Business Working Capital Loan – Tips on Where to Get a Loan For Business

Business owners have been left scrambling for a way to find a business working capital loan or any type of loan for business. The overall restriction of business and personal lending over the last 3 years has left many businesses, especially retailers and restaurant owners, with a lack of affordable sources for working capital.

Even sources that are still providing loans are often approving up to 80% less applications than previously in a bid to eliminate risk from their outstanding loan portfolios. Into this vacuum, a number of options that are advertising themselves as “working capital” loan providers have entered the marketplace. Some of these make more sense for business owners than others, even if the credit is less than perfect.

Payday or “Fast cash” signature loans – These loans are typically designed as a quick, low loan amount solution to an immediate cash crunch. Normally the loan amounts are here are small, less than $2500, and are very high rate and high fee. These only make sense for a business person in a scenario where time is of the essence. Otherwise, this is some of the least affordable capital out there.
Commercial Mortgage- This is a viable option for those businesses that own their own real estate with a decent amount of equity. If time is not a big factor, shop around for a local commercial mortgage broker who knows your area and has a good handle on programs and values for commercial property. Typically, the rates are competitive, even if your credit is less than perfect or you are highly leveraged. However, this type of financing can take up to 90 days to complete, so be aware of this before completing the extensive paperwork.
Merchant Cash Advance- Often marketed by merchant cash advance companies as a way to get retailers who accept credit cards to switch credit card processing services, these type of “advances” have the advantage of being quick. However, they often come with multiple requirements for the business owner to switch processors, pay high upfront fees and interest rates, and buy new swipe equipment as a condition of approval. Often marketed as ” business working capital loans”, they are not actually regulated as loans because they are cash advances against the future credit card receivables. This also means there is no upward limit on the rate being charged. This rate also may change during the repayment period at any time.

There is a new option for business owners with less than perfect credit who are seeking an affordable business working capital loan, but can’t get approved at a traditional bank. This affordable loan is known as credit card receivable financing and is characterized by:

Lower Rates – Rates 50-80% lower than a merchant cash advance with no upfront fees or expenses whatsoever
No Requirements – No requirements to switch processors or buy equipment of any kind.
Quick Approvals and Funding – 48 hour approvals and 7 day, low documentation funding with no business plan or financials required. Owner credit scores down to 550 may be approved.
Regulated Business Loan- Not a cash advance, a true regulated business loan that can build a positive credit history, unlike a merchant cash advance.

If you are seeking a business working capital loan for your enterprise, be sure to research your options carefully, ask pointed questions about approval and credit requirements, and make sure you are understand exactly what you are signing before actually committing to any obligation.

Neal Coxworth is an entrepreneur and a 17 year veteran of the consumer credit industry with experience in originating, underwriting and processing mortgage, student and consumer credit loans

How to Get a Loan For Business

Many retailers are faced with daunting task of trying to get a loan for business. In today’s constrained economic environment, obtaining this type of loan is difficult from Banks and the SBA. While these institutions have the best rates, their ability to lend is severely constrained.

As a consequence of this, many hard hit retailers have been forced to go to find other alternatives to obtain capital for ongoing operations, expansion, or even just surviving as a viable entity. Many retailers who accept credit cards have been forced to consider alternative “cash advances” from their credit card processing providers.

These “cash advances” are not true loans and are not regulated by state and federal usury laws that govern the maximum amount of interest that can be charged. Because of this, many merchant cash advances can have factor, or interest rates in excess of 50% coupled with high upfront fees and the requirement by the company to switch credit card processors and/or buy new equipment.

Often touted as “unsecured” and not being approved based on the owner’s credit, these advances nonetheless are often secured with a UCC lien on the owner’s business. This means that the payment processor/cash advance company has a right to proceeds if the business is ever sold or liquidated.

However, there is now a new way for retailers to get a loan for business operations without paying the extremely costly “lender of last resort” merchant cash advance rates and fees. This new option is called credit card receivable financing and is characterized by:

Interest rates (factor rates) that are 50-80% cheaper than a merchant cash advance
No requirement to switch processors
No requirement to purchase any new equipment
No upfront fees
Owner credit scores as low as 550
A true business loan that allows a business to build a positive credit rating for future loans.
Low Documentation, approvals in 48 hours.
Fundings in 7-10 days.

The key thing for any business to remember is to always try and utilize working capital as profitably as possible, or only to pay one-time large expenses. If a loan is used continually to plug holes and “slow” times, it may be time to examine ways to boost revenue, rather than borrow more money.

Businesses need a better way to get a loan for business in this difficult marketplace. To find out more about this new type of lower cost option for business capital, check out the link below.

Neal Coxworth is an entrepreneur and a 17 year veteran of the consumer credit industry with experience in originating, underwriting and processing mortgage, student and consumer credit loans. He publishes an informational blog for consumers to provide insight and analysis to all major loan types as well other topics such as credit history, that most consumers will face.

Want a Loan for Business? Think About This!

