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Merchant Cash Advances vs. Small Business Loans – A Question of Risk At Merchant Cash Advance Nation, we are certainly not opposed to the Small Business Association (SBA). We recognize that the SBA is more than a source of funds, but a significant supporter of small businesses and their owners throughout the nation. We also believe that it’s important to consider all funding options before choosing one. The SBA has the cachet of history and stability, while merchant cash advances do not, but there are some downsides to an SBA loan. SBA Loans are inherently risky One of the biggest disadvantages to a loan from the Small Business Administration is risk. For both the lender and the borrower these are high-risk loans. For the lender, the greatest risk is that the borrower will default. Statistics from 2009 (the most recent year for which complete data exists) show that about 12% of small business loans “failed” that year. That means they went into default. For borrowers the risk of default is also high, especially in businesses which depend on seasonal volume (ice cream shops, holiday décor stores) to make the bulk of their income or from startups which lack the brand loyalty and history needed to stay afloat during slow times. Another risk, though, is that of losing personal assets, because small business owners often secure their business loans with their personal savings, or with their cars and/or homes. Why is the failure rate so high? Part of the problem is that SBA loans – like all bank loans – are fairly inflexible. Once the contract is signed, the payment amounts and due dates are fixed, and even one missed payment could trigger dire consequences. Merchant Cash Advances may be better options If you’re a restaurant owner, retailer, or other small businessperson, then, and you don’t wish to risk your family’s security on your business, good for you. Chances are, you’re also pretty cautious when it comes to incurring any kind of debt, whether or not it comes with a fancy government guarantee. Where, then, do you turn for the infusion of liquid capital that your business sorely needs, especially during a time when sales are slow? A bank loan is one option, but a merchant cash advance may be a better one. While it’s true that merchant cash advance payments can take away a significant portion of your monthly credit card receipts, it’s also true that those payments will be smaller when business is slower. As well, merchant cash advances do not typically require collateral of any kind, just proof that your business has been operating for a minimum length of time, and doing a minimum amount of volume. Merchant cash advances are also easier to obtain – no credit scores or extensive

paperwork – and can be set up without a fixed repayment term, so while we say that most advances are repaid within a year, we really do mean ‘most’ and not ‘all.’ There is an old adage that ‘it takes money to make money.’ At Merchant Cash Advance Nation, we, like other merchant cash advance providers, understand that a business without working capital is doomed to failure. We cannot tell you that a merchant cash advance is absolutely the best choice for you and your business. We can tell you that you should at least consider the option with the least amount of risk.

Merchant Cash Advances – Say YES to No Collateral When you research merchant cash advances, one of the common advantages you’ll see touted, whether you’re looking here at Merchant Cash Advance Nation, or at any other reputable provider, is that we don’t require collateral. What you may not understand is that “No Collateral” is another way we say “yes” to your working capital needs. Why is No Collateral a good thing? A great number of small business owners use their personal assets in order to obtain funding for their companies. Sometimes this can be an easy source of funds, as in the case of a refinance or second loan on a home, but when a business fails – especially if the owner’s home or car has put up as collateral for a loan – those assets can be seized by banks and creditors. Put another way, if you used a home equity line of credit (HELOC) to fund your business, and your business goes under, causing you to miss payments on the credit line, the bank could foreclose on your house in order to recover the funds from that loan. With a merchant cash advance, however, collateral is not typically required, so your personal assets are not at risk. Why don’t merchant cash advance providers require collateral? If requiring collateral is standard practice in money-lending, and merchantcash advance providers don’t require it, how can they be sure their clients won’t just walk away without repaying their advance? One reason is that merchant cash advances, whether they’re standard credit/debit sales advances or ACH advances, are designed so that not paying is isn’t even an option. Payment is taken directly from the credit card processor or via an automatic sweep of

bank accounts. No one is writing a monthly check to a lender, so as long as the business stays in operation and continues to accept credit cards, payments will be made. Another reason is the vast array of information that is so easily obtainable in the modern world. Merchant cash advance companies may not look at credit scores, but they can – and do – analyze the volume of credit/debit card sales your company transacts, and those numbers are not difficult to verify. This means that when a merchant cash advance provider says “yes,” to your application, they already have a reasonable certainty that your business can generate the necessary volume for a swift, steady repayment plan. Merchantcash advances are not the best fit for every borrower or every business. It’s quite likely that you, as a small business owner, will use a variety of funding sources as your business grows. Still, cash advances are a good way to get capital quickly, with a minimum number of restrictions.

