Merchant cash advances (MCAs) are gaining popularity because they’re easy to obtain and provide quick funding. As a result, many MCA funders, like Accord Business Funding (ABF), are available.
However, merchants cannot apply directly to the funder. Its product is only available through its network of Independent Sales Organizations (ISOs). Small business owners interested in an ABF MCA can try contacting the company for a list of partners. You can also work with a merchant cash advance provider that accepts direct applications.
Since only ISOs and brokers can offer the company’s MCA, this lender review will focus on the benefits, drawbacks, and process of partnering with Accord Business Funding. Specifically, we’ll answer these questions and more:
Accord Business Funding is a direct funder for merchant cash advances. Small business owners cannot apply directly for business financing. Instead, the company works with a network of ISOs and partners who offer its MCA product to their small business clients.
The funder offers special incentives and programs for ISO and broker partners. The company is based in Houston, TX, and funds nationwide, but has a penchant for Texas-based deals. If you’re based in Texas, you could benefit from additional perks with the company.
The MCA funder launched in 2013. Its two founders bring a combined five decades of business funding experience.
ISOs can partner with the funder to offer their clients the merchant cash advance product. The company provides underwriting services and directly funds the deal. Partners earn commissions on each deal that gets funded.
Here’s an overview of the company’s product.
A merchant cash advance provides a lump sum of cash to a small business, repaid with a percentage of future sales, most commonly credit card sales. The funding amounts for the MCA range from $5,000 – $150,000. The funds provide working capital to power merchant growth.
It accepts 1st and 2nd positions and works to provide quick decisions. The company doesn’t publish terms, rates, or fees. This is likely because it creates room to negotiate the deal’s specifics with its ISO partners. However, it’s unclear if ISOs can set the terms and costs or if Accord Business Funding sets them.
Either way, the MCA funder offers several benefits to ISOs, including:
The funder does not publish any small business owner qualifications for approval. There are no minimum credit scores, time in business, or revenue requirements.
Again, this is most likely because it wants to create space for its ISO partners to operate. As a behind-the-scenes partner, the specifics of who qualifies and the underwriting process are only made available once you partner with them.
While some lenders, funders, and marketplaces offer a referral partner program in addition to direct applications, this company only works with ISOs and brokers. The company focuses on its relationships with ISO partners since they sell its product. It provides support and resources to help you close more deals.
When you submit a client for a small business loan, the funder tries to return a decision within 2-3 hours. The company’s owners take a hands-on approach in the deals as they understand the quicker they can approve a deal, the quicker you can close it.
To help facilitate your deals, the funder only performs a soft credit pull. It uses DocuSign contracts so that you can complete everything online. It also offers weekly payment options on a case-by-case basis. Most MCAs require daily payments, which can scare off some clients.
As mentioned, the company has an affinity for Texas deals. Per the funder’s website, “We fund nationally but love Texas.” It provides special incentives and additional resources for Texas-based ISOs.
Merchants cannot apply directly for a merchant cash advance. ISOs can start the process of becoming a partner in one of three ways:
Your merchant clients will usually have daily payments, but weekly payments may be possible, as stated. The rates and fees are between you as the ISO and the funder.
The company states it offers 100% commission on renewals. It also has early buy-out programs available.
The MCA funder offers several benefits to ISOs. The company provides a hands-on approach, creating flexibility and agility in each deal. You could potentially get same-day decisions when you submit a client.
The funder performs the underwriting process but keeps you involved the whole time. It only does a soft credit pull and uses DocuSign contracts to help you close quicker.
Small business owners cannot apply directly for a merchant cash advance. The company doesn’t publish any information on rates, terms, or fees. In general, the website is not very informative and lacks transparency.
The MCA product only goes up to $150,000. While that may suit some small businesses, other MCA funders can offer millions.
Pros:
Cons:
Yes, Accord Business Funding is a legitimate merchant cash advance provider.
The company has few reviews, but the available ones are primarily positive. It has a 4.3 out of 5 rating on six Google reviews and a 4.6 out of 5 rating on 29 Trustpilot reviews. It has zero Better Business Bureau (BBB) reviews or complaints.
The positive reviews discuss how easy it is to work with the company. Several users commented on the customer service of the ISO management team. They mentioned how easy, fast, and smooth the process was to get their clients funded.
Negative reviews felt the company’s MCA offers were not very competitive with similar funders. One reviewer said the company’s process was slower than other MCA providers.
The company doesn’t provide minimum qualifications, so it’s difficult to determine if a client will get approved. As an ISO, the only way to know if you can partner with them is to contact the company and get started.
Whether you were denied a partnership with the funder or want to expand your offerings, you could consider other business loan affiliate programs. Working with multiple lenders, funders, and marketplaces can help ISOs and brokers get more offers for their SMB clients.
The UCS business loan affiliate program allows you the offer the following small business loans to your clients:
Accord Business Funding is best suited for highly motivated ISOs who want to offer merchant cash advances and earn extra incentives. In particular, Texas-based ISO could benefit significantly from the company.
If you’re an ISO or loan broker looking to offer a full suite of business lending products, you must partner with other companies. Small business owners looking to apply directly for an MCA, or other financing options, also must look for another lender or marketplace.
Based on the available information, we rate the company at 3.9 out of 5. It has good reviews and may offer some excellent benefits to ISOs. But the lack of transparency and the fact that small business owners cannot apply directly for funding are concerns.
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