Entrepreneurs Turning To Small Business Financing Alternatives

If you’re a small business owner today, you know that small business financing is one of your biggest challenges today. Banks have restricted the flow of credit, making it very difficult for small business owners to get the cash they need when they need it. Lines of credit have been pared down or cut back altogether. Sales volumes are down, and receivables are taking longer to collect today than they did just six months ago.

For many small businesses, cash flow is what makes the business operate. Having the ability to tolerate a longer receivables cycle, having the cash on hand to cover unexpected expenses and periodic expenses like payroll taxes, may be the difference between surviving and shutting down.

In the absence of bank lending, small businesses are turning to other options to get the cash they need. One relatively new alternative is the microloan. Microloans are popular in third-world countries and provide small amounts of cash. Often, these small dollar loans come from non-profit organizations that provide start-up cash, or supportive capital for existing businesses. In many cases, microloan recipients are required to pay higher interest rates and take business classes in order to qualify for the loan.

For existing businesses, there is a better option. If your US-based business accepts Visa or MasterCard, and has credit or debit sales of just $2,500 per month, you may qualify for a merchant cash advance through Rapid Capital Funding. A merchant cash advance isn’t like a loan from a bank. There are few credit requirements, no collateral and no personal guarantees. The merchant cash advance provides immediate cash to you. You pay back the advance each time you take in a credit or debit card transaction.

The merchant cash advance isn’t like a loan that hangs over your head each month. The cash advance is repaid on a percentage basis and is tied to your sales. When your sales are low, your repayment is low. When your sales increase, your repayment accelerates. It’s a highly flexible, responsive way to repay your advance because it takes into account the ebb and flow of sales in your business.

What’s more, you’re not required to explain to us what you plan to do with the money. Use the money in whatever way you need to. Pay bills, expand your operations, replace equipment, cover your payroll or boost your cash on hand. Rapid Capital Funding is just here to help you succeed in this tough economy. If you would like more information about Rapid Capital Funding’s merchant cash advance, don’t wait! Contact Rapid Capital Funding today.

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Thinking About A Merchant Cash Advance?

 

If you’ve never gotten a merchant cash advance before, you probably have some questions about how the process works, and the potential risks and rewards of working with a merchant cash advance provider. The truth is that merchant cash advances are growing at a double-digit rate as small businesses look for ways to shore up their cash flow, or get financing that banks and private lenders won’t provide.

 

Ideally, merchant cash advances work best for businesses that have a lot of credit card transactions. These businesses include bars, restaurants, retail outlets, and personal service providers like dentists and hair stylists. The cash advance, which is usually capped by the amount of monthly credit and debit card receipts, is paid back over time (often a period of months). A small amount of each credit card transaction is forwarded to the advance company to repay the advance. Normally, the advance is paid back as a percentage of sales volume, so when sales are down, the repayment amount also decreases.

This is great for businesses that need a healthy cash flow to remain in operation. Merchant cash advances can be used for just about anything – paying bills or taxes, shoring up cash reserves, covering unexpected expenses, financing an expansion or just about anything else you have in mind. There are no monthly bills to pay – the repayment occurs as credit card transactions are processed.

It’s important to understand the agreements you enter into when you accept a merchant cash advance. Most business owners who have gotten a merchant cash advance report that they are very satisfied with the transaction. Some businesses have an advance agreement that works like a line of credit, so they can draw on cash whenever they need to. Other merchants use merchant cash advances only for those occasions when they need cash immediately.

Rapid Capital Funding can help you secure a merchant cash advance for your business. If you’d like more information about how a merchant cash advance can work for you, contact Rapid Capital Funding today.

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Most Small Business Owners Happy With Their Choices

A new survey conducted by PayCycle shows that 87 percent of small business owners would choose to start their own businesses again if they had to. Only three percent said that they would definitely not make that choice again. Ten percent said they were not sure if they would make that choice again.

Sixteen percent of survey respondents said that finding funding was their biggest challenge at start-up. In the current economic crisis, more than half of small business owners have said that finding funding or getting credit is a major obstacle to staying in business.

