The business industry over the past few years has become a tight credit industry with many businesses making up for the losses of their consumers. Let’s face it, as the consumers begin to feel economic constraint, business too begin to feel this stress. As less customers and clients are able to make their monthly payments, these businesses are at a great loss. Just consider 10 clients defaulting on their monthly payment; the company could be at a loss of thousands in operating revenue and working capital. At the same time, the business’s credit score is decreasing making it harder and harder to obtain funding. With banks typically only lending to businesses that hold a credit score that is no less than 740, this creates a challenge for small businesses.
The Small Business Solution
So for these small businesses, there is a cash advance that is about ten years old and has begun creating a strong financial restructuring foundation for many small businesses: a merchant cash advance. The key to makes the merchant cash advance the ultimate solution for these businesses is that it offers the funding that would otherwise be unavailable due to credit limitations. Offering a funding solution for small businesses with a credit score as low as 520, merchant cash advances are providing opportunities that are otherwise not available. The funding could be anywhere from $10,000 to some lenders offering as much as $500,000 in a matter of 7 business days, very quick and very beneficial to these small businesses.
Qualifications for a Merchant Cash Advances
Merchant cash advance providers are able to offer these cash advances many times with no collateral required to secure funding and repayment is made through a small percentage of future credit care payment receipts. So, small businesses get a lump sum for venture or working capital and in return repay the merchant cash advance provider with a share of the future sales made by the business. This is mainly why the cash advance approval is based in part on monthly and annual credit card transactions within the business.
A merchant cash advance could be the answer for small business in an industry that isn’t dominated by high credit scores anymore. There are more businesses that are able to earn the revenue, but due to economic stress have seen a sliding credit score. These cash advances work with the future sales of these businesses to secure funding they need quickly.
Tuesday, July 20, 2010
Wednesday, June 16, 2010
Merchant Cash Advance...can I get a cash advance with bad credit?
Maybe you have been turned down by a bank for business funding and are wondering whether or not you will qualify for a merchant cash advance if you have bad credit? The short answer is yes. I should have said probably. Let me explain.
Most funding companies will accept business owners with a credit score above 525 and if they meet certain other criteria. I guess the question is what do you consider bad credit. If you are that person with a 525 or a 560, you have a good chance of getting approved but here is an idea of what else underwriters will be looking at. They will look at your merchant statements to make sure you have consistent volume over a period of time usually four to twelve months. Remember because you are not signing a personal guarantee, the only assurance the funding company has of you paying the advance back is if your credit card volume stays consistent. They will look at your average ticket. The lower the better but most will take up to a $500 average ticket. Some will take higher. They also want to see a large number of batches, usually 12 or more in a month.
They will also look at your credit report regardless of your score and see if you have any judgements and liens. If you have a payment plan and can show them a copy of this plan along with a cancelled check, they will overlook it. They also want to see your bank statements and want to see if you have any NSFs. They want to see trending. If you had 12 six months ago but had only one last month, then you are probably ok.
But let’s say you are below a 525 and have some other issues, maybe NSFs, you can still get approved. There are a couple of starter programs out there. Basically it is a trial advance. The funding companies will advance you only a small percentage of what they normally would, maybe 20-30% of your monthly credit card volume. Then they will see how well you pay it back. They may require you to get two smaller advances and once you display you are a good risk, they may give you an amount that you would have gotten if your credit was better.
So if you need cash, the banks won’t give you a dime, and merchant cash advance companies have said no, don’t despair. There are a couple of options but you may have to prove you are a good risk before you get all the money you would like. If you are credit challenged and need funding, check out a merchant cash advance.
http://www.merchantcash.com
Most funding companies will accept business owners with a credit score above 525 and if they meet certain other criteria. I guess the question is what do you consider bad credit. If you are that person with a 525 or a 560, you have a good chance of getting approved but here is an idea of what else underwriters will be looking at. They will look at your merchant statements to make sure you have consistent volume over a period of time usually four to twelve months. Remember because you are not signing a personal guarantee, the only assurance the funding company has of you paying the advance back is if your credit card volume stays consistent. They will look at your average ticket. The lower the better but most will take up to a $500 average ticket. Some will take higher. They also want to see a large number of batches, usually 12 or more in a month.
