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GAAP, FASB software for Merchant Cash
Advances
Definitions:
$25,000.00 = Proceeds check to customer.
$5,000.00 = Profit Discount, a Deferral
to be recognized under GAAP.
$30,000.00 = Face Value, the total
amount to be repaid.
(with respect to
Face Value, the $5,000.00 Profit is a
Deferral being recognized as a Discount).
Amortize
dozens, hundreds,
thousands of MCA deals at the same time
GAAP IRR
Effective Interest Rate calculation for each
record.
Deferred Profit Discount Balance Totals
Other deferred income, expense Balance
Totals
NPV Net Present Value (Face Value +/- Deferral balance)
Daily, weekly, other payment
frequencies.
Lifetime amortization schedule
for each fee, for each record.
Deferral
% reductions for syndicated participations.
Clear up auditing exceptions with a minimum
amount of effort.
Determine what
Discount, other
Income
and Expense BALANCES should
be
when
using the GAAP
effective
interest method
for daily and
other frequency
payments
End of month
End of year
Compare software
deferral balance to
cash basis deferral balance.
Adjust income, expense accordingly.
Designed to
eliminate footnote exceptions on
Financial Statements
Audit schedules
for each deal:
Day-by-Day
recognition
schedule opens in Excel
Monthly totals
Supportive documentation
IRR, NPV independent
verification in seconds
Show results
for any deal(s) to your auditor
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Easy to operate
Automatically import MCA Deals file to the
software
Import basic information for each Deal
consisting of:
Deal number/Description
First pay date
Final pay/maturity date
Original Face Value
Discount, Profit (or other fee to be amortized as income,
expense)
Deferral % Owned if syndicated
Current Face Value
Payment frequency: Daily
and other frequencies
Payment amount:
Prior periods,
software
determines an
average payment
based on
((Original Face
Value - Current
Face Value) /
Payments Due)
Future periods,
software
utilizes Payment
amount and can,
if necessary,
extend Final
Payment Due Date
Daily payments exclude the following
dates:
Saturday
Sunday
And the observed day for
New Year's
Martin Luther King birthday
Memorial day
July 4th
Labor day
Veteran's day
Thanksgiving
December 25th
Exception: If a Final Payment date falls on any
of the above, the Final Payment will become a Payment.
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Import File
Layout and
Column
Documentation
Extract Deals
from a servicing
system.
Populate
this
Excel template
that comes with
the software.
Automatically
import Deals to
the software.
Grey Column
Headers can be
renamed to suit
your operation.
Column L through
X values are not
required.
Column A
Deal
Number (Value
required)
Typically a
numeric value by
which to
identify this
record when
viewed on
reports.
Column B
Description
(Value can be
blank)
An alphanumeric
value by which
to identify this
record when
viewed on
reports.
Typically
customer name.
Column C
First Payment
Due Date
(Value required)
The first day
Deferral
amortization is
to begin as
m/d/yyyy.
If
the date is in
the past, the
system will
amortize
forward.
If
this date is
later than the
file import
date, the Deal
will not show
any amortization
recognition.
Column D
Final Payment
Due Date
(Value required)
The final day of
Deferral
amortization as
m/d/yyyy year
(must be 4
digits).
The
Final Payment
Due Date may be
recalculated by
the software
based on Payment
and Current Face
Value at time of
import.
Column E
Discount
Profit
(Column Header
can be changed)
(Value can be
blank, 0.00 or a
positive number)
Contains profit
income (the
Deferral) amount
to be amortized.
Ex:
Proceeds
check =
20,000.00
Profit on deal =
10,000.00
Face Value =
30,000.00, the
total amount to
be paid by
customer.
Profit of 10,000
is a Discount
with respect to
Face Value and
is the Deferral
amount to be
amortized under
GAAP.
Additional
Income and
expense amounts
are supported
starting in
column Q.
Column F
Notes (Column
Header can be
changed) (Value
can be blank)
A value in this
column will be
appended to
Column B
Description.
Column G
Original Face
Value
(Positive Value
required)
Column D
Discount Profit
will be
subtracted from
the value in
this column to
determine Net
Present Value.
Column H
Percent Owned or
retained if
Syndicated
If blank, 0 or
100, the system
will recognize
the full
Deferral amount,
such as
Discount.
If
a %, the system
will recognize
that percentage
of the Deferral,
i.e. the
Deferral will be
reduced.
Ex:
If Discount =
$10,000 and
Percent Owned =
40%, the
Deferral amount
to be recognized
would be $4,000.
Column I
Current Face
Value
(Positive Value
required)
The current face
value. Total
amount still due
or 0.00.
If
value is less
than 0.00, the
system changes
the value to
0.00.
Column J
Payment
(Positive Value
required)
The software
determines an
"average" cash
flow payment
using valid due
dates (excludes
weekends, etc.)
based on the
difference
between Original
Face Value and
Current Face
Value as of the
file import
month.
Subsequent month
payments are the
imported Payment
in this column.
Column K
Payment
Frequency
(Value
required) If
blank, value
becomes D for
Daily
D or Daily
(default value
if blank)
W
or Weekly
B
for Bi-weekly
(software treats
as weekly using
1/2 of payment)
M for Monthly
(software treats
as weekly by
multiplying
payment X
12/52).
