With the U.S. economy heading South for the winter, most U.S. banks have decided to hibernate from loaning money to people and businesses. If you are a business owner who needs capital to grow your business this can be an especially trying time. It seems that banks are only loaning money to companies who are not in need of it. You may have already approached your bank for a loan complete with business plan in tow, only to be turned down or asked to jump through multiple hoops; like personal guarantees or mounds of paperwork. You may have a fantastic business, but without the banks “investment” how do you obtain the funds you need to grow your company? If you are a small business who processess credit cards you may qualify for alternative funding. It is called Merchant Cash Advance and it provides business owners with different funding options.
Merchant Cash Advance works by giving you access to your future credit card sales today. These future sales translate into instant working capital to expand your business. Say you own a booming hair salon and would like to open a second location or want to to buy new equipment, Merchant Cash Advance can fund up to $150,000 to qualified applicants. The process has a high approval rate and is relatively simple. It involves providing documentation of atleast $2500 in credit card transactions for the past 4 months. Funding can be made direct in about 5-10 days. According to First Data, “credit-worthy but underserved businesses can access capital without the time, documentation, and availability issues that are asscoiated with a loan”. There is no application or fees associated with Merchant Cash Advance.
“I have had numerous conversations with clients who are frustrated with their banks”, said Tony Shap of PaymentMax a provider of Merchant Cash Advances. “There seems to be a common denominator, if you have a business that banks do not understand or is outside their comfort area, loans are not being made”. said Shap. More and more businesses are being faced with this lending dilemma in the current economic state. They need money to finance their companies growth but do not have enough money to obtain a loan. Banks are advertising loans with great terms but exactly who are these loans going to? Norm Brodsky said it best in his Street Smarts article What the Financial Crisis Means For You, “Yes, interest rates are still relatively low, but cheap debt does you no good if no one will lend to you”.
If you are facing similiar circumstances with your small business, Merchant Cash Advance can be a great tool for your business belt. When faced with business loan pains you can pull out this funding tool easily by contacting your Credit Card Processor. Merchant Cash Advance is not a loan. There are no checks to write and there is no fixed payment schedule. Repayment is made direclty to the alternative funding provider through your credit card sales. Remittance is a specified percentage of the daily credit card sales. This percentage is mutually agreed upon, and can only be changed with permission of both parties. Statements are available for viewing online 24 hours/7 days a week.
