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As banking
has tightened its credit standards and less money is out there,
small businesses have to find alternative ways of obtaining credit.
In the past, the increase in real estate prices and easy credit
was a way many small businesses were obtaining capital. Due to
the real estate downturn and problems in the banking community,
this is no longer an alternative for the small business. An alternative
to this cash flow and/or working capital problem can be resolved
in the business cash advance or the merchant cash advance area.
This industry is based upon a different set of standards which
we will describe below..
First of all,
what is a cash merchant advance? .An established business in existence
for one year or more with visa and mastercard sales can qualify
for a loan or a merchant cash advance on their past activity up
to $150,000 from a financial institution and $750,000 or more
per location from a true merchant cash advance company. The monthly
average of their visa and mastercard sales x 1.5 will be a qualifying
amount that the lender will fund up to. Here is an example for
you, assuming your business averages monthly $50,000 for visa
and mastercard sales over the last year. The financial institution
will use that $50,000 x 1.5, therefore your lending base will
be $75,000 for this example. Pretty neat, bet you didn't know
these programs were even out there.
For this advance
program discussed today, this program allows you to obtain 1.25
x your monthly average of your master, visa, discover and american
express cards. This program is buying a piece of your future cards
based upon your past performance. The repayment amount is a fixed
percentage of what you collect subsequently. Additionally, this
program will advance up to $750,000.
Here is an
example of this program, lets say your average monthly average
credit cards sales average $100,000 per month and the advance
company oks a advance of $125,000. They will apply a percentage
to this amount say 15% and after funding, every credit sale you
collect they will be paid 15%. If you have a great or a bad day,
the percentage is always the same. This process will continue
until the amount is paid off. Once you pay off 80% of the advance,
you can apply for another advance.
This program
isn't Fico driven which is a reason many companies can't qualify
at the bank today. This program doesn't require additional collateral
and personal guarantees. Usually, these cash advances are paid
off in months not years. This program doesn't require personal
income tax returns and other asset documentation...There are no
application fees and/or this advance doesn't effect your current
working capital line at a financial institution if that applies..
One thing you should be aware of, this merchant cash advance company
will require you to change your current processor. They will also
guarantee to beat the rates you are paying at the present time
and offer other perks that they will assist you in any resistance
you might have....
Another benefit
to this program is that you can use these monies for whatever
purpose you had in mind. Whether it is expansion capital, pay
off old bills, debt consolidation, new equipment acquistions,
buying new inventories, etc it is your decision..
The types
of industries this business cash advance program covers are :
independent owned gas stations, gas stations with a convenience
store, service stations, gas related and accessories stories,
gas stations with related auto repair shops, gas stations with
attached car washes, full service gas station with a convenience
store, discount gas station with a convenience store,
The requirements
to get this program going is for the applicant to fill out the
cash advance application and fax the summary page of your last
six months merchant statements to the merchant cash advance company.
The approval
process takes as little as 24-48 hours and the funding within
7 business days
Happy hunting
for your money....
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J.M Luna has
over thirty years experience in the financial field. This includes
accounting and taxes, leasing, hard asset money and commercial
loans. U.S Corporate Capital Leasing assists the startup and the
seasoned business for financing in all different types of industries.
http://www.cclgequipmentleasing.com/business-cash-advance.htm
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