With the economy remaining on the ropes after the sub prime residential financing crisis, small business owners are finding it harder than ever before to get approved for a conventional bank loan. Credit Card Factoring may be a perfect answer. A fast approval time, reasonable cash advance funding of up to 250,000 dollars, and a flexible payment schedule are all great points for pursuing this new direction for the funding your business wants.

However, a small business owner would do well to review more than just the financing they can obtain. The North American Merchant Advance Association (NAMAA) has a list of best working practices which they condone for Credit Card Factoring agents. If the provider offering you a business cash advance doesn’t adhere to these practices, it is most likely best to look somewhere else. The guidleines are as follows:

-Provide clear disclosure of charges – NAMAA doesn’t endorse closing costs as part of the approval process of merchant advances but urges that any of these costs be lucidly explained and disclosed. The total payback amount should be totally elaborated upon and hashed out before finalizing the agreement.

-Give clear disclosure of liability – Technically, merchant advances are not regarded as loans; rather they are regarded as a purchase of future Visa-MasterCard transactions. As such, the entrepreneur can be held personally in debt for any cash not repaid if the merchant opts to violate the arrangement.

-Be mindful of a entrepreneur’s business cash flow – A typical arrangement involves that the merchant repays a specific percentage of credit and debit card receipts on a day to day basis.

-Advertising materials disclosure – All sales materials should make it clear that the arrangement is one of factoring, not a loan.

-Stay on top of your Sales Agents/Brokers – Merchant advance lenders should make sure that their sales agents or brokers are appropriately representing the program.

-Proper payoff of open Merchant Cash Advance Balances – if a small business owner opts to take an additional merchant advance with a new company the new lender should immediately pay off the previous balance instead of leaving it to the entrepreneur to pay off the remainder.

Since early 2008 Daniel Samoohi has aided thousands of business owners in finding reputable providers in order to review offers for credit card factoring. By making providers compete with each other, Daniel helps businesses in finding great deals for credit card factoring.

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.