Business won’t wait for you. Can you afford to wait for funding? In this economic crunch, Banks are tightening up their entire funding processes, making it difficult to acquire loans for small businesses.
Hence there is only one financing alternative for small businesses when expansion or renovation is the only thing on your mind. Read More…
From the category archives:
Merchant Cash Advance
11
Apr
23
Feb
How local Small Businesses can grow with Business Cash Advance influx in 2012?
by admin in Merchant Cash Advance
With the beginning of every new year small business owners ask themselves how they can grow and stabilize their local ventures against big box vendors and national enterprises. Questions they ask themselves are
What are their new business plans to achieve this year?
What will be their marketing and growth strategy for the new year?
Should they grow their businesses geographic footprint?
Should they invest in new hardware / equipment to enhance productivity?
Can upgrading their existing location help in sales?
Read More…
25
Nov
When Small Business needs financial help, it is the Merchant Cash Advance which comes and provides necessary funding and that too in a record shortest possible time. This means Merchant Cash Advance (MCA) is always at your service—Small Businesses.
The most popular of all the financial institutions lending money to businesses in financial troubles is the Merchant Cash Advance, the reason behind this popularity is the time MCA takes to sanction the loan, (that is less than 3 days) and the number of options it provides you to utilize the loan. It really comes to the rescue of Small Business in financial troubles. This helps the small businesses to prosper and improve their business activities in the long run.
In the prevailing economic environments no businessmen can afford to tolerate the tough and strict restriction laid by the banks and some other financial institutions for obtaining loans. The banks are also known for taking long time,( over 90 days) to sanction the amounts, in most cases the amount sanctioned is far less than the amount demanded by the entrepreneur.
Merchant Cash Advance is a process based on future likely income of the borrower. The businessmen qualify for the loan based on two factors, firstly the financial bank statements of last few months and secondly the credit card history of the business. The credit score dictates the maximum amount that can be sanctioned, bad credit score has no bearing on the sanctioning of the loan. The pay back of the loan is based on the mutually agreed percentage of receivables (Through Master and Visa Credit Cards) of future sales/ income of the business.
This is an unimaginable facility for the businessmen. There is no tension of fixed monthly installments; there is no worry of any time period. More the income earned by the business in a particular month, higher the amount of installment, less the income less the payback. So the sale and the income decide when the loan will be paid back in full.
The payback can be also be worked out on daily basis, working on the same system. The businessmen are at ease and can concentrate free of worries on other important issues related to the business. The credit card Scratch Machines plays an important role in the process. The lender simply informs the credit card company the percentage of credit card sales to be transferred to him on daily or monthly basis, the amount is automatically remitted in the lender’s account, a facility that safeguards his cash given by the lender.
The majority of businessmen who are enjoying the facilities of Merchant Cash Advance are the one who were denied the loan by the banks for not meeting their prerequisites laid down to qualify for the advance, such as bad credit history, type of business, not having a collateral to offer and other requirements.
Merchant Cash Advance does not lay any such conditions or prerequisites on the loan seekers. In the contrary they tend to provide the required cash in as less time as possible provided the nominal paper work is complete.
24
Nov
Forget about the Financial Worries & Expand Your Business
by anderson in Business Loans, Merchant Cash Advance, Small Business Loan
A good and a successful entrepreneur is the one who is continuously involved in the process of improving his business for more income and better profitability. He plans to compete with the best in his field of business; therefore his business remains at a risk of failing partially or completely. It is a fact that all entrepreneurs are risk taking persons, those who make an endeavour to open a new small business enterprise are the one who are most vulnerable to the risk.
New Small Businesses have a history of not lasting for a long time and majority of them end up in closing down due to failure. This means new small businesses have a very high rate of failures; therefore any investment in new small businesses is a very high risk investment.
The more lucky ones are those who survive the first few hard and tough years and then gallop on the road to become a greater revenue earning enterprise. It is for these small business enterprises to plan an expansion and improvement in their operations. They must plan to utilize the facility of Small business Loans and make there plan to succeed. Business Cash Advance can sanction cash up to the tune of $250,000 in lump sum and provide impetus to there progress in quick time.
If one glances through the newspapers or browse through the classified pages of the website “Business.com, you will be surprised to learn the number of “For Sale” businesses advertised. These for sale businesses are available all over the nation. This is a best opportunity for those businessmen who are successful and now planning to expand their businesses, especially those in the business of restaurants, bars, salons hotels and motel etc.
To implement the plan for expansion of the business by working on the option of buying a ‘for sale’ location, Business Cash Advance is the most appropriate source of obtaining the required capital. Business Cash Advance provides the required capital as per the requested amount, (not exceeding $ 250,000) and within the time frame of the deal or in maximum of 3 days.
Business Cash Advance is a powerful source to provide boost and impetus to your Businesses. It is a source of immense energy for the future of any entrepreneurship
18
Nov
Merchant Cash Advance Verses Small Business Association Loans
by Liz in Business Loans, Merchant Cash Advance
Small Business owners now have the choice to select any of the two openings to obtain loans for their businesses. Small Business Association (SBA) Loans, the Merchant Cash Advance (MCA). The present economical recession has forced the banks to lay strict conditions for sanctioning of loans. These restrictions will have a negative effect on the businesses requiring capital to run their affairs, especially when the cash is urgently needed for expansion, repairs, acquiring of necessary new appliances/ equipments or for payrolls.
SBA loans have become difficult to get sanctioned because of the following prerequisites:-
- If the business is well established SBA lenders will ask for:-
- Collateral available that can be mortgaged with the bank.
- Record of your existing liabilities.
- Installment schedule.
- Any Balances of previous loans.
- In case of a new business to be started SBA lenders will ask for:-
- Detailed Business plan.
- Prediction of cash flows on monthly basis, covering a period of minimum of two years.
- Financial statements.
- Credit/Debit Cards will be analyzed.
- Personal loans you have on your account.
- Your liquid assets and your Property holdings.
- Proof of your tax returns and your tax documents
- SBA is only a loan facilitator.
- Banks have to be convinced that loan will be returned in full.
- Repayment plan once approved cannot be changed or renegotiated, in case of default/ breach of plan you will be FINED heavily.
- In case of breach of terms your collateral/ assets will be auctioned by the bank to recover the outstanding loans.
What prerequisites are to be met in case of applying for loans from Merchant Cash Advance? The MCA just wants the following TWO documents irrespective whether the business is an established or a new one:-
- The period of business in months.
- Credit/Debit Cards processing and Receipts per month.
Repayment plan is based on Credit Card receivables per month, an agreed percentage of your income is deducted for payment of installment of the loan. Lower the income of the month lower is the installment, higher the income of the month higher the installment of loan. Merchant Cash Advance is friendly, flexible, less risky and a superior choice of financing the business.
Remember your business based on a loan through SBA is on a risk of collapsing in case of non-payment of installments or you becoming a defaulter, where as in case of Merchant Cash Advance the income does suffer a little, but the risk of business collapsing is negligible.
MCA has a much higher rate of approval as compared to SBA based bank loans
Now it for you to decide as to which option to go for, the SBA based loan or an advance from Merchant Cash Advance Loan.
