Small Business Financing » business loan

Merchants Can Raise Money In Tough Times

cdepuy — Tue, 29 Sep 2009 19:11:49 +0000

Over the past year, financing has become very tight for small business owners, with many traditional sources of capital drying up, such as Advanta, American Express Small Business and CIT to name a few. Recently, financing for large businesses has become somewhat easier to come by, as proxied by the stock market’s rise. Small business owners who compete on Main Street with the larger companies are taking a double-whammy, as their revenues suffer with unemployment at near record highs in the U.S., while at the same time, chain stores of their large competitors have easier availability to capital. When the recession fades and the economy begins growth again, this gap will still persist, we believe. What many small businesses owners do not know, is that there is a form of financing available to address this gap, even when corporate credit cards, lines of credit, business loans, unsecured loans and equipment financing is unavailable. This business loan alternative is called a Business Cash Advance.

Here is how a business cash advance (sometimes called a merchant cash advance) works. A business cash advance financing company will purchase a portion of a small businesses’ future credit card sales. In return for this purchase, the small business will receive a lump sum of cash, deposited into its business checking account. It is quite common for the small business owner to receive this money within a week of being approved. Most companies in this financing industry will offer a one-day approval process once receiving a completed application.

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Case Study: 50% m/m growth after a merchant cash advance

cdepuy — Tue, 29 Sep 2009 18:55:12 +0000

Two months ago, we assisted a shoe retailer in Northern California with a business cash advance. The purpose was to buy inventory to increase sales. We have kept the name of this customer confidential.

At the time, monthly credit card sales were $40,000. The cash disbursement happened about a week after the approval process. The shoe store had inventory for a new set of more popular shoes delivered shortly after the cash showed up.

The next month’s credit card statement shows $60,000 in sales, owing in no small part to the increase in inventory. Certainly there were other factors at play like back-to-school shopping and perhaps the economic revival so often-reported.

Still, we were pleased to be part of the company’s success in leveraging an injection of new working capital to increase sales. We hope to report back about how this special retailer’s sales are going in a few months.

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Cash Federal is hiring

cdepuy — Tue, 29 Sep 2009 18:46:59 +0000

We are recruiting experienced salespersons to market and sell our merchant cash advance services. Knowledge of merchant services, business cash advance, business loans and/or consumer loans is a plus.

You may contact us at 1-877-221-3003 or learn more about the opportunities.

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