Is this a loan?

MSD is NOT a lender. We buy a percentage of your future card sales, commonly referred to in our industry as "future receivables."

Let's look at an example: If MSD buys future Visa, MasterCard and Discover card sales from Acme Auto Supply, after the funding is received by the merchant, MSD will gradually deduct scheduled payments from Acme's card sales. There are no monthly billing statements, no invoices, and no payment coupons for Acme to review, and no checks for Acme to write – the payment happens automatically.

What is the maximum funding amount?

MSD's minimum funding amount is $5,000 and the maximum amount is $250,000. The amount MSD will fund for your business depends upon the average monthly card sales for your business, as well as the strength and creditworthiness of your business.

How much of my daily card sales are deducted?

Once the purchase price, total amount to be purchased, and estimated payment period have been determined, MSD calculates a daily payment amount required for the amount of Visa and MasterCard and Discover receivables sold. After your business is funded, automatic, small deductions are made from your daily card sales.

I've been turned down for a loan by my bank, will MSD be able to help me?

Unlike banks, Sterling is not a "traditional" financial institution lender. Sterling is often able to enter into a receivables purchase transaction for businesses that banks would not lend to. MSD is more flexible than banks in terms of the types of business it will work with, the purpose for which the funds will be used, and in some cases, the credit history of the business and the owners of the business.

There are some problems with my credit, can I still get help from Merchant Services?

Unlike banks, MSD has greater flexibility when it comes to reviewing past credit experience. We do not enter into transactions with merchants who are currently (or about to become) involved in bankruptcy proceedings. But, credit problems in the past can typically be overcome by a demonstration of current business strength accompanied by a strong likelihood of continued good business trends.

Are my business plans too unusual for MSD?

Again, unlike banks, Sterling does not have a "fixed" notion concerning how you will use your funding proceeds. Generally, we work hard to understand the underlying business plan and the unique features of each business. If your plans make good business sense, it's entirely possible that we will be able to fund them.

What happens if my sales slow down or speed up after funding occurs?

At the time funding occurs, we schedule a deduction from your daily Visa and MasterCard sales that is calculated as a percent of daily transactions. The percent is fixed, the amount of the payment is not. Generally, therefore, when sales slow, the dollar amount of the deduction is reduced, while when sales increase, the dollar amount of the deduction is increased.

Is this a one time only program?

MSD is pleased to provide repeat transactions with our merchants. Our experience has demonstrated that when the growth triggered by one working capital transaction occurs, the strategy of your business may change, triggering a new need for working capital. Growing your business is our business.