Today, we will be cover Part II of “How to Sell Merchant Cash Advances.” Now, if you haven’t read, watched, or listened to Part I, CLICK HERE. Part II will cover the pitch and marketing of a cash advance.
First, you will need to understand the basic core principle of selling merchant cash advances. A merchant cash advance pretty much sells itself. It’s something that either the merchant needs or doesn’t need at that specific time.
There are 2 goals to selling merchant cash advances:
How to Sell Merchant Services in 6 Steps
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1) Find the people who need a merchant cash advance NOW. In my experience, that number is low. Usually there is 1 out of the 15 or 20 merchants who need it. Luckily, it doesn’t take that long to talk to 20 merchants! If you go out into the field and have 60 clients, then you will probably have 3 or 4 people who want a merchant cash advance right now.
2) Getting your name out there as someone who sells short-term working capital. This is extremely important because even though there are only 1 or 2 people who need the cash advance now, there may be 7 or 8 people who will need one in the future. Since you are making a good amount of money on these, you want to make sure that everyone in your community knows you have them. You don’t want one of your clients to go to a competitor for a cash advance when they need the money.
When getting out into the field, you will see how the reactions to cash advances are very black and white. Usually, the merchant won’t be upset that you offered it, but will probably tell you that they have a good line of credit as well as a good relationship with their local bank. In that case, there are no objections to overcome. It’s the truth. But, you still want to make sure that they know you offer it and to contact you if they would ever need one. Regardless of what processor you sell for, look into our marketing-platform. As those of you who already have our marketing-platform know, I talk about cash advances quite frequently to your prospects. This is a great way to have this information out in front of them and they will know to contact you for a merchant cash advance. Find out more HERE.
When you go into a business, the pitch of the presentation is this. I recommend, you begin with merchant services. Once you are done with the conversation, whether you made a sale or not, mention that our company does offer short-term working capital with no personal guarantee and can get this money to them within 3 to 5 business days because it is bundled in with their merchant services (basing the amount off of their credit card processing volume). “Have you ever considered getting a short-term capital loan like this before?”
When you ask that question, it will give you everything you need to know about that business in terms of a cash advance. If they are in a good place financially with their business, remember to give them your card and emphasize that you are local. As you know, there is a lot of paper and be being so close, you can go there and get it done right away because they need this money NOW.
If the merchant shows ANY interest, they need the merchant cash advance. If they didn’t need this money, they wouldn’t even open the door to the idea. From this point, you can definitely move forward. You will want to give them a timeline, so it shows that you want to get this process started and get them the cash they need.
First, get them started with the merchant services. Let the merchant know that you will get them a FREE credit card machine in their business tomorrow (overnight it), that way they can start processing for the cash advance. Promise them you will either match their rate or give them an even better rate then what they have now. That way the merchant knows they are not losing any money. Be sure to tell them again that you can’t get them the short-term working capital without the merchant services to take the repayment source out.
Finish the conversation with, “Let me get that done for you today, and I will follow-up with you tomorrow after you get a chance to think about it and talk it over with your business partners. All I have is this simple, one page pre-approval form that you will need to fill out, and I can then come back and give you an offer. There is no obligation to take this offer, but I will swing by tomorrow to get all of this done, so we can get an idea of how much we can loan you.”
Remember, you want to make sure to let your local merchants know that you offer cash advances and then once they show interest, push forward quickly and get that cash advance before they get one from someone else.
In Part III, I will be going over the commission on cash advances as well as the approval and submission process.
Read previous post: How to Sell Merchant Cash Advances – Part 1
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