Question & Answer

What Kind of Fees Are There?

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.

How Do I Get Additional Money for My Business?

If you currently have a merchant cash advance from Principis Capital (or you’re a returning customer) and your business is continuing to function as usual, you’re probably going to be eligible to receive additional funding from Principis. We value the close ties we forge with our merchants. So, how does the renewal process work?

When to Get Additional Funding

Business costs can crop up unexpectedly, and sometimes it catches owners unprepared. One question merchants often ask us is if they’re able to take out a second advance while they have one currently open. The answer to that is absolutely! As early as 60 days after your first advance, so long as you’ve paid down around 60% of your current advance and there hasn’t been deterioration in your business, you’re able to get additional funding from Principis Capital. Like your first advance, the amount of money you’re eligible to receive is based on your business’ performance.

We also have a number of different programs available that our Sales team would be happy to explain.

What Makes Our Process Better

There are three major advantages an additional merchant cash advance from Principis Capital has over the competition:

  1. Faster ApprovalBecause we already know your business, the credit review and approval process for additional funding is much faster than for your initial advance. Most of our renewals take just 24 hours from application to funding.
  2. Preferred Pricing and TermsA benefit we offer our well-performing merchants is preferred programs. Businesses that renew with Principis may be offered lower pricing and/or more capital. Oftentimes, once we’ve gotten to know you and your business, we can reduce the retrieval percentage on your renewal advance to make repayment even easier.
  3. Get All the Cash You’re Approved For, No Underhanded TricksOne bad tactic that some other firms use is to pay off your existing balance with the new money you’re supposed to receive. Say for example you had a current balance of $10,000 and took out an additional advance of $20,000. Instead of getting the $20,000 you need, they would deduct the $10,000 you owe but charge you for the whole amount. Principis Capital does not engage in this behavior. When we approve you for a certain amount, that is the exact amount you will see deposited in your bank account. No fees, no tricks. That’s just good business.

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What Sort of Money Can I Get From Principis Capital?

Principis Capital can help your business get the funding it needs. What sort of funding do we offer? Here are the answers to some commonly-asked questioned by our merchants.

How much money can I get?

Approvals are based on average credit card processing. Most merchants can get between 1 and 2.5 times their average monthly credit card sales.

When do I have to pay it back by?

There is no specific length of time during which you are required to remit credit card sales to us. A merchant cash advance does not have a “term”, since we collect the purchased credit card receipts as a percentage of your daily credit card sales. Therefore the amount we collect varies from day to day. With most of our clients, Principis collects the purchased amounts within 8 to 12 months. However, some take longer and some take less time. It is all driven by the ups and downs of your sales.

How long term a loan can I get?

A merchant cash advance is not a loan, and does not have a fixed “term”. Principis buys a specific amount of future credit card receipts, and collects them by taking a percentage of your daily credit card sales. With most of our clients, Principis collects the purchased amounts within 8 to 12 months. However, some take longer and some take less time. It is all driven by the ups and downs of your sales.

What happens if it takes longer than expected for me to repay the advance?

Since there is no fixed term to the advance, there is no issue with taking less or more time to generate the credit card sales that will repay the advance. If your sales go up, Principis will collect the receipts faster, and if they go down, we will collect them more slowly. However, it is important to remember that the agreement you sign with Principis specifies that while you have an outstanding receipts balance with us, you will not take actions to divert credit card receipts away from us, such as discouraging your customers from using credit cards, or changing your credit card processing company.

Do you offer fixed daily payments?

Yes.  We have a Flex-Defined program that allows for anticipated daily payments. You can read all about it here.

If you have more questions, please contact us!

How Do I Get Funding From Principis Capital?

Getting funding for your business from Principis Capital couldn’t be easier. Here are a few common questions we get asked by merchants:

How much money can I get?

Approvals are based on average credit card processing.  Most merchants can get between 1 and 2.5 times their average monthly credit card sales.

When do I have to pay it back by?

There is no specific length of time during which you are required to remit credit card sales to us.  A merchant cash advance does not have a “term”, since we collect the purchased credit card receipts as a percentage of your daily credit card sales. Therefore the amount we collect varies from day to day. With most of our clients, Principis collects the purchased amounts within 8 to 12 months.  However, some take longer and some take less time.  It is all driven by the ups and downs of your sales.

How long term a loan can I get?

A merchant cash advance is not a loan, and does not have a fixed “term”. Principis buys a specific amount of future credit card receipts, and collects them by taking a percentage of your daily credit card sales. With most of our clients, Principis collects the purchased amounts within 8 to 12 months. However, some take longer and some take less time. It is all driven by the ups and downs of your sales.

What happens if it takes longer than expected for me to repay the advance?

Since there is no fixed term to the advance, there is no issue with taking less or more time to generate the credit card sales that will repay the advance. If your sales go up, Principis will collect the receipts faster, and if they go down, we will collect them more slowly. However, it is important to remember that the agreement you sign with Principis specifies that while you have an outstanding receipts balance with us, you will not take actions to divert credit card receipts away from us, such as discouraging your customers from using credit cards, or changing your credit card processing company.

How long will the process take?

With Principis, you can get pre-qualified in 24 hrs. With our fast approval processes, most merchants can get funded within 7 days.

What documents do I need to provide to get approved?

The following documents are necessary to get approval:

      1. Signed application
      2. Records of your 4 most recent months’ processing
      3. Your business’ 2 most recent monthly bank statements

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Do You Work With Home Businesses?

A lot of successful small businesses have very humble beginnings. Apple was started in a garage in California. Entrepreneurs like starting home businesses because it lets them enter the market without requiring as large an investment as some other enterprises. With so many business transactions moving online, it certainly seems like we’ll all be working from him in 10 years!

But there is a danger that comes with home businesses. The low barrier of entry means lots of people try their hand at business ownership — which is good — but it also means that many more businesses are unlikely to survive. A home business is convenient, but it is also impermanent.

While we are excited to work with small businesses in a wide variety of industries, Principis requires that you have a separate brick-and-mortar location associated with your business, whether that is a retail store, a manufacturing location, an office, a warehouse or another facility.

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