Tag Archives: business

Guaranteed merchant cash advance is now a reality.

February 15, 2018   Fast Loan

Merchant cash advance is a form of receivable financing. It is not a loan! In fact due to the cost of the money if it were a loan the only state it would be legal is Nevada. The way it works is that a merchant takes an amount of money and agrees to pay back a set amount, the amount the merchant pays back ranges from 1.33 to 1.49 or for every $1000 you will pay back between $1330 and $1490. Payments are made through “split batching” a process that takes a portion of each days credit card purchases to pay off the set amount owed. The obvious benefit of this type of system is no monthly bills and in fact this is not a credit liability and is not counted in the income to debt ratio.

First Merchant Funding has pioneered a new program to fund those businesses whose owners can’t even qualify for the relaxed underwriting requirements of regular merchant cash advances. With this new program only the merchant’s monthly statements are used to determine eligibility. The amounts available are not aggressive at first but after completing a cash advance successfully that merchant is offered more money on subsequent advances.
Merchant cash advances are not new; this type of funding source has been around for many years. While these funds are expensive they have several advantages over conventional loans. In general lenders want to see the Five “C’s” 1.) Capacity to repay, 2.) Character, 3.) Good Loan Condition, 4.) Capital in his/her business, and 5.) Collateral. It is not unusual for banks to require additional security for new businesses or business owners with less than perfect credit, and not unheard of to put a second mortgage on the family home to offset the risk to the lender. Merchant cash advances are completely unsecured; however, you do sign a personal guarantee. Historically this money has been very attractive to the restaurant industry. The First merchant program is exceptional in that it removes any barrier a business may have to these unsecured funds. Please do not think in terms of the traditional business loan, since the underwriting requirements are almost completely different and not present in the merchant cash advance.
Banks will always look at your past activities and current credit in determining your eligibility for a loan, First merchant funding provider focuses on your past, present, and future credit card transactions. The target market for these loans are usually business owners whose credit score is less than perfect. That’s why I’m so excited to be writing this since a bad credit score is not a deciding factor in qualifying you. This is the main difference between this product and a traditional business loan. Furthermore, Merchant cash advance dose not require extensive documentation and oftentimes all you need is 4 months worth of statements, a completed application, and the phone numbers to your landlord.

Thus, you will find it much easier and faster to get a merchant cash advance than a bank loan, usually 24 to 48 hours compared to what could be months with a bank. Pre-approval are obtained within 1 hour. For most business owners, the approval rate of a business loan is very low even with SBA guarantees especially if you don’ t have excellent credit.

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Your Credit Options with A Private Lender Even With Bad Credit

February 13, 2018   Personal Loan

There are many options that you can explore if you have bad credit. Most people turn to the banks when they want a loan for their business. The thing is, if a person has a bad credit rating or bad credit score it can be very hard for them to get the loan that they need. A lot of banks will turn people down just because of having bad credit history. Some people end up getting frustrated and they often times feel as if they want to stop because of it. However, there are now other options available for people that have bad credit.

Information on a Bad Credit Private Lender

A private lender is someone that has a lot of money and they are trying to look for a business opportunity that can help them. They often times do not care about bad credit scores. They are mainly interested in how they can make money and that’s why they don’t care about a bad credit score.

When business plans seem to be very good and promising sometimes they might be willing to help out and invest in the business. When they do this they won’t demand that you give them ownership with the business. They will only want to be a business partner and help out with the money. The interest rate that they have might be like the banks interest rate but the repayment plans might be relaxed a lot more than what it would be with the bank.

Be careful of the processing fee that some people might advertise on the web. Some websites ask for a fee that must be provided for in advance but the interest rates could be very high and the repayment period might be very short so it’s almost like a trap. Some of them even force other people to pay it back right away.

A bad credit private lender that is true won’t have high interest rates and often times will try and work out some kind of legal agreement that helps with sealing the deal. However, it can sometimes take a while before locating a bad credit private lender that is true and not one that is illegal because they often times will keep a low profile.

Approaching a Bad Credit Private Money Lender

Many of the high profile private lenders keep a profile that is low and will only be interested in contacting people further if the business plan is a good one. It can sometimes be very difficult to approach them because of this so here are a few tips to help when it comes time trying to talk with them.

A business broker is almost like the link between a private money lender and the people that might have a business plan that seems promising and needing money. A business broker can sometimes help with setting up meetings so you can reach the private lender.

There are also advertisement private lenders that can help out the business and most of these can be found with just researching and looking at the advertisements in the classifieds. Sometimes a business just needs a push with advertising in order to jump off into success.

Another place to look into would be to check in the conventional finance institution. The reason why is because they can help with providing leads to other finance options that can help. Bankers also sometimes help with directing people towards a private money lender.

Always have the plan ready to go and try to come up with options that also seem both practical and realistic. Avoid contacting people that have an unsecured high value loan and very high interest rates. Be positive and ready to answer any questions about the business plan.

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