Column L
Report Code 1
(Column Header
can be changed)
(Value can be
blank)
The system can
generate reports
with subtotals
for records
sorted by one or
both user
defined values
in Columns L and
M.
Examples
of user defined
values:
Deal type, such
as restaurant,
auto repair,
retail and so
forth.
Deal
originator:
Employee who
closed the Deal.
Deal
location: City,
borough, common
geographical
sections.
Other codes
or descriptions
for which totals
are desired.
Column M
Report Code 2
(Column Header
can be changed)
(Value can be
blank)
The system can
generate reports
with subtotals
for records
sorted by one or
both user
defined values
in Columns L and
M.
Column N
Deal
Date (Column
Value not
required) (If
blank, Value
becomes First
Payment Due
Date)
The date the
Deal closed,
typically the
day a Deal was
funded.
If
blank, the
software will
insert the First
Payment Due
Date.
Column O
Stop
GAAP/Write Off Date
(Column Header
can be changed)
(Value can be
blank)
Normally blank.
If a date exists
in this column,
the software
will stop
amortizing the
Deferral as of
this date.
The software
will retain the
Deferral balance
as of this date.
Typically use to
indicate a deal was or
is about to be written
off. If column O is
used, we recommend
importing two files,
such as:
202503-My Deals which
EXCLUDES deals
with a date in column O
to Deferral
Balances from being over
stated due to Write
Offs.
202503-My
Write Offs which ONLY
INCLUDES deals with a
date in column O.
Column P
Exclude from
Import (Column
Header can be
changed) (Value
can be blank)
Normally blank.
Otherwise, ANY
value, whether a
date, text,
number or
anything other
than a blank
value will
exclude the Deal
from being
imported.
Typically used
to exclude Deals
that are
basically "dead"
or have major
problems.
Columns Q thru V
Additional Fees
(Column
Headers can be
changed) (Values
can be blank,
0.00 or a
positive number)
Up to 6 user
defined columns
to amortize
additional fees
using GAAP.
Column Names:
1st character
must be: (not
case sensitive)
I for
Income or
E for expense
2nd character is
optional:
% means the
fee is subject
to %Owned
column, the
syndicated
percentage.
If %Owned =
40%, then the
fee will be
reduced. 100.00
fee with %Owned
of 40.00000 will
amortize a
Deferred fee of
40.00
Accepted entries
I = Income
E = Expense
I% =
Income, adjusted
by % Owned
E% =
Expense,
adjusted by %
Owned
Ex:
Column header =
E% Attorney Fees
Attorney Fee for
a Deal = 500,00
Percent Owned =
40.00%
Amount
of fee will be
recognized as
Expense of
200.00 which is
(500.00 * 40%)
Column W
Modification
Date (Value
can be blank)
(if used,
requires a value
in X)
A Modification
Date notifies
the system when
you change a
Payment Amount
and/or Final
Payment Due
date.
Original Face
Value =
100,000.00
Original
Discount Profit
= 10,000
First Payment
Due date =
1/1/2024
Final Payment
Due date =
12/31/2024
Modification
Date = 6/15/2024
Face Value as of
Modification
Date = 40,000
(Column X)
When a
Modification
occurs, the
software treats
the earlier part
of the Deal as
being complete
and recognizes
that portion of
a Discount and
other fees using
a cash basis
method, i.e.,
payments
received in
cash.
Using
Original Face
Value and
Current Face
Value, the
software
calculates:
Cash basis
uses the
percentage of
Original
Discount /
Original Face
Value:
(10,000 / 100,000),
which is 10%.
For every dollar
received, 10% of
that dollar
reduces Discount
Deferral, 90%
reduces
Proceeds.
As of
the Modification
Date,
Cash basis
discount
recognition is
Face Value
Reduction
(100,000 -
40,000) of
60,000. (60,000
* above percent
of 10%) =
6,000.00.
Remaining
discount = 4,000
(10,000 - 6,000)
An amortization
schedule will
show "two
deals".
First
deal will
amortize the
discount in full
using Face Value
of amount
received, 60,000
and a
Discount of
6,000.00.
Second deal will
begin amortizing
the remaining
values using
GAAP.
Remaining Face
Value of
40,000.
Remaining Discount
of
4,000.00.
Payment Amount
can be changed.
Final Payment
Due date can be
changed.
First Payment
Due date must
remain as
1/1/2024.
Except for
Payment Amount
and Final
Payment Due
date, all other
values need to
remain the same
as the original
deal.
Column X
Modification
Face Value
(Column Header
can be changed)
(Value can be
blank, 0 or a
positive value)
(if used,
requires a value
in W)
Normally blank.
If Column W has
a date, Column X
must be the Face
Value of the
deal as of the
Modification
Date in Column
W.
Also see
Column W, above.
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Price
Click to open and view MCA
Price page
Includes
free demo link with:
• A live version of the software
• Sample records plus add YOUR deals
• Ability to run detail schedules
For more information,
please call
1-800-245-8444
(Florida, Eastern Time)
or
email
Support@fdssi.com
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