Saturday, June 8, 2013

Merchant Cash Advance - Tough to Believe But True That You Are Only Three Easy Steps Away From It

It is much easier and faster to get a merchant cash advance than it is to get a bank loan. Bank loans require loads of documentation, proofs, guarantees, and most importantly, time; and time is perhaps the most valuable resource in today's' cutthroat competitive environment. Merchant cash advance providers work quickly. They do not need extensive documentation and it is available to the business in a week or two. If the provider and business owner have done business before, the process is further expedited and the advance generally is available within 72 hours. Time is critical for a business facing a cash crisis. It can use the funds to immediately pay off debts and invest in business growth. There are three steps to getting a merchant cash advance: Step1: Setting up an account with an approved credit card processor A merchant cash advance provider loans money in exchange for future credit card receipts of the business. The providers have contracts with many credit card processors. Business applying for such a loan must have an account with one of these credit card processors to be considered for an advance. If the business does not already have an account with one of them, it can apply for it. Step 2: Approval of application After opening an account with the approved credit card processor, the business will submit an application to request an advance. Basic information such as the monthly credit card receipt statements are submitted to the merchant advance provider. The paperwork is minimal. The provider will verify the businesses' financial standing, especially the length of time in business and the monthly income. Step3: Signing the contract Once the provider approves the application, the business owner will receive a contract stating the amount of the advance and the percentage of monthly credit card sales that the loan provider will receive as repayment. The business owner should read through the contract carefully to avoid surprises. Cash is released to the business owner once the signed contract is submitted to the provider. Details of the merchant cash advance contract The contract between the merchant cash advance provider and the business owner is that between a buyer and seller. The business is selling its future credit card receipts at a discounted rate to the cash advance provider in exchange for the cash advance. The contract contains the following details that can be used to calculate the overall cost of the advance to the business. the advance cash payment the business owner will receive as a loan the total amount of future credit card receipts the business is selling to the merchant cash advance provider the percentage of credit card sales the MCA will receive from the business on a daily basis contingency terms such as penalty for non-payment, etc. Merchant cash advance contracts must be scrutinized before signing on the dotted line to avoid misunderstandings later. A business that has adequate funds at the right time can grasp opportunities boldly and increase its profits. A merchant advance makes that possible by providing funds easily and within a short time. Partner Us Health and Fitness Computers and Technology Adventure Travel Leadership Improvement Financial stability Forex Forum News and Social Lifestyle Health Care information Health Insurance Plan car insurance online Personal Care Product Real Estate sites 21st Century Home improvement Contractors House Payday Loan Medical Health Insurance Bad Credit Personal Loans Wedding Ideas Finance Company 21st century toys Trusted Health Care Products Trusted Product Review Weddings Plan Business Solutions|Business Summit Automotive Guide groovepress Health Product Review Health Care Team Education Guide Homeschooling Tips Trusted Advertising Place Home Loan Learning Center Reviews of Car Insurance Companies e-world-concept konyaku-miniloto bbfz pharmaseed newbookbuzz kanadareise highclassreferral zaheerzaidi live2times loans-poor-credit ijce pediatricimaging baixargratis bahnhofcenter examensmodule adultrentals icc2012 jewelrybuyers learning-complexity antychryst beyour-shelf chappyadams corporatepartnersinc ctgblog madtownthrowdown nisb ukvotingexplained dynamitelyrics www.world-around.us freedomainconcepts artstation antiaging-medicine arlesheim-dom dynamitelyrics 1998article cineorly hathmore therawfoodfamilyisland livesportromania spywareforum fethullahgulenschools appler handsontriangle.us coryat.us