As a business owner, part of the joys of being in business is dealing with unexpected things cropping up. This could be an unexpected car repair bill, could be a sudden increase in your rates for your intranet or phone, it could even be a sudden disaster that you need to go take care of. And again it can also simply be that you want to create the best business that you can as fast as you can so that you can retire while you’re still young and leave something for your children. With this in mind you may be considering a loan for business. However, you might want to think of a few things before you do.

First of all, remember that unlike a few years ago the landscape for getting alone for business has drastically changed. Although getting any kind of loan is never exactly been a walk in the park, with the current economic troubles lenders have become even more strict and stringent with their terms which not only includes what terms they’re willing to lend you money but also what they are looking for in a borrower. And if you don’t match the requirements, then odds are you will not get the loan. However, something else to consider is that to figure out exactly how much you think you’ll need and show them what out of shadow of a doubt how you will use it on what timeline, and most importantly how and when you will pay it back.

The key here also is to make sure that when you’re looking at loan for business that you go in with a realistic expectation and a respectful attitude. You might be wondering why I see respectful attitude. If you’re going into request money then it is always good to know exactly what you’re going to do with it have a plan on paper, and always be respectful of the person you’re talking to for ultimately he or she is the one that may make the decision on whether or not you get the loan.

Alternative Secured Loans For Businesses!

There are alternative secured loans for businesses that the financial industry has created keeping in mind the needs of the small business niche. These loans instead of using real estate to secure a business loan (which usually small businesses don’t have as they often rent their offices), just use certain assets that are within the reach of almost all small businesses.

Alternative Form Of Security

It is possible for businesses that work with credit cards to reach an agreement with certain payment processing institutions that are also financial institutions. These agreements consist on a loan that can be awarded to the businesses for which the institution acts as payment intermediary which is secured with the company’s future credit card sells.

Basically, the lender knows exactly what the company’s income flow is (at least the credit card part of it) and thus can easily provide financing knowing the business payment capacity. Moreover, the amount of the loan’s monthly installments is directly debited from the business’ account since the lender processes the company’s client payments too.

Advantages Of Using This Method Of Financing

This method of financing provides the necessary funds for any business expansion or growing plans without the hassles of applying for other forms of financing that require more bureaucratic paperwork and presenting backing up documentation in order to prove an acceptable income to afford the monthly payments.

These loans instead, are easy to qualify for because the lender already knows the account movements of the borrower and can be sure to be repaid because he just needs to retain a fraction of the funds that arrive with each client payment made using a credit card. Since the lender grants the money but at the same time processes the company client’s payments, it has nothing to worry about and thus can provide very advantageous terms on the loan.

Also, not using equity when you have this other alternative is a smart choice as it remains as an option whenever an emergency situation arises and you don’t have other sources of financing that can provide high loan amounts and affordable payments too. It’s a way for the borrower to be assured that if anything unexpected happens he will still be able to obtain further financing.

This collateral alternative is becoming increasingly popular as it provides fair amounts of money and competitive interest rates without much paperwork or long credit verification processes. Thus, whenever you need funds for your business and if your business has payments made by clients with the use of credit cards, you can check with the financial institution that provides the payment processor services whether they provide this kind of loans

Cash Advance Loans For Business

Cash advance is a service that is provided by most credit card as well as charge card issuers to merchants. It can turn your future credit card sales into working capital today. By availing this service, a card holder can withdraw cash either through financial institutes or banks’ counters or through ATMs. Cash limits are defined by the issuers and a card holder can’t withdraw the cash that are beyond their credit limit. There are various benefits of cash advance loans. Peoples can use it with paycheque across the world as per their specific financial needs and requirements. It’s considered as well suited for short term loan which require extra cash for expensing low amount of money for anything.

Most of peoples are not aware about its advantages, some of which are below mentioned:
Reduce Stress: It is one of the biggest advantages of cash advance loans whether you take it for your business or personal needs. A small amount of money such as your electricity bill, telephone bill etc. can be stressful for you and sometimes, it gives a lot of pain instead of it’s a small amount.

Restore control to your finances: In case, you have more out-payments due rather than cash available in your bank account, you may feel like the situation is beyond your control. By getting your paycheque money early through a cash advance, you can reclaim that sense of control. Thus, it has key in restoring control to your finance as per your special needs and requirements.

Prevent from unnecessary expenses: As you know that if you do not pay your various bills such as telephone bills, electricity bills etc. on time, there will be late charge levied. In this case, you have due of your credit card which will negatively impact on your credit score. Thus, you will not able to get loans by prominent financial institutions or banks as per your personal as well as business requirements. Thus, you should always aware about doing unnecessary expenses under any situation.

If you have no any idea about fast cash advance loan, you should go through online resources. Internet is one of the best and ultimate medium where you can get the detailed information about fast cash loan. There are various reviews websites where detailed information about various kinds of loans is mentioned along with advantages and disadvantages. You can study them thoroughly and carefully. This will help you to get the detailed information about cash advance loan from business as well as personal perspectives.