ProPower Revolving Business Account

ProPower is a private label, turn-key credit card program designed to provide Distributors an important value-add for customers—satisfaction of their ongoing purchasing needs within an established credit limit. The Distributor receives the sales proceeds up front, and their customer has affordable, flexible monthly payment options. ProPower allows Distributors and their customers greater control and financial flexibility for their businesses.
Participating Distributors find that ProPower provides substantial benefits, including:

  • Immediate improvement of cash flow, with typical funding of sales within 48 hours
  • Decreased exposure to bad debts and increased bottom-line profits
  • Deferred-billing opportunities that help to solidify customer relationships
  • Outsourcing of billing and collections, which decreases operating expenses and reduces staffing requirements
  • Transferring the collections task to FMSI allows Distributors to build better relationships with the customers, resulting in increased sales
  • Enhanced customer loyalty and building of repeat business with the ProPoints program
  • Increased sales by expansion of market base to those customers with unproven or less-than-desirable credit
  • Online access to customer accounts and detailed executive reports
  • Potential expansion of customer credit limits with no additional risk to the Distributor
  • Reduction of Distributor's DSO and the cost to carry those receivables

                (see example in chart below):

Wholesaler/Distributor A

Average DSO
45 Days

7 Day Reduction
in DSO 38 Days

15 Day Reduction
in DSO 30 Days

Annual Sales




One Day Sales
(Annual Sales / 310 Days Open)




Accounts Receivable




(Accounts Receivable / One Day Sales)




Cost of Borrowing




Cost of Working Capital due to carried Accounts Receivable
(Accounts Receivable * 4.00%)




Total Savings




Customers using ProPower achieve numerous benefits, including:

  • Flexible monthly payment options, which help manage cash flow
  • Increased business credit, which allows business owners to save personal credit resources for personal needs – this helps provide working capital for customers without a banking relationship
  • Generous credit limits that are designed to meet purchasing needs within financial capabilities
  • Timeframe of up to 52 days (or longer if deferred billing opportunities are offered) to make payments, without incurring finance charges
  • Free travel and merchandise rewards as a result of participation in the Distributor’s ProPower program (through participating Members)
  • Informative monthly statements with online access that tracks purchases, improves efficiency, allocates job costs, and helps control expenses
  • Access to account balance, history, available credit, and account statements, with online, real-time payment authorization


  • Distributors select which customers to include in the program. There is no minimum number of accounts required to participate.
  • FMSI provides Distributor with private-label applications and marketing materials. Completed applications are typically processed within 24 to 48 hours.
  • The suggested credit limit for the applicants is two to three months of expected sales for the customer; however, the actual credit limit granted is based on the account type and/or the applicant’s creditworthiness.
  • ProPower accounts are business credit; therefore, customers’ personal guaranties are requested but not necessarily required.
  • At application and prior to credit processing, Distributors can choose from three ProPower account types when evaluating a new applicant. These programs include Non-Recourse, Shared Recourse, or Recourse.
    • Non-Recourse. Non-Recourse accounts are no risk to the Distributor, have a minimum credit limit of $1,000 and a maximum credit limit of $50,000. These accounts are unsecured debt for FMSI, and as such are ineligible for lien filings. Credit limits are determined by FMSI and are based solely on the credit status of the applicant. Higher credit limits are available as Recourse or Shared Recourse accounts. Non-Recourse transaction fees are compatible with standard credit card fees.

    • Shared Recourse. The Shared Recourse program can increase customer credit limits without increasing the Distributor’s risk. In the event of customer default, FMSI and the Distributor would share the loss at 50% each. Since the Distributor is partially responsible for this account, lien rights are still in effect, providing a higher level of security for the Distributor. Shared Recourse transaction fees are lower than Non-Recourse accounts as a result of the shared risk. Shared Recourse accounts have no minimum or maximum credit limit. Credit limits are requested by the Distributor, but are underwritten and approved by FMSI. 

    • Recourse. Recourse accounts have credit limits determined by the Distributor, who is guaranteeing repurchase of the account in the event of customer default. Distributors have an established credit limit for cumulative Recourse and the applicable portion of Shared Recourse accounts that is based on the Distributor’s financial strength. As a reflection of the reduced credit risk, the transaction fee for Recourse transactions is significantly lower than the other ProPower account types.
  • The Distributor and the customer are notified upon approval of credit. The customer receives a welcome package with the account details, as well as confidential access codes for the ProPoints Program (if applicable) and instructions for the ProPower Online Program.
  • Sales transactions can be processed at point of purchase by credit card terminals, online access, interface with the Distributor’s in-house software program, or by batch FTP each evening. FMSI works with each Distributor to develop the most efficient method of transaction processing based on the Distributor’s needs.
  • Acceptable sales transactions must be current, which is considered to be within 14 days of the date of the customer’s purchase of goods and simultaneous invoicing by the Distributor. Sales transactions older than 14 days from the date of customer acceptance of goods are generally not acceptable and would require approval by FMSI management. Existing, aged transactions may qualify as Recourse ProPower accounts or for term loans which are recourse.
  • Deferred billing opportunities are available to extend credit terms for select customers. Distributors can prepay finance charges for up to an additional 90 days.
  • Sales transactions are typically funded daily for ProPower transactions occurring in the prior 48 hours, via ACH, to the Distributor’s bank. The daily settlement statement includes the detailed sales activity for the day as well as the applicable transaction fees. This statement is available online and can be downloaded for the Distributor’s internal accounting use.

Transaction fees are netted against the daily sales proceeds and decrease as the Distributor’s monthly volume increases. See the ProPower Pricing Sheet for details.

  • FMSI performs all billing and collection, allowing the Distributor’s staff to concentrate on sales, not collections. Additionally, transference of these tasks to FMSI helps the Distributor to maintain good customer relationships.
  • Statements are produced monthly with minimum payments due not less than 22 days after the billing date. Customers can receive up to 52 days to make their payment without incurring finance charges, or they can take advantage of the flexible payment option by making the minimum required payment of 10% of the outstanding balance. In deferred billing situations, customers can receive up to 90 additional days to make their payment without increased finance charges.
  • With Internet access, Distributors can obtain customer account information, as well as detailed portfolio reports, 24 hours a day, seven days a week. Secure user IDs and passwords allow Distributors to grant total or limited access to branches and corporate offices for up-to-date information.
  • Customers can access their account balance, history, available credit, and account statements online, as well as authorize electronic payments.
  • The ProPower Pricing Sheet lists finance charges, late charges, service charges, and transaction fees. For additional program rules and regulations, visit our website at
  • The ProPoints Rewards Program is a recommended feature of the ProPower Program. This optional program is a sales tool designed to encourage customers to participate in the ProPower program. The program also creates loyalty and repeat business by rewarding valued customers with travel awards and merchandise. For further details, see information on FMSI’s ProPoints Rewards Program.

FMSI’s comprehensive sales and marketing training program helps Members target prospective ProPower customers and convey to them the value of using ProPower. With ProPower, Distributors provide a value-added program to customers and experience benefits such as increased cash flow and sales. As an involved partner, FMSI will work closely with the Distributor to ensure that their staff has a thorough understanding of the program. Additionally, FMSI provides customized marketing materials to help encourage customer participation, and ProPower representatives are readily available to provide responsive service to the Distributor.


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