A plain-English explanation of what we do, how transactions are structured, and what happens at each stage — for ISOs, merchants, and anyone who received a notice.
A merchant cash advance (MCA) or receivables purchase is not a loan. It is the sale of a portion of a business's future revenue to a commercial purchaser — in this case, East Shore Equities.
The business (the "seller" or "merchant") receives an upfront lump sum of capital. In exchange, they agree to remit a specified amount from their future revenue to East Shore Equities until the purchased amount is satisfied. The transaction is documented through a written Purchase and Sale Agreement.
This structure is governed by commercial contract law and, where applicable, Article 9 of the Uniform Commercial Code. It is a well-established form of small business financing used by thousands of businesses nationally.
ISOs submit merchant applications along with 3–6 months of business bank statements and a completed application form.
Complete documentation moves deals fastest. Missing bank statements are the most common source of delays.
Our underwriting team reviews the merchant's bank statements, business type, revenue history, and existing obligations. We evaluate cash flow, consistency, and the business's capacity to honor the purchase agreement terms.
We do not conduct personal credit checks or background checks. Our underwriting focuses entirely on revenue consistency and cash flow history.
An approved offer specifies the purchased amount, the advance amount, the factor rate, and the remittance terms. The ISO receives the offer and presents it to the merchant.
The merchant and East Shore Equities execute a written Purchase and Sale Agreement documenting all terms. This is a commercial contract — not a loan agreement — and contains no interest rate, only a purchased amount and remittance schedule.
East Shore Equities documents and perfects its interest in the purchased receivables in accordance with applicable commercial law. This is a standard step in commercial receivables transactions.
Funds are transferred to the merchant's business bank account. Remittance of the purchased amount begins per the agreement terms. ISO commission is paid upon funding.
In transactions where East Shore Equities acquires the right to collect from a merchant's customers, we may send formal notification to those account debtors directing them to remit future payments to us. Under UCC § 9-406, a properly notified account debtor must pay the assignee (East Shore Equities) to discharge their obligation.
If you received such a notification: this is a legally significant communication. Please read it carefully, follow the payment instructions provided, and contact us with any questions.
Whether you're an ISO evaluating our program or someone who received a notice — we're here to help.