One of the main concerns of small business owners who apply for a loan is how much it is going to cost them. Other funding sources use their advances as a way to generate revenue for themselves using fees. But at Principis Capital, we don’t believe in loading merchants with fees. Here are some common questions we get asked:
Are there any upfront fees or charges?
No. Principis does not charge any upfront fees whatsoever. That means that there is no cost to the merchant to be underwritten and find out his or her funding options from Principis. Once Principis has funded the merchant, we simply retrieve an agreed-upon percentage of the merchant’s daily credit card processing in order to collect our receivable over time.
Are there any account maintenance fees?
No. Principis Capital does not charge you any sort of maintenance fee.
Do you charge any penalties if I bounce payments?
No, there are no penalties. An NSF (Non-sufficient funds) fee may be charged to the account to cover any NSF fee that your bank charges us.
Is there any interest?
No. Principis’ relationship with the merchant is a purchase of credit card receivables, not a loan. Therefore there are no charges or fees that “accrue” during the relationship. Instead, the amount of receivables purchased is determined and agreed upon upfront, and that does not change except as Principis collects those receivables.