This type of small business financing is characterized by shorter payment terms (up to 24 months). The money that is borrowed can be used for a wide variety of business expenses and is normally repaid through small payments subtracted from the business bank accounts each day. This is often easier for the business owner to manage compared to the larger monthly payments and longer payment terms associated with traditional bank loans. Merchant finance companies can vary greatly in their qualifying criteria. Some look for stronger, more established businesses, while others will work with companies as new as a few months in business. BFC’s usually make 1 to 10 points on this type transaction.