is as little as 5 business days, as well.
An ACH loan is much simpler than one may think. Merchants, whether they have good credit or bad credit, should look at this option when they are in need of business funding. The process is quick and simple, and you pay back your loan at the end of each business day. Few things are simpler in the business world.