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The most unique part of this article is the merchant cash advance/loan
programs. Most people aren't even aware of these programs....
The initial question a lot of people are asking is what is a
merchant cash 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. Some cash merchant advance
companies will fund up to $750,000 per location.
This is a great way for a business to obtain working capital.
Most conventional lenders shy away from the restaurant industry
These cash merchant advances/loans are great for businesses that
have seasonal cash flow needs, that aren't capitalized properly
and need more time to achieve their sales base, have credit issues
that can't be overcome at the bank, businesses that need instant
cash now, and obviously many other factors tailored to specific
businesses.
These lenders aren't FICO driven and are interested in your past
Visa/ Mastercard Sales for the previous six months. Usually the
company's bank statements, the merchant processing statements
and a signed application are required to commence the lending
process. Once the lender has received these requirements, a decision
can be made fairly quickly, usually within 24-48 hours. Beyond
an acceptance, the money is usually funded within seven business
days.
The next obvious question, is how does the customer repay back
the loan or cash merchant advance? It is from the future card
sales, a small portion is paid back each day to pay back the lender.
This is important because there are no balloon payments or monthly
payments to consider. The lender calculates a small repayment
per day that can last up to one year.
Other programs that we have come across don't use Visa/Mastercard
as the total measuring stick for the qualified loan amount. They
use the total annual gross sales and apply a percentage against
it. The beauty of this program is also they don't require you
to change your processor. Minimum Credit scores start at 550 and
this loan can be funded up to $500,000. Tax and Financial statement
requirements are needed for funds requested over $125,000. This
program also applies to restaurants so this can be real bonanza
if you are having trouble raising capital at your local bank...
Finding available capital whether through leasing and working
capital can be very difficult in todays times. The cash merchant
advances/loans can offer the seasoned business an unique opportunity
to acquire funds without all the red tape conventional banks require..
Happy hunting for your financing.....
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J.M Luna has over thirty years experience in the financial field.
This includes accounting and taxes, leasing, hard asset money
and commercial loans. U.S Corporate Capital Leasing Group assists
the startup as well as the seasoned business for funding in all
different types of industries.
http://www.cclgequipmentleasing.com/merchantloans.htm
http://www.cclgequipmentleasing.com/75k.htm
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