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March 2022 - Finova Capital

The Secret to Winning and Retaining Merchants? Meet Finova Capital

For today’s ISOs and processors, more product offerings mean a bigger, more consistent merchant base.

There’s one major problem: Traditional off-the-shelf products tend to be generic, costly, and complicated.

Having served over 1 million merchants during my 20 years in merchant acquiring and lending, I’m familiar with those challenges — and the opportunities acquirers need to address them.

That’s where Finova Capital comes in. With a wider range of retention-boosting finance solutions, we’re providing faster ways for ISOs and processors to attract and retain merchants.

A more attractive product offering

The process is simple: Our partners gain access to Merchant CashTap™ — our suite of merchant finance products including equipment financing, merchant cash advances, working capital, and term loans. Each solution gives merchants faster, more flexible access to cash for growing their businesses.

The results are twofold. First, new merchant cost of acquisition decreases as acceptance increases. We take the time to understand acquirers’ and merchants’ goals, then create custom programs that hit those targets — an attractive win-win-win for everyone involved.

Second, merchant attrition drops — and retention skyrockets. Because the small business market is underserved, merchants typically access capital multiple times over their time in business.

Seamless tech to move acquirers forward

Even if these solutions had been available historically, the process of implementing financing products has been a longtime headache for ISOs and processors.

We’re changing that with a robust, easy-to-use platform. Our technology fits seamlessly into acquirers’ workflows with API compatibility, self-serve DocuSign functionality, and intuitive dashboard reporting.

Coupled with our best-in-class scoring capabilities, our solutions enable acquirers to access the upfront revenue and ongoing reoccurring revenue stream to build a strong residual base.  

Built to meet acquirers’ specific needs

These solutions only work when the process and products make sense for acquirers and merchants. That’s where our team’s deep expertise comes into play.

I have 20 years of experience understanding acquirers’ workflows, underwriting processes, and technology blockers. Our scoring models have survived the past two decades’ macroeconomic swings. All combined, our team has 75 years of expertise providing financing to merchant acquirers and the payments industry.

In short, we know what acquirers need to perform. And by leveraging that expertise with modern technology and a positive merchant experience — including sensible pricing and terms, timely servicing, and customized options — we’re excited to be a new kind of merchant finance partner.

It’s past time acquirers had better opportunities to attract and retain profitable merchant accounts and overall portfolios. And we’re excited to provide the transparent solutions and strategic alliances to make that possible.

Find out how Finova Capital can help you win and retain merchants. Visit today.

Bryan Brouillard is Chief Risk Officer at Finova Capital. He has over 20 years of experience in risk, underwriting, compliance, and governance, as well as key operational areas associated with small- and mid-size leasing and lending organizations and payments companies. Prior to joining Finova, he worked at SafraPay, Ascentium Capital, First Data/Fiserv, and American Express.

Top 5 Myths About Merchant Finance Partnerships ­— Debunked

“Offering a financing program for my merchants has been a  gamechanger.” “I lost interest in financing programs years ago — too many bad actors.”

In my many years managing payment and equipment leasing and financing companies, I’ve heard disparate views on merchant finance partnerships.

They run the gamut: Some are true. Many are false. Others are just antiquated. But now it’s time for merchant acquirers to consider what is possible in the new era of fintech providers.

Here are five of the most common misconceptions about business lending and equipment financing — and the facts ISOs and processors need to know.  

1. “My merchants don’t need financing from me.”

The truth: Small businesses need capital — but currently make up an underserved segment of the lending market.

Small businesses — especially restaurants and retail businesses — are usually viewed as higher risk by traditional lenders. The result is they are  often undercapitalized, yet lacking access to capital.

As an acquirer, you already know your merchants’ businesses best. By working with a trusted merchant finance partner, you can help provide the services and products they need to grow and differentiate your own offer in the process.

2. “Giving away free POS terminals is a necessary evil.”

The truth: It doesn’t make sense for most acquirers to give away equipment, assuming the risk of managing items including use tax, property tax, and equipment returns.

From activation and early termination risk to collecting and storing returned equipment, the real cost of “free” equipment adds up quickly for ISOs and processors. It’s easy to provide a free terminal in exchange for processing revenue, but what about the real cost to you?

Most acquirers aren’t equipped for that burden. But the right merchant finance partners will take on the risk of ownership so you don’t have to. They can also offer financing programs at monthly payment options that aren’t obstacles to a sale. Instead of giving away terminals, an experienced partner can help set a price that’s affordable for merchants while generating revenue for you — and freeing you from starting out in the hole.

3. “Onboarding with a merchant finance partner is a long, challenging process.”

The truth: With the right expertise and technology, you can quickly start delivering products digitally. 

It’s important to find a merchant finance partner who understands the payment space, the credit risk of your merchant base, and common issues. At Finova Capital, we’ve channeled that expertise into a seamless digital integration process, security-focused platform, and products that can be customized to specific needs and credit profiles.

That means you can quickly form a partnership — and start delivering products in a way that fits your merchants’ busy schedules.

4. “There’s a reason some lenders have had spotty reputations.”

The truth: The right partner will provide the transparency and support to ease any concerns.  

Along with our updated products and technologies, we’re a new kind of merchant finance partner providing more personalized, more respectful service.

At Finova Capital, we strive to deliver stronger customer care by providing full disclosure of our terms and addressing any issues immediately. Our team takes the time to develop programs that fit your business needs and provide fair value to your merchants, making our products an extension of your value proposition.

5. “It’s almost impossible to get all the lending and leasing services I need from a single source. And the marketplaces that are available make the process more cumbersome.”

The truth: Providing convenient access to those services is one of the things Finova does best.

After serving more than one million merchants since 2004, the Finova team has built a product suite and digital process specifically for the payment space and small- to medium-sized merchants.

No matter where your merchants are in their life cycle, they need convenient access to capital. We strategize with our partners to align goals, then customize a program that meets their growth challenges. 

Get the facts on how Finova Capital can help you win and retain more merchants.

We’re standing by to answer your questions and understand your business goals. Send me a message or call me directly to get started today.

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