They will also look at your credit report regardless of your score and see if you have any judgements and liens. If you have a payment plan and can show them a copy of this plan along with a cancelled check, they will overlook it. They also want to see your bank statements and want to see if you have any NSFs. They want to see trending. If you had 12 six months ago but had only one last month, then you are probably ok.
But let’s say you are below a 525 and have some other issues, maybe NSFs, you can still get approved. There are a couple of starter programs out there. Basically it is a trial advance. The funding companies will advance you only a small percentage of what they normally would, maybe 20-30% of your monthly credit card volume. Then they will see how well you pay it back. They may require you to get two smaller advances and once you display you are a good risk, they may give you an amount that you would have gotten if your credit was better.
So if you need cash, the banks won’t give you a dime, and merchant cash advance companies have said no, don’t despair. There are a couple of options but you may have to prove you are a good risk before you get all the money you would like. If you are credit challenged and need funding, check out a merchant cash advance.
http://www.merchantcash.com
The Difference between a Merchant Cash Advance and Business Loan
If you are a small business with a less than worthy credit score for bank lending, but make at least $3,000 in credit card income? If so, you don’t have to be limited by a low credit score as there are merchant cash advances out there that can give you the funding you need for business growth, venture capital, or working capital. These merchant cash advances have worked very well for small businesses in the past ten or so years as it plays more on using future sales as collateral in order for these businesses to get the funding they need.
What is the Difference from Business Loans?
Although businesses have for many years had the option of business loans to obtain funding, merchant cash advances offer a better option for businesses with a credit score below 740. These days, most banks just aren’t going to trust a business with a lower credit score to lend them money. Cash advances are also less regulated than these bank loans. This makes it easier for these merchant cash advance providers to provide funding by purchasing future sales of the business. For this reason, these providers are looking more at the monthly income brought in from credit cards, mostly the major credit cards like Visa and MasterCard.
There is also a lot less needed in order to secure the advance compared to a business loan. Many times, a small business loan requires several documents including:
Business plan
2-3 years of personal and business tax returns
2-3 years of personal and business financial statements
There are also many other things that may be needed including:
Application Fee
Personal Guarantee
Closing Costs and Hidden Fees
Collateral on all Business and/or Personal Assets
So the difference here is that merchant cash advances don’t require any of these things at all. There is no business plan needed, and most businesses that have been in operation at least 2 years are approved. There are no tax returns or financial statements needed, just proof of monthly income from credit card sales to ensure there is something to purchase. Although there is no personal guarantee required, there is a guarantee against fraud or intervention needed, to ensure that there will be no issues when the provider attempts to collect their payment through the credit card receipts. While bank loans could take up to months for the approval process, merchant cash advances are approved within 48 to seven days in most cases, offering the ultimate option for small businesses in need of immediate capital. For more information visit: http://www.merchantcash.com/
What is the Difference from Business Loans?
Although businesses have for many years had the option of business loans to obtain funding, merchant cash advances offer a better option for businesses with a credit score below 740. These days, most banks just aren’t going to trust a business with a lower credit score to lend them money. Cash advances are also less regulated than these bank loans. This makes it easier for these merchant cash advance providers to provide funding by purchasing future sales of the business. For this reason, these providers are looking more at the monthly income brought in from credit cards, mostly the major credit cards like Visa and MasterCard.
There is also a lot less needed in order to secure the advance compared to a business loan. Many times, a small business loan requires several documents including:
Business plan
2-3 years of personal and business tax returns
2-3 years of personal and business financial statements
There are also many other things that may be needed including:
Application Fee
Personal Guarantee
Closing Costs and Hidden Fees
Collateral on all Business and/or Personal Assets
So the difference here is that merchant cash advances don’t require any of these things at all. There is no business plan needed, and most businesses that have been in operation at least 2 years are approved. There are no tax returns or financial statements needed, just proof of monthly income from credit card sales to ensure there is something to purchase. Although there is no personal guarantee required, there is a guarantee against fraud or intervention needed, to ensure that there will be no issues when the provider attempts to collect their payment through the credit card receipts. While bank loans could take up to months for the approval process, merchant cash advances are approved within 48 to seven days in most cases, offering the ultimate option for small businesses in need of immediate capital. For more information visit: http://www.merchantcash.com/
Friday, June 4, 2010
Who can Use a Merchant Cash Advance and Why?