How to Qualify for a Merchant Cash Advance While small businessloans can take a month or more to put together, merchant cash advances generally move very swiftly. Some providers can disburse funds in as little as seventy-two hours while here at we typically take about seven business days. Cash advances are relatively easy to obtain, but you’ll still have to gather some information and documentation before you apply. The basic steps to qualifying for an advance are selecting an approved credit card processor, submitting your application for the advance, and reviewing the contract. Select an Approved Credit Card Processor Some cash advance providers require that you use an affiliated credit card processing company. At Merchant Cash Advance Nation, we merely have to approve the processing company of your choice. This is to ensure that their system is compatible with our products, as well as to confirm that you’re working with a stable and reliable credit card company. Submit your Application While the application for a merchant cash advance is far less complicated than those for business loans, there is still some information you must provide. Most often, you will need to answer some basic questions about yourself and your business, and supply credit card statements to support your ability to repay the advance. Then, the merchant cash advance provider will evaluate your information, paying careful attention to the average monthly income of your business and the average monthly credit/debit card sales. The required monthly average differs from provider to provider, but typically your business must have at least nine months of operation history, and average $5,000 / month in credit/debit sales.

Review the Contract If your application for a business cash advance is successful, you’ll receive a contract that specifies the amount of your advance, the total amount of future credit/debit card receipts that you’ve sold to obtain your advance, the percentage of daily receipts that will go toward repaying the advance and any terms that exist to address things like what happens if either party fails to uphold any part of the agreement. All if this information will help you understand exactly how much you will pay for your advance, and for how long. Assuming that there is nothing unexpected in your contract, you will sign it, return it to your merchant cash advance provider, and await receipt of your funds. Timing is crucial, and that being able to obtain liquid capital quickly and easily can mean the difference between a boom or bust year for your business. We look forward to helping you as your business continues to grow and expand.

How to Shop for a Merchant Cash Advance We understand that for the small business owner, the ability to expand your business, either to improve your product offerings, or to serve a greater number of clients, is vital. We also know that order to do that, you’ll need liquid capital. Obviously business loans are an option, but if you want greater flexibility of payments and fewer restrictions on how funds are used, or of credit scores are a problem, a merchant cash advance may be the better option. When shopping for your cash advance, there are several things you’ll want to consider: •

Costs and Fees: Look for a merchant cash advance that comes without up-front fees and requires no closing costs.

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Collateral: Some cash advance providers require that you provide collateral. We advise you to seek a provider where this is not a requirement. Payment Structure: While most cash advance providers arrange for payments to be based strictly on sales volume, some want you to agree to a fixed payment. Look for a provider that lets you choose your payment structure, or opt for a non-fixed payment. Repayment Term: While a fixed term for repayment is the norm, we suggest looking for a cash advance provider who will not require a fixed term. Credit Scores: While credit scoring is not typically used to determine whether or not a cash advance will be granted, you may get more favorable terms from a merchant cash advance provider who requires scores above 500. Documentation: Some cash advance providers ask for twenty-four months of credit card sales records; it’s much easier if you find a provider who only wants six to twelve months of records. Likewise, some merchant cash advance applicants are asked to provide financial statements for every advance, but it’s better to seek an advance where you only have to provide this information if you’re asking for a large sum (over $75,000). Advance Amount: Not all cash advance providers offer large amounts of money. If your plans are extensive, make sure to choose a provider that offers merchant cash advances of $300,000 or more.

Be aware that you may not be able to find a merchant cash advance provider that meets all of your criteria. Trust your instincts, and if a company offers everything you want, but still doesn’t feel “right,” take your business elsewhere. 90% of applicants are approved for funding, and credit scores are not an issue. When others say you can’t, we say you can

Purposes of a Merchant Cash Advance When you apply for a cashadvance you can do so knowing that we put no limitations on the way you use your funds. If you already have a purpose in mind when you apply, that’s excellent, and we look forward to helping you grow your business. If you’re just beginning the process of looking for business capital, however, it might be useful to learn about some of the common purposes for advances. To be honest, your merchant cash advance can be used for almost anything your business requires, and, since the application is very simple, and funds are disbursed quickly – typically within seven business days – a cash advance can be a good source of “emergency” capital. Still most people use these advances in one of three ways: Protecting Personal Assets: Many small business owners, especially sole proprietors, use their personal assets – houses, cars, savings accounts – if their business suffers a significant loss. If a client sues for damages or a storm destroys all or part of your building, a cashadvance can be used to pay for legal representation, or to cover repairs while you wait for an insurance settlement, so you don’t have to take out a second mortgage, or sell your new vehicle to cover business expenses.