A Merchant Cash Advance Guide

How merchant cash advances work? A lender will purchase a small percentage of your future credit card sales, until the payback is completed and will give you upfront the money your business needs. Often times the business owner will be approved even with a less than great credit history record, making a merchant cash advance a top funding choice. How do the lenders make money? Funding charges can widely vary, and that's not just from one lender to another, but from one cash advance to another. For example, the payback on a $10,000 cash advance could be as low as $11500 or as high as $14,000 dollars. Even though there is a fixed payback daily percentage, and because of that, theirs is no fixed monthly payment, you pay as you sell; the payback factor varies depending on your business sales and the amount of money asked for. If your business is doing well and sales are good, the advance lender collects the money sooner making the payback amount rather high. Since there is no time limit on paying back the loan, the annual rate will decrease as the payments will be extended over time, although the lender typically forecasts a rather short term for payback, it could usually take less than a year. There are no questions that the merchant cash advance cost for this kind of unsecured funding is going to more expensive than the cost of a traditional loan, but if you understand the advantages of a cash advance and know how hard it would be to qualify for a bank loan, you will find that a merchant cash advance is a great option. Often, business owners interested in funding programs like this may have a less than perfect or even bad personal credit history. They may have credit history records like past tax issues, a list of delinquencies, collections, liens or even judgments that would be an automatic red flag for a traditional bank loan. Instead, the merchant cash advance industry is here to help businesses that can't qualify for traditional funding methods. The lender risk: There is a rather high risk when providing these types of unsecured funding options (hence the higher cost to the business owner for the money), but they use advanced funding models to determine the possible future credit card sales. They also offer the cash advance with fairly short payback terms to help counter the risk. Although the approval is much easier than it is with most bank loans, few cash advance lenders will lend to new merchants or start-ups without a history of credit card statements. Even less lenders will approve amounts larger than what the business can predict to earn from credit card sales in a year. The merchant cash advance lender takes all of the risk, but since it is paid out of projected future sales, it is typically a risk worth taking. Seasonal businesses that need cash flow to move them through slow seasons or merchants, who have an unexpected low season, may find a need for a cash advance until business picks up. Merchant cash advance lenders say that slow businesses are not the only merchants interested in this funding method. Most types of businesses are often ignored by traditional banking institutions. There are many times when owners of healthy small businesses could use cash flow or working capital to help build their businesses but don't qualify for the traditional bank loans. These include franchise owners who have exhausted their personal savings to purchase their franchise and would like to open another one; merchants who can buy bulk inventory at discount rates or move into a new, more efficient location; expansions; new equipment; or simply the desire to move forward on a great new opportunity. Partner Us Reviews of Car Insurance Companies Auto Owners Insurance Company payday loans

Merchant Cash Advance - Emergency Cash Loan

In merchant cash advance procedure, the lender purchases a small percentage of the future credit sales till the time the payback gets completed. This cash advance is a popular choice with the merchants, as it does not require any sort of credit check. Generally merchants who are not able to get bank loans approved for their businesses opt for these cash advances. A merchant cash advance is a great option as it is generally very difficult to get a loan approved from a bank or any other institution for business purposes. The payback funding charges can vary from one cash advance to another. Generally, these charges are highly negotiable and the interest rate for the amount depends solely on the lender. For example, at times the payback on a $5000 loan could be anywhere between $6000 to $7000. Some Features • There is no fixed monthly installment for the merchants. They can keep returning the amount depending on their daily sales. If they sell well, then they would be able to payback in shorter time duration than if they are unable to run their business profitably. • There is no time limit to pay back the loan amount, thus decreasing the annual rate. Generally, a lender gets back his amount in less than a year. • The merchant cash advance is considered a great option, as it would be very difficult to qualify for a bank loan otherwise. Though the funding does turn out to be more expensive but the other advantages associated with this loan certainly makes it rather popular with merchants. • This cash advance does not consider the credit history of the merchant. This means that even if the merchant has a past recording of tax issues, collections, judgments or liens, his loan amount is easily granted. The lender risks a lot of his money funding these unsecured loans. It is due to this reason that the interest rates for such merchant cash advance are much higher than the traditional loans. The lenders can determine the future sales by using the advance-funding models. Cash advances with a short payback term are also offered by the lenders to counter the risk involved. The approval for these loans is much easier than applying for the other bank loans. Generally, these advance lenders lend without checking the credit details of the merchant. Still there are some lenders who do ask for the credit card statements of the merchants. All merchants who do not have any other funding options available can easily consider a merchant cash advance for their businesses. Partner Us Reviews of Car Insurance Companies Auto Owners Insurance Company payday loans

Can a Merchant Cash Advance Help My Retail Store?

