A merchant cash advance is an unsecured advance of cash on revenues a business will recognize in the future, frequently given by independent investors. Nothing like the traditional loan, working capital is secured with future credit card revenues and entails much less paperwork than a normal small business loan attained through the bank. Ideal for businesses that don’t have many years of work history on their resumes, a merchant account loan provides desired funds immediately.

Banks review five characteristics when determining whether to provide a business loan. These characteristics, called “the five Cs,” are as follows: character, capacity, collateral, capital and conditions. As typical loans are only given to those merchants with exceptional credit and a verified record, it is understandable that a lot of merchants simply don’t cut it.

The qualifications for a merchant cash advance are less stringent, and payment lengths are also more flexible. Repayment is pegged directly to the credit card receivables realized on a daily basis. Nevertheless, the business owner should use a bit of caution when in the market for such working capital.

Even though a reputable merchant loan agent will extend the necessary funding at a viable price, others will try to charge high interest, ask for up front fees and have unreasonable default terms. Reviewing the fine print is necessary.

While many business advisers will suggest that going after funding from family and friends, credit cards and personal savings are better options, they are not always realistic. In addition, it can take time to obtain such funds, and it really is best not to do business with family and friends. Turn around time on this type of funding is most commonly under a week, and with no set payment amount, a merchant account loan is a good way to acquire money quickly without involving additional people.

Since early 2008 Daniel Samoohi has aided 1000’s of business owners in finding credible lenders in order to review quotes for a merchant cash advance. By making lenders compete with each other, Daniel helps businesses in finding great deals for a merchant cash advance.

A Business Cash Advance is becoming increasingly widespread in today’s small business market. The present position of the economy and airtight credit needs are major contributors to the increase in funds advances. It is hard for businesses to get the funds that they need with the increasingly strict conditions for normal business loans. Merchant cash advances are a different avenue of obtaining funding for normal business necessities. So how does a business cash advance operate? Let us explain

Business cash advances are a service provided by a lending institution to a entrepreneur that receives credit cards, usually in the retail or restaurant industry. The merchant loan funding agent basically advances the entrepreneur a prearranged sum of money in exchange for a part of their future credit card transactions.

For example, let’s check out Jo’s Diner. Jo may not have necessary funds on hand to pay his workers or to buy new appliances for his kitchen. Say Joe needs thirty thousand dollars and he contacted a Merchant Loan lender for the money.

The agent would assess Jo’s past credit card statements and find out if he can be approved for the advance. They would determine an interest rate for the money advanced. The rate is usually higher than a traditional business loan because the advance is typically provided to merchants that don’t have the credit or collateral to get funds from a regular bank. If the cost for Jo’s advance is 30 percent then he would be getting the $30,000 and paying the agent 39,000 dollars in future credit card receipts.

The provider would get the $9,000 by taking a percentage of the daily credit card receipts the business takes in. Say the part the provider takes is eight percent of daily credit card volume and the merchant received ten thousand in credit card transactions for the day. The merchant cash advance provider would capture $800 (8% of the $10,000). This process would keep going until the lender received the entire $39,000. This payment process fluctuates with the cash flow of the business. The percentage will remain the same so if your business has a slow period, you will be paying less. This is a big selling point for the advance service. Conventional bank loans have a fixed payment amount, which could be hard to pay during slow times. A merchant loan has the feature to follow a change in business cash flow.

A business cash advance is a helpful alternative to a business loan. Some will believe 9,000 dollars is a steep amount to pay but the conditions a merchant must meet for a conventional loan is becoming increasingly difficult to get. A business cash advance is a way of receiving fast and easy money to meet business working capital needs.

Since early 2008 Daniel Samoohi has assisted thousands of business owners in finding credible providers in order to review offers for business cash advance. By making providers compete with each other, Daniel assists businesses in finding great deals for a business cash advance.

Comparable in nature to a small business loan, a merchant loan is financing a merchant gets for various purposes that is necessary to be repaid within a 6 to 8 month time period depending on how much working capital is received. Merchant Loans are becoming increasingly utilized as local lending institutions are tightening their required stipulations for small business loan approval.

Distinct to traditional bank loans, Merchant Loans do not stipulate for perfect credit. As a matter of fact, if you were denied by the conventional banks and want access to funding in a quick amount of time, a business cash advance may be a perfect answer. As a small business owner would expect, the requirements placed upon such cash advance products commonly include more expensive interest rates since the advance company is taking on a higher risk.

Almost all programs allow the small business owner attach the repayment schedule to income levels of the business. This is extremely useful to a entrepreneur that has large variations in receipts from month to month. Payment is ultimately attached to credit card purchases, facilitating smaller payments during slow months. This feature is very useful to those entrepreneurs who are seasonal in nature because a fixed payment each month is not mandatory.