Paying Business Debt: Payroll taxes and business taxes can hurt a small business, especially if you’ve sunk most of your liquid capital into expansion plans. A cash advance is an excellent source of funds to pay the IRS or Franchise Tax Board, or for you to stay current with your vendors during seasonal slumps. Expanding the Business: Expanding a business can take as many forms as there are kinds of businesses. A restaurant owner may want to open a second location or add more tables. A retail store might want to buy additional merchandise for resale or add staff in order to extend operating hours. Any number of small businesses might want to increase (or create) their advertising budget, or improve their online presence. Whatever your needs, a cash advance from Merchant Cash Advance is an excellent source of liquid capital. Whether you apply for funds with a plan in mind, or because of a financial emergency, if you can demonstrate that your business has a successful track record of credit and/or debit card sales, it is likely that we can help you.

Merchant Cash Advance with full information It’s no secret that today’s market is pretty tight. Consumers are being more cautious about their spending, and many small businesses are struggling to stay afloat, let alone expand. For many businesses, an injection of capital would make the difference between a slow season or a sensational one, but where to get it. While small business loans are certainly an option, they can be incredibly difficult to get, especially since banks focus more on credit scores than on the viability of a new or existing company. That’s why many small business owners choose a merchant cash advance. Like a business loan, a merchant cash advance from is a sum of money that is meant to be spent on your business, and then repaid with interest. Unlike a loan, cash advances do not require personal guarantees or collateral; nor do they typically have a fixed repayment schedule. Instead of borrowing money, as you do with a loan, you are selling a percentage of your future receivables (generally in the form of credit card receipts) to us at a discount.

For example, if you own a restaurant and need $30,000 to update the kitchen and remodel the dining room, you might agree to sell Merchant Cash Advance Nation $35,000 in future credit card sales. As part of the cash advance agreement, we’ll arrange for a small percentage of every credit or debit card transaction to be transferred to us until the entire balance has been paid. In most cases this takes less than a year, which is much less time than it takes to pay off a loan. Because payments are based on percentages, you’ll be making smaller repayments when business is slow and larger ones when business picks up, rather than having to face a fixed monthly payment. This makes cash flow much easier to manage. Unlike a business loan, cash advances have a high approval rate. While you must still demonstrate that your business has a successful track record, Merchant Cash Advance Nation, like most cash advance providers, does not look at credit scores. Instead, we want to see several months of credit and debit card sales receipts, usually with a minimum volume of $5,000/month. (That said, there are a couple of things that can disqualify you, like an open bankruptcy.) Another advantage of a merchant cash advance is that there are no restrictions on how you use the funds. Common uses for cash advances include purchasing new or seasonal inventory, updating equipment, remodeling, paying business taxes or vendor invoices, or even using the money for payroll. How do you know if a business cash advance is right for you? If you want access to quick cash, without restrictions, and a repayment schedule based on real-time cash flow, working with a Merchant Cash Advance is definitely something you should consider.

What is a merchant cash advance and how it works Are you in a business were credit card sales are just a part of it? Are you or have you been looking for a way of obtaining cash to grow you business? Have you been hurt by the economy and having a rough time getting a traditional loan? Well listen to what you are about to hear! When you obtain a merchant cash advance you are taking a loan out on your future credit card sales.Granted you need to have proof of sales to obtain a merchant cash advance it is not that hard to do.With your last 12 months of credit records and some basic information you could be on your way to obtaining cash for future credit card purchases. This is the basics of the merchant cash advance they pay you a loan for percentages on you future sales. It is usually a low

percentage that is over an extended amount of time as to not hurt the business but tomake sure the loan gets paid back. Lots of merchant service companies have the ability to lend upwards to a million dollars for proven companies.You can use this cash for working capital, opening additional locations, renovation or remodeling of business, equipment purchase, advertising, additional inventory purchase. The lending institution wants your company to grow so they can be paid back sooner. Without sales they don’t get paid! There are many advantages to a merchant cash advance that will greatly help your business. Here are a few examples! No up front fees or cost to apply. No personal guarantees. No collateral required. No fixed payments. No set time frame for payback. Fast turn around time. An on going source of capital which is renewable as the advance is paid down. No upfront fees or costly paperwork to apply. Keep in mind when getting a cash advance that there are many different lenders out there and they all have there own sets of rules. They are all pretty much the same but just something to watch for on the small print! I hope this information has been helpful there will be plenty of more to come this week on the topic of merchant cash dvance.

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