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.
Wednesday, March 17, 2010
Merchant Cash Advance...other things underwriters look for
So you are thinking about a business cash advance but want to know very simply, will I get approved? Funding companies look at things differently than a bank for many reasons. I will give you a glimpse of how they think. Other than credit there are many things they look at. Here are some items most companies will look at.
1. Merchant Statements: Companies will require between 4 months and 12 months of merchant statements. Your processing history will give them an idea as to how consistent the volume is and what they can expect in the next 6 to 12 months. Underwriters are looking at a number of factors including average ticket, number of batches per month, and number of charges per month. Almost all companies typically like to see a minimum of 14 batches per month although one I know of doesn’t look at this at all. So if you are a marina that processes its slip rentals on the first of every month, most won’t like it but one will. They also want to see how your volume is trending. If they look at last February and compare it to this February, how does it compare? If your volume is down 50%, that may concern them. If it is a slight decline, flat, or growing then they may be ok with what they see.
2. Bank statements: They will look at bank statements to see a number of different things. If you have a number of NSF’s, that is not a good thing. If you had a tough time 5 months ago but have since cleared it up, they will often times take that into account. They will also look at average balance to see if it looks like you are on the brink of going out of business.
3. Lease agreement: All companies will want to see the lease for your business and make sure you will still have a place to do business during the repayment period. If the landlord doesn’t renew your lease and kicks you to the curb, you are effectively out of business and can’t repay the advance.
4. Landlord interview: All companies will perform a landlord interview and make sure your rent is current and that your lease is the same as you sent over. If your lease is late, you may still get funded but they may make a stipulation that you must pay the landlord first, with the remaining funds going to you.
Underwriting guidelines are significantly different for a merchant cash advance and much more lenient than a bank. If you need funds for your business, strongly consider a business cash advance. For specifics information go to: http://www.merchantcash.com
1. Merchant Statements: Companies will require between 4 months and 12 months of merchant statements. Your processing history will give them an idea as to how consistent the volume is and what they can expect in the next 6 to 12 months. Underwriters are looking at a number of factors including average ticket, number of batches per month, and number of charges per month. Almost all companies typically like to see a minimum of 14 batches per month although one I know of doesn’t look at this at all. So if you are a marina that processes its slip rentals on the first of every month, most won’t like it but one will. They also want to see how your volume is trending. If they look at last February and compare it to this February, how does it compare? If your volume is down 50%, that may concern them. If it is a slight decline, flat, or growing then they may be ok with what they see.
2. Bank statements: They will look at bank statements to see a number of different things. If you have a number of NSF’s, that is not a good thing. If you had a tough time 5 months ago but have since cleared it up, they will often times take that into account. They will also look at average balance to see if it looks like you are on the brink of going out of business.
3. Lease agreement: All companies will want to see the lease for your business and make sure you will still have a place to do business during the repayment period. If the landlord doesn’t renew your lease and kicks you to the curb, you are effectively out of business and can’t repay the advance.
4. Landlord interview: All companies will perform a landlord interview and make sure your rent is current and that your lease is the same as you sent over. If your lease is late, you may still get funded but they may make a stipulation that you must pay the landlord first, with the remaining funds going to you.
Underwriting guidelines are significantly different for a merchant cash advance and much more lenient than a bank. If you need funds for your business, strongly consider a business cash advance. For specifics information go to: http://www.merchantcash.com
Merchant Cash Advance...critical things you need to know!
Ok, so you are past the stage of finding out how a merchant cash advance works and into the stage of finding a place to get one. There are a lot of providers to choose from and some things you need to be aware of before diving in.
Get multiple quotes
This seems obvious but essential. This is essential because rates and terms vary amongst the cash advance providers. There are probably twenty different criteria to consider when looking at different business cash advance providers. Some have rates as low as 1.18 but require better credit, while others have rates of 1.41 but take someone with a 525 credit score. Most require you to change credit card processors while others don’t. The problem with trying to get multiple quotes is typically you only get one from each funding company. Some merchant cash advance companies represent multiple funding companies. Going to a company like that allows you to provide information once and get as many as five quotes with one click. Hopefully these quotes are assembled side by side so you can easily see the different requirements and rates of the different companies. Some companies will even offer you an instant quote. Fill out your information, press submit, and voila! Five quotes.
Warning! If someone offers you a rate that is considerably higher than others, ask why.
Sometimes the higher rate is justified, sometimes not. Companies get paid a percentage of the funding amount. That is not necessarily a bad thing because they have a vested interest in getting you the money that you need. The bad thing is they also get paid more if the factor is higher. Kind of like the finance guy at the car dealership. The question here is, if he quotes you 1.41, could you have qualified for 1.21?
What kind of deal can I expect?