A Merchant Loan can be of particular use to those small business owners who have not been in existence for long. To get a traditional bank loan or a loan from the Small Business Association, a small business owner may be required to provide verification of collateral, an extensive business history and a credit report with excellent scores. When a merchant is just starting out in business, this may not be possible, especially in today’s economic times.

Nevertheless,caution is advisable when in the market for a Merchant Loan. It isn’t unlikely to find rising payment programs, application costs and a required replacement to a specific credit card provider. Reviewing the fine print of any agreement is a must. For those merchants who find themselves in need of money and have not many other options available, the business advance can be especially helpful as opposed to waiting months for a conventional small business loan you most likely won’t get approved for.

Dating back to early 2008 Daniel Samoohi has aided thousands of business owners in finding credible providers in order to compare offers for a Merchant Loan. By making providers compete with each other, Daniel also helps businesses in finding great deals for Merchant Loans.

There are many junctures in the natural existence of a small business when merchant capital becomes a legitimate necessity to keep afloat or to multiply. Whether the merchant needs cash to keep their doors open or more working capital later in the existence of the business to multiply and succeed, locating funds can be tough.

A business cash advance can be secured from several places. Family and friends, conventional bank loans, credit card advances and more, are all available choices. However, for a entrepreneur that has established themselves in their business for at least six months, there is the selection of obtaining funding through a merchant cash advance as well.

A lot of small business owners come to the realization that utilizing the collateral of their future credit card sales they can get quick, solid funding. The main factor in getting this method of financing is a verification of credit card processing volume utilizing your monthly merchant statements. Of course, entrepreneurs needing these methods of financing are commonly very young in age, and therefore cannot be approved for a traditional bank loans. Fortunately, small business cash advances, those less than $200,000 per business location, are readily available through various merchant account agents.

When a small business owner gets funding from these type of financiers, the payment terms are directly binding to Visa-MasterCard receipts as seen on a daily basis. That is a particular strength in today’s economic climate, as revenues one month can differ greatly from transactions in another month. An agreed upon percentage of receipts called the “daily capture” goes to paying off the balance instead of a fixed amount.

Another strength to cash strapped merchants is that a business cash advance is commonly approved and the money is made available within a few business days. No traditional bank can look at and process a loan package that fast.

Since early 2008 Daniel Samoohi has assisted thousands of business owners in finding reputable lenders in order to review offers for a business cash advance. By making lenders compete with each other, Daniel also helps businesses in finding great deals for business cash advances.

Online payment systems are a necessary part of ecommerce for all concerned, from individual stores to both small and large corporations. Providing high quality merchant accounts can best be done by identifying those attributes that you will require, including the following:

You will need to look at all the price and service components of the service. You should look for an account provider available at all times; you will need him to answer questions and to help you solve problems on an ongoing basis. Clear procedures should be in place so that poor service just never happens. Pricing for all the components of your account service should be clear from the beginning, so that price and service never become issues.

You will find a variety of ecommerce software providers when you begin your search. Start by becoming familiar with all aspects of any software you are considering. Look for both strengths and weaknesses and compare them to your particular needs. Before you settle on a software package, be sure that it is a program that runs without glitches and issues.

Installing your choice of software should be easily and quickly done; you want it online and working for you as quickly as is possible. Quick and complete systems integration should be the norm. You need to know what your program will do for you and how soon it will be on line; after all, it is there to help you grow your business, and the sooner the better.

Your merchant account should be with a company which offers high quality in both service and services. You should be able to make large numbers of complex transactions simultaneously and continuously. There should be no security issues at all. Your account should be able to interface with and service payments from any source, and you will receive the most value from a program which integrates all payments into one smooth operation.

Your merchant account should be versatile and easy to use. What that really means is that it should be simple to operate and possess all the functions you will need to have. Unnecessary components should be eliminated so that the focus is on growing customer sales, not on operating the accounting system. You should be easily able to deal securely with diverse procedures, from one-time internet purchases to any source of recurring payments; and your account should be able to interface with everything from shopping carts to Quickbooks and still be able to provide you with up to the minute reports.

Your merchant account, then, should be adaptable, able to provide for all of your needs as you change and grow. It should be absolutely secure. And it should provide its services in a user-friendly manner. Your merchant account is your lifeline to internet commerce.

If you’re looking to find the best merchant accounts, then visit www.payleap.com to find the most competitive Internet merchant accounts available.

Tips To Help Your Business Save Money!

1.(Keyed-In Transactions)If your business keys-in transactions, you want to ensure that your terminal prompts for a zip code. Full AVS (address verification) is not needed, but Visa and MasterCard require at least the zip code.

