There is a new alternative to the high-interest business loans that banks so graciously offer the drowning small business merchant. No longer do you have to prove you don't need a loan in order to qualify for one. No more searching attics, pulling old hard drives, or tracking down the records, statements and elementary school teachers in a gruelling attempt to satisfy all the requirements to even be considered for a loan, only to realize in the end that all your efforts were for naught. In fact, 90% of small businesses do not qualify for a business loan.
Since the downturn in the econmomy, banks haven't been lending. Then, the big bailouts and the go ahead from the "Powers that Be" to release funds and get money circulating back into the economy again, but not for the little guys.
According to a recent article on CNNMoney.com, titled "A grim year for small business lending"..."The SBA Loan volume plunged 36% in 2009 as banks slammed their vaults shut to small businesses."
In an October 13, 2009 New York Times article, PETER S. GOODMAN stated that "Lenders are waiting to take losses in commercial real estate and credit cards before loosening up money."
Well, move over banks, investors and loan officers! Enter Merchant Cash Advance companies. For a no-interest, no-waiting, hassle-free avenue to immediate cash capital, all merchants have to do is provide the last 3 - 4 monthly Visa and Mastercard receivables statements. Most require that the business have at least 3k+ per month in CC receivables, but there are a few who claim to advance for less than that.
The amount of the advance is based on the average CC receivables, and repayment from a percentage on the FUTURE Visa and MasterCard receivables. Since repayment is not based on a fixed schedule, nor secured by any collateral, or promises by the merchant, THE LENDER DOESN'T GET PAID UNTIL THE BORROWER DOES! This leaves the merchant in control over cash flow, especially during slower months.
********BEWARE OF CASH ADVANCE PROVIDERS WHO REQUIRE:********
APPLICATION FEES --- THERE ARE NO APPLICATION FEES!!
PERSONAL GUARANTEES OF REPAYMENT -- IT IS NOT A LOAN!!
COLLATERAL -- AGAIN, THIS IS NOT A LOAN
PURCHASING OF THEIR CREDIT CARD PROCESSING EQUIPMENT OR SERVICES--- THIS HAS NOTHING TO DO WITH A CASH ADVANCE. IT DOESN'T MATTER WHO YOUR SERVICE OR EQUIPMENT IS WITH
It seems Obama is a day late and a dollar short in finally recognizing what a big part small businesses play in our economy's financial status. Someone else found a better way and the small business merchant is all the better for it! Go get your capital today!! You deserve it!