There are many different types of loans and cash advances out there these days, but who are merchant cash advances for, who can benefit the most, and what can be done with them? These are some of the questions circulating the industry as there are more and more merchant cash advance providers that are offering better rates and better terms. Understanding who benefits and who should use them involves knowing what they are and what they can be used for to fully grasp who gets the most from these advances. Sure, they aren’t for everybody, but for the businesses that have been using them, they have proven quite effective at providing the funding needed in an adequate time frame and with a decent payment in return.
Who is Business Advances Intended for?
A merchant cash advance, or business advance is a type of working capital funding for small businesses, aimed mostly at those in the retail, restaurant, or similar industries. These small businesses may have poor credit due to past economic shortfalls due to client defaulting and what not, but are still bringing in an adequate income through credit card transactions. Typically, merchant cash advances are for small businesses with a credit score of less than 740 but no less than around 520. This provides assistance for those with poor credit, but ensures the credit isn’t so poor there is no chance of repayment.
Who can benefit the Most from Merchant Cash Advances?
For those small businesses that have poor credit and aren’t able to get bank funding or can get bank funding but with too many stipulations, terms, fees, hidden costs, and extremely high interest, merchant cash advances could be quite beneficial. These merchant cash advances offer quick funding, many times approved within 48 hours or up to 7 days, and with minimal catch. There aren’t interest fees that will begin to mount extremely high and there are no hidden costs. Business cash advances can provide the working capital needed immediately just based on future credit card sales.
Merchant cash advances can be used for growing a business larger, adding new equipment, increasing service provision, or even just working capital to continue efficient operation. These advances could by computers for an office or seating and tables for a restaurant, even a new clothing line for a retail outlet. There are countless options and endless potential, and an easy pay back that provides many small businesses with the right answer for funding. For more information visit: http://www.merchantcash.com
Who is Business Advances Intended for?
A merchant cash advance, or business advance is a type of working capital funding for small businesses, aimed mostly at those in the retail, restaurant, or similar industries. These small businesses may have poor credit due to past economic shortfalls due to client defaulting and what not, but are still bringing in an adequate income through credit card transactions. Typically, merchant cash advances are for small businesses with a credit score of less than 740 but no less than around 520. This provides assistance for those with poor credit, but ensures the credit isn’t so poor there is no chance of repayment.
Who can benefit the Most from Merchant Cash Advances?
For those small businesses that have poor credit and aren’t able to get bank funding or can get bank funding but with too many stipulations, terms, fees, hidden costs, and extremely high interest, merchant cash advances could be quite beneficial. These merchant cash advances offer quick funding, many times approved within 48 hours or up to 7 days, and with minimal catch. There aren’t interest fees that will begin to mount extremely high and there are no hidden costs. Business cash advances can provide the working capital needed immediately just based on future credit card sales.
Merchant cash advances can be used for growing a business larger, adding new equipment, increasing service provision, or even just working capital to continue efficient operation. These advances could by computers for an office or seating and tables for a restaurant, even a new clothing line for a retail outlet. There are countless options and endless potential, and an easy pay back that provides many small businesses with the right answer for funding. For more information visit: http://www.merchantcash.com
Thursday, May 13, 2010
Merchant Cash Advance, a great option for Your Business Funding Needs
Many of you business owners have been damaged by the weak economy as lenders become wary of lending to just any business. These days, you just can’t get a loan from a bank unless you have a credit score of 740 or better. Well, most of the businesses these days aren’t operating with such a great credit score due to the economy’s impact on consumers that have been forced to default on payments and leave many of you paying the difference. So what? A poor credit score shouldn’t be standing in the way of your funding options as you should have access to the funding you need to continue your business and grow as you please.