If you own a retail store, and are wondering if a merchant cash advance can be beneficial, the answer is yes! Merchant cash advances are formulated specifically to accommodate retail business owners.
Lenders are able to provide upfront sums to merchants in exchange for a small percentage of the business' future credit card sales. It may be in a retail store owner's best interest to take advantage of this opportunity, as other types of businesses are not eligible to receive merchant cash advances, since they do not process credit card transactions regularly.
The way it works is simple. You (the retail business owner) complete an application. Most likely, you will need to submit up to six months of your business' most recent credit card statements. Lenders review these statements, and based on those numbers they are able to come up with an amount that they are willing to lend.
They will also determine what percentage of your business' credit card sales will go towards the repayment of your merchant cash advance, and the flat rate that you will pay to receive the money. This flat rate is not like a bank's interest. Instead, you pay a flat fee for the money that does not increase depending on how long it takes to repay the advance.
Every time your business makes a sale, your merchant cash advance is one step closer to being paid off. There is no need to visit the lender to drop off a payment, mail a loan payment, or make online payments. The automatic payment process allows your retail store's normal business operations to support your repayments.
As a retail store owner, there are probably many things that you could use a little extra money for. Maybe you want to expand your store, purchase billboard ad space, or hire more employees, the choice is yours. You can choose what is best for your business and finance your business venture with your merchant cash advance.
So what happens if you get a merchant cash advance, and later on down the line, you decide that you could use another? To the retail owner's advantage, most merchant cash advance lenders offer borrowers the opportunity to renew. Some even allow borrowers to renew their accounts after only 60 percent of their previous advance has been repaid. Usually, the renewal process is even faster than the process of receiving the initial merchant cash advance, because your information is already on file. Not to mention, even if it's your first time applying, some lenders can approve your advance in as little as 48 hours after receiving an application, and can fund your account in as little as seven days after approval.
Why not consider a merchant cash advance for your retail store? With a merchant cash advance, you can get fast funding for your business without collateral or an excellent credit score.

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Wednesday, May 22, 2013

How Can A Merchant Cash Advance Help A Smart Business Owner

Merchant cash advances help business owner's open doors for better types of funding opportunities. The business cash advance industry is climbing at a continuous rate. This ever increasing growth is because traditional bank loans are not meeting the demands of small business owners. Business cash advances are a unique funding method. It's a purchase of future credit card sales, not a loan, so we have to use specific language consistent with purchase of future credit card sales, like payback rate and discount rate instead of commonly used interest rate on bank loans. Merchant cash advances are a lot like factoring but are based on a sale that hasn't happened just yet. A business cash advance lender gives business owners a sum of cash advance up front. In exchange, the business owner agrees to pay back the principal amount plus the fee, by giving the lender a daily percentage of their visa and master card sales until the payback is completed. The daily payback percentage won't be higher than 10% of daily gross sales, the daily percentage is based on the monthly credit cards sales volume and the amount of cash advance required. The payback time-frame is structured for a 6-9 months term, but it's not fixed, and there won't be any penalties if it takes longer. Business owners usually must switch the credit card processor because the advance is paid back automatically as a percentage of each batch's proceeds, but the rates will be the same if not better. Just a small number of merchant cash advance lenders don't require the merchant to change their credit card processors company. Most time this won't be a problem at all since the rates will be matched. Business cash advances differ a lot from the traditional bank funding programs. In essence a merchant cash advance lender purchases a small percentage of future Master Card and Visa sales, and the business owner pays back this as a daily percentage of such sales. Obtaining cash from the bank can be difficult for most business owners, but particularly retail businesses, restaurants, store franchisees or seasonal businesses. These merchants mostly use credit card processing, making a merchant cash advance program a great funding opportunity for them. What are some of the benefits? The money is available much faster than it is with a bank loan. Unsecured merchant cash advances are specially a great option for retail and restaurant merchants, not only because these types of businesses can hardly be funded by the traditional bank, but also because of the immediate liquidity and simple process. Many merchant cash advance lenders advertise that the money will be available in as fast as 10 days, and unlike a bank loan that have a fixed interest rate, as the amount due and due date are fixed each month, no matter if your sales drop. Instead, with a merchant cash advance the payback comes from future credit card receivables, not straining your business cash flow. Fast merchant cash advance programs are cash flow friendly, during seasonally slow periods specially. Traditional bank loans require a fixed set of payments every month, whether the business has made a sale or not. But if you choose a merchant cash advance, payments are calculated as a percentage of credit card sales, and if the sales are growing, the re-payment could be quicker, but if the business owner experiences some interruption or sales drop in the business, the payments will drop with it. Another great advantage of a merchant cash advance, is that the business owner won't risk he's personal assets, because there's no collateral required. Partner us Health and Fitness Computers and Technology Adventure Travel Music and Entertainment Leadership Improvement Financial stability Forex Forum News and Social Lifestyle Health Care information Health Insurance Plan car insurance online Personal Care Product Real Estate sites 21st Century Home improvement Contractors House Payday Loan Medical Health Insurance Bad Credit Personal Loans Wedding Ideas Finance Company

