How much will I get from the Payment Card Settlement? Analyzing the Opportunity Cost As a savvy business owner, it’s essential to consider the opportunity cost of waiting for the Mastercard Visa class action settlement case to close versus accessing funds immediately through a pre-settlement cash advance. By taking the cash advance, businesses can invest in growth opportunities, improve their operations, or mitigate cash flow issues, thereby increasing their overall financial position. The most frequently asked question we receive is how much will I get from this class action? Time Value of Money Let’s assume a business is eligible for a $100,000 payout from the settlement, and the case resolves in 2028. The question to consider is: what could be achieved with that $100,000 if it were invested in the business today? The time value of money (TVM) principle states that a dollar today is worth more than a dollar in the future, due to its earning potential. This concept is crucial when considering the benefits of pre-settlement cash advances. For instance, if a business invests the $100,000 cash advance in an opportunity that yields a 5% annual return, by 2028, the investment would have grown to: Present Value: $100,000  Projected Payout: May 2028 Time Value of Money= 100,000 (1 + 0.05)^(2028-2023) = $127,628 Future Value= $127,628 This represents a gain of $27,628 (or 127%) over the initial cash advance amount. By waiting for the case to close, the business would miss out on this potential growth. Risk Mitigation and Diversification Accessing pre-settlement cash advances also allows businesses to mitigate risks associated with the uncertainty of the case’s outcome. By investing the funds in diverse growth opportunities, businesses can protect themselves from potential financial losses if the case does not resolve favorably. Moreover, diversification enables businesses to spread their risks across multiple investments, reducing the impact of a single underperforming asset. This strategy can lead to a more stable financial position in the long term. Improved Cash Flow and Business Stability Another advantage of pre-settlement cash advances is the positive impact on a business’s cash flow. SMBs often face cash flow challenges due to unforeseen expenses or fluctuations in revenue. By accessing funds now, businesses can alleviate these issues and maintain stability. For example, a business facing a sudden downturn in sales can use the cash advance to cover essential expenses and avoid taking on costly debt. This decision can ultimately result in a stronger financial position and increased resilience to economic fluctuations. Opportunity for Leveraging Debt By taking a pre-settlement cash advance, businesses can also leverage low-interest debt to further fuel growth. With interest rates at historic lows, businesses can take advantage of favorable borrowing conditions to invest in new opportunities or expand operations. For instance, a business might use the cash advance as collateral for a low-interest loan, allowing them to access additional capital without increasing their overall debt burden significantly. This strategy can lead to exponential growth and a more robust financial position. The Smart Financial Move for SMBs Given the uncertain outcome and timeline of the Payment Card Settlement, pre-settlement cash advances offer qualifying SMBs the chance to secure their financial future now. By eliminating future guesswork and mitigating the risk of the case not progressing you’re saving employees’ time – all while boosting your business’s bottom line. Yes, the juice is worth the squeeze. Find out your eligibility and apply after a 15 minute call with a case expert! Schedule an appointment or give us a call at (312) 574-0655.