A Merchant Cash Advance could be just what is needed to get the working capital you need for all the operating costs that may arise unexpectedly or towards growth. Approving a credit score of as low as 525, you can get a business cash advance without having to worry if the lender understands the constraint the economy has created. A Merchant Cash Advance is provided by the leaders that fully understand the business world and the movement correlating to the consumers and that is the type of lender you want to deal with.
As long as you carry a 520 or higher FICO score with six months of business under your belt and $3,500 or higher in credit card volume within your business, you are qualified to receive the Merchant Cash Advance. With one simple application, no collateral needed, and up to $500,000 in no more than 7 days, you really can’t go wrong when you are in need of the appropriate business cash advance.
Restaurant funding is one of the most difficult types of business funding to obtain, but a Merchant Cash Advance can be the answer you are looking for if you are in the restaurant business. Even if you are opening a new business, this could be the business cash advance you need. Not only will you get the funding quickly, but your lender will trust in your investment, making their investment in you. What more could you ask of a lender these days?
Don’t let your business’s credit score stand in the way of your opportunities. You have big plans for your business and they should be allowed to get under way. There is a quick process to get your Merchant Cash advance that increases the efficiency and makes the deal all that much more wonderful. You are working with an unsteady economy, meaning that your consumers are struggling as well, and you should have access to a lender that understands your needs and can meet them in the best way possible. For more information visit: http://www.merchantcash.com
A Merchant Cash Advance could be just what is needed to get the working capital you need for all the operating costs that may arise unexpectedly or towards growth. Approving a credit score of as low as 525, you can get a business cash advance without having to worry if the lender understands the constraint the economy has created. A Merchant Cash Advance is provided by the leaders that fully understand the business world and the movement correlating to the consumers and that is the type of lender you want to deal with.
As long as you carry a 520 or higher FICO score with six months of business under your belt and $3,500 or higher in credit card volume within your business, you are qualified to receive the Merchant Cash Advance. With one simple application, no collateral needed, and up to $500,000 in no more than 7 days, you really can’t go wrong when you are in need of the appropriate business cash advance.
Restaurant funding is one of the most difficult types of business funding to obtain, but a Merchant Cash Advance can be the answer you are looking for if you are in the restaurant business. Even if you are opening a new business, this could be the business cash advance you need. Not only will you get the funding quickly, but your lender will trust in your investment, making their investment in you. What more could you ask of a lender these days?
Don’t let your business’s credit score stand in the way of your opportunities. You have big plans for your business and they should be allowed to get under way. There is a quick process to get your Merchant Cash advance that increases the efficiency and makes the deal all that much more wonderful. You are working with an unsteady economy, meaning that your consumers are struggling as well, and you should have access to a lender that understands your needs and can meet them in the best way possible. For more information visit: http://www.merchantcash.com
Monday, April 12, 2010
Merchant Cash Advance...can I get a cash advance with bad credit?
Maybe you have been turned down by a bank for business funding and are wondering whether or not you will qualify for a merchant cash advance if you have bad credit? The short answer is yes. I should have said probably. Let me explain.
Most funding companies will accept business owners with a credit score above 525 and if they meet certain other criteria. I guess the question is what do you consider bad credit. If you are that person with a 525 or a 560, you have a good chance of getting approved but here is an idea of what else underwriters will be looking at. They will look at your merchant statements to make sure you have consistent volume over a period of time usually four to twelve months. Remember because you are not signing a personal guarantee, the only assurance the funding company has of you paying the advance back is if your credit card volume stays consistent. They will look at your average ticket. The lower the better but most will take up to a $500 average ticket. Some will take higher. They also want to see a large number of batches, usually 12 or more in a month.
They will also look at your credit report regardless of your score and see if you have any judgements and liens. If you have a payment plan and can show them a copy of this plan along with a cancelled check, they will overlook it. They also want to see your bank statements and want to see if you have any NSFs. They want to see trending. If you had 12 six months ago but had only one last month, then you are probably ok.
But let’s say you are below a 525 and have some other issues, maybe NSFs, you can still get approved. There are a couple of starter programs out there. Basically it is a trial advance. The funding companies will advance you only a small percentage of what they normally would, maybe 20-30% of your monthly credit card volume. Then they will see how well you pay it back. They may require you to get two smaller advances and once you display you are a good risk, they may give you an amount that you would have gotten if your credit was better.