Merchant Cash Advances - A Small Business Lifeline for 2008

When a business needs funds quickly, a merchant cash advance offers unlimited flexibility. Also, it's easy and exceptionally fast. Cash in your hands in 5-7 working days. 80% of all small businesses fail during the first year. 92% are unable to get traditional financing from banks. Restaurant and retail operations, or any business that accepts credit cards as a form of payment, can now get a credit card factoring cash advance on future credit card sales. And many smart companies are using that option to grow or just stay afloat. There are as many different needs for a merchant cash advance, or credit card receivables financing, as there are small businesses operating today. For example, a restaurant owner who can't quite make payroll may survive the crisis and keep his doors open with a merchant cash advance. A mom and pop hardware store could suffer a flooded basement or damaged piece of equipment or loss of inventory and need to make an immediate and often substantial expenditure. Even when these extra expenditures are covered by insurance, there might be a lag time until reimbursement. This is where a credit card receivables advance can become a small businesses lifeline. Then, there's just the unpredictability of running a business on a day to day basis. Routine occurrences, like a slip in sales because of bad weather or a shutdown during a power outage or road maintenance, can cause a significant cash crunch. Small businesses may also need a quick influx of cash for a growth opportunity. If a hair salon is looking to expand its services and become a day spa and the space next door suddenly becomes available, the owner will need money to renovate. With a cash advance the owner could have the needed funds in hand in just 5-7 working days. The advance amount the merchant can receive is determined by calculating the company's average monthly Visa and MasterCard credit card sales for the past six months. The level of financing ranges from $5,000 to $1,000,000 per location. The loan amount is typically 100 percent to 150 percent of the average monthly Visa/MasterCard volume. Cash is also used as the basis for the loan in certain situations, such as diners, pizza places, and sandwich shops. The bottom line: The merchant's monthly payment should be in the neighborhood of 10 percent of his total monthly volume, including cash, and Visa/MasterCard. Loans generally average $35,000-$50,000, and the loan is paid back within 5-12 months. After the merchant pays back 50% of the advance, he has an opportunity to renew the arrangement again. Payment is very simple. The funder will work through a credit card processor to draw money from actual profits as payments are made using credit cards. Or, the merchant cash advance funder may draw his payments directly from the merchant's bank account once the credit-card payments are deposited there (ACH Withdraw). A merchant cash advance can be a great way for a small business to get the cash it needs to grow, or to get through a particularly difficult time. Will you need a cash advance in 2008? Look into this option now before you need the funds. Merchant cash advances are a great "emergency cash" plan as well. Be prepared! It's your business. And for many small businesses, it may be the only source of funding that will help it survive. For a free- booklet, please log onto "10 Ways to Get Working Capital". Dan Ollman is President of Crown Financial Services. Crown Financial Services is a proud member of the American Cash Flow Association, Las Vegas Chamber of Commerce and the Las Vegas Better Business Bureau. They provide working capital to businesses by purchasing a small portion of their future credit card sales. Crown Financial Services helps you turn your future credit card sales into cash. We provide small business cash advances for merchants who currently have credit card processing. You can get a cash advance on future credit card sales with a merchant account cash advance loan. Merchant account financing, also called credit card receivable factoring, is an excellent alternative to restaurant loans and other business loans.