Will a little advance knowledge and some due diligence, you will make yourself aware of what is possible. If you have pretty good credit, above 625, you can expect a better deal than the person with a 525 and for good reason. The company is trying to determine what the likelihood of the advance being repaid in full. If you are married to your processor and don’t want to change, there are options available to you where you don’t have to change.
So if you are in need of money then a merchant cash advance can be a good option if you have some advance knowledge of what is available. Use this information and don’t be afraid to ask a lot of questions. For specifics information go to: http://www.merchantcash.com
Get multiple quotes
This seems obvious but essential. This is essential because rates and terms vary amongst the cash advance providers. There are probably twenty different criteria to consider when looking at different business cash advance providers. Some have rates as low as 1.18 but require better credit, while others have rates of 1.41 but take someone with a 525 credit score. Most require you to change credit card processors while others don’t. The problem with trying to get multiple quotes is typically you only get one from each funding company. Some merchant cash advance companies represent multiple funding companies. Going to a company like that allows you to provide information once and get as many as five quotes with one click. Hopefully these quotes are assembled side by side so you can easily see the different requirements and rates of the different companies. Some companies will even offer you an instant quote. Fill out your information, press submit, and voila! Five quotes.
Warning! If someone offers you a rate that is considerably higher than others, ask why.
Sometimes the higher rate is justified, sometimes not. Companies get paid a percentage of the funding amount. That is not necessarily a bad thing because they have a vested interest in getting you the money that you need. The bad thing is they also get paid more if the factor is higher. Kind of like the finance guy at the car dealership. The question here is, if he quotes you 1.41, could you have qualified for 1.21?
What kind of deal can I expect?
Will a little advance knowledge and some due diligence, you will make yourself aware of what is possible. If you have pretty good credit, above 625, you can expect a better deal than the person with a 525 and for good reason. The company is trying to determine what the likelihood of the advance being repaid in full. If you are married to your processor and don’t want to change, there are options available to you where you don’t have to change.
So if you are in need of money then a merchant cash advance can be a good option if you have some advance knowledge of what is available. Use this information and don’t be afraid to ask a lot of questions. For specifics information go to: http://www.merchantcash.com
Wednesday, February 10, 2010
So you own a business and need money? Does this sound familiar?
OK. So you own a restaurant or retail business and you need funding. You walk into the bank and tell the banker your story. You tell him your credit has suffered a bit recently and your sales have declined a bit from last year but you need money. At this point the banker breaks out into laughter like he just heard Robin Williams doing his monologue at the Oscars. Maybe this is exaggeration and certainly not funny especially since the life of your business could be hinging on whether or not you get this funding. What is laughable is that banks keep saying they are lending money and business owners keep saying otherwise.
Restaurant funding is getting increasingly more difficult to obtain especially if you approach a typical bank. We have all heard in the news that banks have been given billions in bailout funds to secure and stabilize the banking system which in turn should encourage banks to lend again which would stimulate the economy. That is great in theory but the reality is that small business owners and especially restaurants can’t get financing from a bank. Recently I was told by a bank representative of a very large National bank located in N. Carolina that starts with a W, that in order to get a loan you needed a 740 credit score or higher. Compare that to two years ago when 640 was acceptable. He also told me that they would have to provide two years of tax returns and needed to show increasing sales year over year. That alone alienates about 90% of all businesses in the US. How many had an increase over last year? Two years ago you could get a loan with stated income which means you didn’t have to prove it and no tax returns. Wow, have things changed. If you are going to try the bank loan route, be prepared to bring your tax returns, personal financial statements, great credit, your first and second child, and a lot of begging. And after giving it your best shot, you too may very likely go to the mailbox in three weeks and open the dreaded letter with the word Declined stamped on it.
So what do you do if you own a business, your name is not Gates, and you need to fund expansion, buy inventory, or whatever else you do in the normal course of running a business?
There is another option. It is called a merchant cash advance or business cash advance and is becoming an extremely popular option largely due to the fact that banks are just unwilling to lend money. Not to mention the fact that it is also a much easier process. There is very little paperwork and the benefits are many. There is no personal guarantee required, no collateral, and poor credit above 520 is typically ok. Oh, and you can get the funds typically within 7 days. There are lots of differences between companies so make sure you choose wisely and don’t put your dreams on hold.
If you need retail or restaurant funding, do what many already have, consider a merchant cash advance.
