Merchant cash-advance company AmeriMerchant LLC’s merger with CanaFunding LLC this week is enabling independent sales organizations to sell cash-advance services in either the U.S. or Canada, says David Goldin, AmeriMerchant president and CEO.
U.S. ISOs can sell AmeriMerchant’s cash-advance services to Canadian merchants, and cash-advance resellers in Canada likewise now may market to U.S. merchants, Goldin says, declining to disclose the terms of the deal announced Aug. 2 in which AmeriMerchant bought CanaFunding.
CanaFunding launched in 2007 and will retain its brand name. Both companies are based in New York.
“This opens up more merchants,” Goldin says. “There is still a tremendous amount of business to be sold.”
Sales agents make approximately 28% in commission from the typical merchant cash advance, Goldin says. AmeriMerchant’s average U.S. advance amount is $20,000 (C$19,500).
Merchants receiving advance funds from AmeriMerchant repay the debt based on a percentage of their credit and debit card receivables.
CanaFunding likely will not be the last acquisition for AmeriMerchant, Goldin says.
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