|
As the economy as weakened, many businesses have a need of a
cash infusion and/or working capital to get them through these
hard times. 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 : nightclubs, bars and nightclubs, discos, restaurant and
bars, supper clubs, taverns, video and poker bars, dancehalls,
bars, and other related alcohol establishments.
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....
------------------------
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
|