Tuesday, May 14, 2013

The Merchant Cash Advance

Opens Doors to the Financial World for Many Retailers. The merchant cash advance industry is growing at an astonishing clip. This growth is because traditional banks are not meeting the needs of small businesses. This product is very unique. It's a purchase of an asset, not a loan, so we have to use specific language consistent with a purchase of an asset, like retrieval rate and discount rate instead of interest rate. A lot like factoring but it's of a sale that hasn't yet happened. A cash advance provider gives merchants a lump sum cash advance up front. In exchange, merchants agree to pay back the principal and fee, by giving the company an agreed percentage of their credit card sales until their balance is zero. This percentage is between 12%-24%. The payback time-frame is only 5-12 months. Merchants generally must use the providers' credit card processor because the advance is paid back automatically as a percentage of each batch's proceeds. A small number of merchant cash advance companies do not require the merchant to change credit card processors. So if this would be a problem, make sure to ask the merchant cash advance company you are thinking about working with. Cash advances are very different from traditional funding programs. In essence merchant cash advance providers purchase a small percentage of future MasterCard and Visa revenues, and the merchant repays this as a daily percentage of those revenues. Getting cash from traditional financing institutions can be difficult for some businesses, particularly retail, restaurant, franchisees or seasonal businesses. These merchants most heavily use credit card processing, so merchant cash advance programs offer a number of benefits. Why Do Merchants Like It The cash is usually available more quickly than it is with traditional loans. These programs appeal especially to retail and restaurant merchants not only because these types of businesses can rarely get traditional funding, but also because of the immediate liquidity. Most cash advance providers advertise that the cash can be available in about 10 days. Unlike a loan with a fixed rate of interest, amount due and set due date each month, with merchant cash advances the money is paid back as credit card receivables come in. Merchant Cash Advance programs are cash flow friendly, especially during seasonally slow periods. Traditional loans and leases require a set payment every month, whether the business has made a sale or not. Because payments are calculated as a percentage of sales, if sales are growing, the amortization could be quicker, but if the proprietor experiences some interruption or downturn in business, the payments will be lower. In most cases, business owners put up no personal collateral and make no personal guarantee. How Providers Make Money Finance charges can vary widely, not just from one provider to another, but from one advance to another. As an example, the range of financing on a $10,000 advance could be as low as $1500 or as high as $4,000. That's a 60% difference. There is no fixed interest rate; the effective interest rate varies depending on the business. If the merchant's business is doing well and sales are up, the advance provider collects the money sooner and the interest rate is rather high. Since there is no time limit on paying back the loan, the effective annual rate decreases as the payments are extended over time, although the cash provider typically forecasts a fairly short period for payback, usually less than a year. There's no question that the merchant's cost for this kind of financing is going to come in more than a conventional loan, but it's pretty much a foregone conclusion that a conventional bank will reject this merchant for their much needed loan. The merchants interested in a program like this may have a sketchy or distressed credit history. They'll have things like past tax issues, a list of delinquencies, collection matters, liens or judgments that would be an automatic red flag for a conventional bank. The merchant cash advance industry caters to businesses that can't get traditional funding. A Risk Worth Taking There is a risk to cash advance providers and a fairly high risk (hence the higher cost to the merchant for the money), but they use sophisticated models to determine the future likely credit card purchases. They also offer the cash with relatively short payback periods to help mitigate risk. Although approval isn't as difficult as it is for most bank loans, few cash advance providers will approve new merchants without a history of credit card transactions. Even fewer will approve sums larger than what merchants can reasonably expect to earn from credit card transactions in a year. The provider of the merchant cash advance takes all of the risk, the risk is high, but since it is paid out of projected future sales, it is typically a risk worth taking. Seasonal businesses that need cash to carry them through lean seasons or merchants who have an unexpected downturn in business (say because of road construction, building repairs or extended illness) might find a need for a cash advance until business picks up again. However, merchant cash advance companies say that ailing businesses are not the only merchants interested in this kind of program. Many types of businesses are often underserved by traditional funding institutions. Take for example a restaurant, it could be a very successful business, but a traditional bank wants to see tangible assets. Perishable foods or used restaurant equipment just won't make the cut, even if that restaurant is packed every night. There are many examples of times when owners of healthy small businesses could use cash to help build their businesses but can't get the traditional funding necessary. These include franchisees who have exhausted their savings to purchase their first franchise and want to open a second one; merchants whose competitors have closed and have the chance to buy their competitor's old inventory or move into a new location; expansions; buyouts; or simply the desire to move quickly on a perceived new opportunity. Dan Ollman is President of Crown Financial Services. Crown Financial Services is a proud member of the American Cash Flow Association, Las Vegas Chamber of Commerce and the Las Vegas Better Business Bureau. They provide working capital to businesses by purchasing a small portion of their future credit card sales

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