Business Funding for Merchants

Cash flow tends to arrive in a different order than expenses. You buy inventory in March and sell it in May. You hire staff before the summer rush and get paid after it. Even healthy businesses sometimes need working capital to bridge those gaps, and card-accepting merchants often find that their processing history opens options others do not have.

To be clear, Merchant Credit Card Processing Services LLC (MCCPS) is a payments company, not a lender. When a merchant needs funding, MCCPS refers them to Fidelity Funding. This page explains common structures and what to think through before borrowing.

What MCCPS does and does not do

MCCPS sets businesses up to accept payments. It does not make loans, provide advances or decide funding terms. A referral to Fidelity Funding is an introduction, and any decision about approval, amount, price and repayment belongs to the funding company.

That separation matters. You should read the funding documents carefully, ask questions and, where appropriate, consult your accountant or attorney before signing anything. Nothing on this page is financial advice or a promise of approval.

If a funding company or anyone else calls you promising guaranteed approval, be cautious. Legitimate providers explain terms plainly, give you time to review and do not pressure you to sign the same day.

How working capital options differ

Funding comes in several shapes. A traditional term loan has a fixed repayment schedule and an interest rate. A line of credit lets you draw as needed. A merchant cash advance, commonly abbreviated MCA, is structured as a purchase of a portion of your future sales, with repayment often tied to your revenue.

These structures can feel similar at signing and behave very differently afterward. Terms, costs and legal treatment vary, so compare them on total cost and repayment mechanics rather than headline numbers.

• Term loan: fixed schedule and interest
• Line of credit: borrow and repay as needed
• Merchant cash advance: purchase of future receivables
• Equipment financing: secured by the equipment

Understanding the cost

Funding is often quoted using a factor rate or a fee rather than an annual percentage rate, which makes comparisons hard. Hypothetically, if a business receives $20,000 and repays $24,000 over six months, the extra $4,000 is the cost of the money. Convert it to an annualized figure to compare it with other options.

Ask for the total payback amount, the payment schedule, any fees for origination or early payoff, and how payments change if sales slow down. If a number is vague, ask until it is not.

Also ask whether early payoff earns any reduction. In some structures the total payback is fixed no matter how quickly you repay, so paying early saves nothing. That single detail can change which option is truly cheaper.

How repayment can affect your processing

Some funding is repaid through a fixed share of daily card sales or through scheduled bank debits. That can change how much of each day's deposits reaches your bank account. It affects cash flow planning, especially in slow weeks.

Tell the funding company about your processing arrangement and check whether the agreement restricts changing processors. If you plan to switch, our guidance on contracts and migration is worth reading first.

Hypothetically, if 10% of each day's card sales goes toward repayment, a $3,000 day sends $300 to the funder before you see the rest. A slow week lowers the payment, which can feel flexible, but it also stretches the timeline, and the total owed does not shrink.

Before you take funding: a checklist

Start with the purpose. Money for inventory that will sell, equipment that increases output or a proven marketing campaign is easier to justify than money to cover chronic losses. Confirm that you can make the payments in a slow month.

Compare alternatives, including improving cash flow by faster deposits, trimming processing costs and collecting overdue invoices sooner. Next-day funding on card sales and payment links on invoices can free cash without borrowing at all.

Document the plan in writing, including the date you expect to be free of the obligation. A funding decision made with a clear exit in mind is usually a better one than a decision made in a hurry.

1. Define exactly what the money is for and how it pays back
2. Calculate the total cost and the payment schedule
3. Check how repayment interacts with daily sales
4. Read prepayment, default and processor-change terms
5. Have your accountant or attorney review the agreement

Cutting costs as an alternative

Sometimes the cheapest capital is money you already spend. If your card processing costs run at 3.1% on $40,000 a month, that is $1,240, and a compliant program such as Zero Processing Fees, rules varying by state and card network, may reduce that cost. Savings depend on your statement review, and no outcome is guaranteed.

A free, no-obligation statement analysis from MCCPS reviews two months of statements line by line. Even modest improvements in processing cost and deposit speed can reduce how much outside funding you need.

Next steps

If you would like an introduction to Fidelity Funding, call 844.826.6227 and ask for a referral. A specialist can explain what information will be needed and what to expect, and can review your processing at the same time.

Remember the key point: MCCPS is not a lender and does not guarantee approval. Take your time, compare options and read every document before you sign.

This article is general information, not legal, tax or compliance advice. Card-network and state rules change — confirm current requirements before acting. Savings depend on your individual statement analysis.