Split Funding

Split funding is the preferred method of most lenders to collect their return on investment.  When a merchant decides to go with a lender he has three different methods of paying back the advance (depending on the lender and the cash flow situation of the merchant):  Split funding, ACH and Lockbox.  For an in-depth discussion of ACH vs. Lockbox click here. The preferred method of collecting credit card receivables is through the split funding method. ... [Read More...]

ACH vs Lockbox

Many merchants are hesitant to change their processor for numerous reasons.  Maybe they have good rates with their current processor, a long standing relationship with them, or have multiple locations and aren’t interested in complicating things.  An ACH and a lockbox method may be available to merchants depending on the size of the advance and whether the merchant has positive cash flow. In a lockbox advance, the lender creates an additional... [Read More...]