2.(Pre-Authorization)Visa and MasterCard require that if you pre-authorize a credit card you settle the transaction within 1 day for retail businesses and 2 days for card not present businesses.

3.(Pre Authorization)When you Pre-authorize a credit card, the settled amount can be no more than 20% of the pre-authorized amount. Example; if you pre-authorize $1,000 the settled amount has to be no more than $1,200.

4.(Batching Out Your Terminal)Make sure you batch out or settle your terminal each day. Visa and MasterCard both require transactions to be settled or close within 1 day or they are subject to higher rates and fees.

5.(Manual Imprinters)It’s a great idea to make sure your business has one of these and to take a manual imprint when you have to key-in a transaction. If you ever have a charge-back, the first thing Visa or MasterCard will ask for is proof of the sale. You can save yourself a lot of time and hassle by doing this.

6.(Pin Pads)If you process high dollar transactions you may want to consider purchasing a pin pad. You pay no percentage rate for PIN based debit transactions, only a flat per item transaction fee regardless of dollar amount.

7.(Commercial & Business Cards)Visa and MasterCard have special programs designed for businesses processing commercial, business, purchasing and government cards that allow you to save up to 1% on every one of these transactions. You need to make sure your processor is a certified B2B/B2G processor or you will not be getting these special preferred rates.

Ensuring your processor properly trains your employees and staff on requirements for processing particular card types or transactions is just as important as providing a low rate. Not doing any one of the tips above can cost your company an additional 1-2% or more on your bottom line.

Your biggest weapon to combat higher processing fees can be summed up in one word KNOWLEDGE. Remember, for some processors it is not in their interest at all to train their merchants on how to keep their processing fees at a minimum. The reason is because they are trying to make as much profit on each account as possible. They put their success ahead of their merchants success.

There would not be a merchant services industry without you the merchant. Equip yourself with knowledge and know what your rights are. Don’t be fooled or misled by a slick talking sales person just looking to make a quick commission. Hold your current merchant services provider accountable and know exactly what your paying and why. If you are looking to setup your initial merchant account, do a thorough comparison of different companies services and make sure to always request to see their Schedule A.

Don’t let your profit margins shrink, expand them, by following these 7 simple credit card processing principles.

Looking to find the guaranteed lowest processing rates for an Internet Merchant Account, visit www.tailoredtransactions.com for low cost Credit Card Processing.

There are many misconceptions out there regarding merchant accounts. Sometimes these misconceptions arise because a business owner does not fully understand their account, or many times account misconceptions are simply passed on word of mouth rhetoric. Here is a look at some common merchant account misunderstandings and how you can overcome them.

Providers Hide Fees

By law, providers must disclose all merchant account fees and rates to the merchant. These rates and fees may not always be easy to read when they are part of a 25-page contract, but they are there. Take the time to read every page of your merchant account agreement contract. Ensure you understand all the fees and rates listed. If you have any questions, ask your provider. They should be more than willing to go over their pricing with you.

Contract Terms

Many merchants seem to think that when their contract term is up with their current merchant account provider, that their agreement automatically goes month-to-month. This may not be the case. In most instances, when a merchant account contract expires and there is no new agreement drawn up, the original contract term is reinstated. Ask your current provider what their contact term policies are. As your contract term end dates nears, take the time to speak with your provider and update any changes to your account (volume, average ticket, etc.). This is also a good time to negotiate pricing.

Advertising Debit Swiped Rates As A Teaser Rate

Don’t be fooled when looking at those low qualified rates you see advertised. Those low rates are most likely the debit-swiped rate. Credit card swiped rates are higher than PIN-based swiped debit transactions. When comparing rates or negotiating with your current provider, ask to always have both the debit card and credit card rates quoted to you. A swiped credit card cannot be processed at a rate as low as 1.03% or 1.19% like many companies would have you believe in their advertisements.

Is The Free Equipment Yours To Keep

Credit card terminals, printers and pin-pads that are offered to a merchant for free, are most likely not for the merchant to keep. Free equipment is “loaned” to the merchant while the merchant maintains an active agreement with the provider. Once the agreement is terminated (by either the merchant or provider) the free equipment must then be returned to the provider. Failure to do so or returning damaged equipment could result in the provider recouping their equipment cost directly from the merchant’s credit card funds.

Knowledge Is Power

Merchant account agreements have a lot of information, which can overwhelm and confuse even the keenest of business owners. Information may be different with each provider or source. In fact, most business owners learn the ropes through experience. But by reading the agreement and asking questions, merchants can avoid costly account misconceptions and also help in educating fellow business owners.

Learn more about how easy it is to Setup a Merchant Account. Please take a minute to visit www.tailoredtransactions.com where you can learn more about the merchant services industry and on accepting credit cards.