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 : Automobile centers, individual owned automobile shop franchises, auto repair shops, auto accessory stores, car washing centers, tow truck businesses, all related auto parts, accessories, services, etc

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....