Partnership Provides Businesses with Flexible Funding Solutions

In wake of COVID-19, many businesses are finding that they are in dire need of working capital to help keep their doors open. While the government is offering several relief programs and banks are lending money, in many cases, funding is slow to obtain and difficult to qualify for. As a New Jersey-based locally owned payment processing company that provides credit card processing services to a wide range of businesses, especially small businesses, Priority Payments Local understands the frustrations businesses have not being able to obtain the funding they need in the timeframe they need it. As a result, the company sought out a funding partner that would be able to provide merchants with a solution.

“In our search for a funding partner, it was imperative that we work with a company that has a culture and values that aligns with ours,” said Angelo Mendola, President and Chief Operating Officer of Priority Payments Local.

“After a long vetting process, we selected Libertas Funding and feel confident that they will meet and exceed the expectations our merchants have,” he added.

The type of funding being offered are merchant cash advances (MCA) - a form of short-term financing that is paid off in exchange for a percentage of future card processing sales.

The MCA Funding Process at Priority

In order to qualify for an MCA, merchants must be processing payments with Priority Payments Local then follow this six step process which typically takes between 24 and 48 hours to complete. (Prospective merchants can apply for processing with Priority at any time to be considered – the program is not restricted to merchants who have been processing with Priority for several months or more).

1. Application

Once a business applies for a cash advance, Priority will perform a background check which includes: assessing credit, completing a background check, and analyzing risk. Libertas then receives the business’s tax ID number, bank statements, applicant’s social security number, and information about the business.

2. Offer

If approved, Priority will make an offer based on a purchase price for receivables expected (called a Right to Receive or ‘RTR’) to be paid back based on what the business needs/requests and is able to afford.

The RTR is calculated as an advance multiplied by a factor rate (e.g., 1.2-1.4). The RTR/ amount repaid is the funded amount multiplied by the factor rate.

3. Agreement

Once the amount and terms are agreed upon between the merchant and Libertas Funding, a contract is sent to the merchant. Libertas also sends the merchant a description of the additional information needed to finalize its due diligence.

4. Review

When the merchant signs the contract and sends the information requested, Libertas reviews all documentation as part of its final due diligence. That documentation includes: financial statements, tax returns, financial data, and so on. Libertas then speaks to the merchant about its business and asks any questions it may have regarding the merchant’s business, background, or financial condition.

5. Verification

As part of the verification process, three steps are followed:

1. All information is double checked for accuracy.

2. Libertas conducts additional UCC and background searches.

3. Bank account and other verification steps are conducted.

6. Funding

The final merchant funding call is conducted prior to funds being released.

State of the Pandemic: Industries That Are Applicable for Funding

Due to the current state of the economy with COVID-19, the following industries are applicable for this funding program.

· Healthcare

· Restaurants that are open and operating

· IT, Software Services, and other Technology

· Wholesale distributors for food and other essential products

· Auto Repair

· Manufacturing

· Gas stations that have separate processing for their store

· Convenience and Grocery Stores

· Certain specialty trades such as electricians, plumbing, and HVAC

· Transportation and Logistics

· Hardware Stores

· Online Retail

· Military Contracts and Supplies

· Other companies that are deemed essential

For additional information or to apply, merchants are encouraged to contact Priority’s Sales Team at sales@pplocal.io or 800-717-1250.

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Priority Payments Local is an award-winning payment technology and merchant services provider that’s headquartered in Red Bank, New Jersey. As a leader in the industry, Priority provides merchants across the United States with the ability to accept all forms of payments, streamlining the way they accept and deliver payments. The most popular form of processing merchants rely on is accepting credit cards through POS systems, virtual terminals, or payment terminal machines. | pplocal.com

Libertas Funding is a financial technology firm specializing in providing capital for small businesses. The company has over 100+ years of combined funding and credit expertise that allows them to provide their clients with the optimal funding solutions to grow their businesses. In addition, they view each business uniquely instead of putting each one through the same model — adjusting to the needs of each business they work with. | libertasfunding.com