So if you need cash, the banks won’t give you a dime, and merchant cash advance companies have said no, don’t despair. There are a couple of options but you may have to prove you are a good risk before you get all the money you would like. If you are credit challenged and need funding, check out a merchant cash advance.
Most funding companies will accept business owners with a credit score above 525 and if they meet certain other criteria. I guess the question is what do you consider bad credit. If you are that person with a 525 or a 560, you have a good chance of getting approved but here is an idea of what else underwriters will be looking at. They will look at your merchant statements to make sure you have consistent volume over a period of time usually four to twelve months. Remember because you are not signing a personal guarantee, the only assurance the funding company has of you paying the advance back is if your credit card volume stays consistent. They will look at your average ticket. The lower the better but most will take up to a $500 average ticket. Some will take higher. They also want to see a large number of batches, usually 12 or more in a month.
They will also look at your credit report regardless of your score and see if you have any judgements and liens. If you have a payment plan and can show them a copy of this plan along with a cancelled check, they will overlook it. They also want to see your bank statements and want to see if you have any NSFs. They want to see trending. If you had 12 six months ago but had only one last month, then you are probably ok.
But let’s say you are below a 525 and have some other issues, maybe NSFs, you can still get approved. There are a couple of starter programs out there. Basically it is a trial advance. The funding companies will advance you only a small percentage of what they normally would, maybe 20-30% of your monthly credit card volume. Then they will see how well you pay it back. They may require you to get two smaller advances and once you display you are a good risk, they may give you an amount that you would have gotten if your credit was better.
So if you need cash, the banks won’t give you a dime, and merchant cash advance companies have said no, don’t despair. There are a couple of options but you may have to prove you are a good risk before you get all the money you would like. If you are credit challenged and need funding, check out a merchant cash advance.
Friday, March 19, 2010
Merchant Cash Advance...why underwriters look at your credit
So you are thinking about getting a cash advance and want to know what is involved in the approval process. Maybe you have applied for a bank loan and been declined because of credit and you may be concerned that the funding company may do the same.
Let’s take a look at the underwriting process and in a couple of minutes I will give you a better idea of how they will see it through their eyes.
When applying for a bank loan, credit is often times the most important factor in whether or not they approve a loan. In most cases, poor credit will result in an automatic decline unless you have significant collateral or assets to pledge against a loan. Typically your credit is the only way for banks to tell whether or not they will get repaid. Loans are typically longer terms, possibly as long as 10 years. The likelihood of a business being around in ten years is unlikely to start so the possibility of the bank having to try and collect is something they must consider. They will look at your credit to see how well you have paid back other obligations and use that as a gauge to determine whether or not you will pay them back in the event your business fails.
A merchant cash advance is different in many ways and underwriters look at it through a different set of eyes.
First they will pull your credit and look for a number of things. Credit score alone is not the only factor. Here are the specifics they will look at on your credit report.
As a generality above a 520 has a possibility of getting approved but certainly not the only factor. It is how you got to a 520 that is more important.
1. Mortgage: This is one of the most important factors they will look at. If you are 30 days late or more on your mortgage, underwriters may think you will use the funds not to grow your business but to take the money personally and save your home. Some companies may overlook 30 days late, but 60 days or more is a problem.
2. Tax liens: A tax lien is not necessarily a problem as long as you are on a repayment plan and you have some documentation to prove it. They may request a cancelled check payable to the IRS along with your repayment plan to show that you are honoring your obligation.
3. Civil Judgements: These are handled similarly to tax liens. Proof of a payment plan is going to be required.
4. Hospital Bills: Often times an unforseen accident or illness can result in medical costs that very few can pay for immediately. Underwriters understand this and some may not weigh this heavily in their decision making process.
These are the most important factors funding companies will look at. The next set of factors they will consider is how well your business is performing and what I would call “other things underwriters look for”. So if you have been turned down by a bank and you know your credit is not good, don’t be too discouraged. Merchant Cash Advance companies look at credit differently and your situation may be perfect for some companies.
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