Restaurant funding is getting increasingly more difficult to obtain especially if you approach a typical bank. We have all heard in the news that banks have been given billions in bailout funds to secure and stabilize the banking system which in turn should encourage banks to lend again which would stimulate the economy. That is great in theory but the reality is that small business owners and especially restaurants can’t get financing from a bank. Recently I was told by a bank representative of a very large National bank located in N. Carolina that starts with a W, that in order to get a loan you needed a 740 credit score or higher. Compare that to two years ago when 640 was acceptable. He also told me that they would have to provide two years of tax returns and needed to show increasing sales year over year. That alone alienates about 90% of all businesses in the US. How many had an increase over last year? Two years ago you could get a loan with stated income which means you didn’t have to prove it and no tax returns. Wow, have things changed. If you are going to try the bank loan route, be prepared to bring your tax returns, personal financial statements, great credit, your first and second child, and a lot of begging. And after giving it your best shot, you too may very likely go to the mailbox in three weeks and open the dreaded letter with the word Declined stamped on it.
So what do you do if you own a business, your name is not Gates, and you need to fund expansion, buy inventory, or whatever else you do in the normal course of running a business?
There is another option. It is called a merchant cash advance or business cash advance and is becoming an extremely popular option largely due to the fact that banks are just unwilling to lend money. Not to mention the fact that it is also a much easier process. There is very little paperwork and the benefits are many. There is no personal guarantee required, no collateral, and poor credit above 520 is typically ok. Oh, and you can get the funds typically within 7 days. There are lots of differences between companies so make sure you choose wisely and don’t put your dreams on hold.
If you need retail or restaurant funding, do what many already have, consider a merchant cash advance.
Looking for Business and Merchant Cash Advance
If you are in business for yourself, accept major credit cards, and have been looking for fast small business loans, there may be another answer. It is becoming an ever increasing popular alternative to a bank loan. Qualifying for a bank loan more often than not resembles the little dog in a tutu at the circus jumping through hoops. Fortunately for the dog, he usually gets a nibble of something good for his efforts. Often with a bank we are left with nothing except exasperation after spending hours meeting with the banker, filling out paperwork, calling our accountant to prepare financial statements, providing tax returns, and the list goes on to only get the dreaded decline letter in the mail four weeks later.
It could be out of convenience, frustration, or for the fact that banks are declining most applications, that merchants are turning to merchant cash advance companies for alternative funding. It can be called several things including a business cash advance but in general how they work is the same. Specifically how they work is very different, but that is for a later discussion. I will give you an example in a very general way. If your business accepts credit cards as a form of payment then you have a source of revenue that has assumedly been going on for a while and if history is a good indication of the future, it will continue. The funding company will look at your previous month’s statements. Some request four months but in today’s economy it is very common to expect them to ask for twelve months. The more comfortable they feel that you will still be around and that you can repay this, the more likely they will provide you with the funds you need.
How does it work?
The actual description that companies use is “a cash advance is a purchase today of future credit card sales at a discount”. Got it? Sure. Let me put it in simpler terms. Let’s assume you have a job making 50,000 per year but you have something that you want to do that requires cash immediately. Let’s say you need 10,000 tomorrow to put a down payment on a dream house that you absolutely have to have. You explain this to your best friend and he is willing to give you the 10,000 right now but you will have to repay him 12,500 over six months. And instead of you having to write him a check, your employer will deduct a small percentage of your weekly check that will go directly to him. All those little deductions will add up to the 12,500 you agreed to pay back. Once it reaches that total the deductions automatically stop. That is it! That is how simple in concept a cash advance is and may be a solution to your needs.
If you are at a breaking point with your bank and need a simple alternative, strongly consider a merchant cash advance and leave the dog tricks for the circus.
It could be out of convenience, frustration, or for the fact that banks are declining most applications, that merchants are turning to merchant cash advance companies for alternative funding. It can be called several things including a business cash advance but in general how they work is the same. Specifically how they work is very different, but that is for a later discussion. I will give you an example in a very general way. If your business accepts credit cards as a form of payment then you have a source of revenue that has assumedly been going on for a while and if history is a good indication of the future, it will continue. The funding company will look at your previous month’s statements. Some request four months but in today’s economy it is very common to expect them to ask for twelve months. The more comfortable they feel that you will still be around and that you can repay this, the more likely they will provide you with the funds you need.
How does it work?
The actual description that companies use is “a cash advance is a purchase today of future credit card sales at a discount”. Got it? Sure. Let me put it in simpler terms. Let’s assume you have a job making 50,000 per year but you have something that you want to do that requires cash immediately. Let’s say you need 10,000 tomorrow to put a down payment on a dream house that you absolutely have to have. You explain this to your best friend and he is willing to give you the 10,000 right now but you will have to repay him 12,500 over six months. And instead of you having to write him a check, your employer will deduct a small percentage of your weekly check that will go directly to him. All those little deductions will add up to the 12,500 you agreed to pay back. Once it reaches that total the deductions automatically stop. That is it! That is how simple in concept a cash advance is and may be a solution to your needs.
If you are at a breaking point with your bank and need a simple alternative, strongly consider a merchant cash advance and leave the dog tricks for the circus.
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