Staying in business doesn’t have to be a challenge. With a merchant cash advance from Rapid Capital Funding, you can have the funding you need to run your business, pay bills, or cover unexpected expenses or late receivables.

A merchant cash advance is available to your US-based business if you accept Visa or MasterCard and have credit or debit receipts that exceed $2,500 per month. You can get up to 1.5 times your average credit receipts within hours of your application approval.

A merchant cash advance doesn’t require the same scrutiny that a bank loan does. You don’t have to put up any collateral or make any personal guarantees. Fill out a short application form and that’s it. Your future Visa and MasterCard transactions will do the rest. As your transactions are processed, your advance will be paid back. You won’t even need to make monthly loan payments. It’s that simple.

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New AmEx Survey Says Small Business Has Hit Bottom

A new OPEN Economic Pulse survey conducted by American Express shows that the worst of the recession may be over. While the survey paints an optimistic picture of the country’s financial situation, other experts aren’t so sure.

According to the survey, an online poll of 600 owners or managers of companies with fewer than 100 employees, things started looking up in October of 2008. Fewer small businesses are now worried about closing their doors, and 25% more of small businesses expect their operations to grow, compared to the responses given in a similar survey taken last October.

In terms of payroll, only 17 percent of small businesses plan to hire full-time or part-time employees in the near future and eight percent are planning to cut staff. Small business owners are also reporting that it is taking them longer to get paid than in the past. Other survey results show that fewer small business owners are being affected by tightened credit restrictions, small businesses owned by women are having a more difficult time paying their bills, and two-thirds of small business owners think that their businesses are being threatened by economic factors over which they have no control.

The survey paints a better picture for small business than the economic advisors are. New reports show that the economy may contract by nearly 2 percent in 2009, five times higher than originally anticipated. While credit may be loosening somewhat, the survey still shows that more than half of all respondents have been negatively affected by the credit squeeze.

If you own a business in the US, accept Visa or MasterCard and have credit or debit sales of at least $2,500 per month, a merchant cash advance can put the cash you need into your account today. A merchant cash advance doesn’t come with the same restrictions a loan does. You don’t need to justify your need for the money. Simply fill out an application and Rapid Capital Funding will do the rest.

Ninety-five percent of the merchants who meet the general guidelines for a merchant cash advance are approved, and have the cash they need flowing into their business in a matter of days. Whether you want to pay bills, expand your business, cover unexpected expenses or just increase the cash you have on hand, Rapid Capital Funding can help.

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Survey Shows Small Business Feeling Big Pains

The 2009 Channel Insider Market Pulse survey shows that small businesses are cutting back on information technology (IT) services, which have long been considered “resilient” in a recession. Overall, businesses are reducing IT expenditures, but small businesses have really put the skids on IT spending this year. Small businesses are delaying IT and networking upgrades by improving their maintenance, and are seeking out “friendly” financing options when they do make purchases.

In addition, small businesses are re-deploying equipment that they’ve retired once, or are extending the useful life of equipment by repurposing it for other tasks. Repairs on broken equipment are also up significantly. Of more concern is the fact that nearly one-quarter of respondents report that their IT contracts are being cancelled. The survey also shows that small and medium-sized businesses are outsourcing their IT services at a higher rate in order to reduce their payrolls.

IT is an important component for most businesses today, but IT services aren’t cheap. If you need to replace computer and electronic equipment but can’t find the terms you need to make the deal happen, consider a merchant cash advance as an alternative to financing.

A merchant cash advance leverages the power of your future credit card transactions to give you the cash you need right now. There are no long applications to wade through, no long waiting periods to find out whether your advance has been approved and no hassles about how you plan to spend the cash.

If your business is registered in the US, accepts Visa or MasterCard and has credit or debit sales of $2,500 or more per month, there’s an excellent chance that you’ll be able to take advantage of a merchant cash advance. Once you have your cash, there are no monthly bills to pay. Your advance is repaid as your regular credit card transactions are processed. It’s that simple.

If you need cash to replace equipment or make your business run efficiently and you can’t find the financing you need, consider a merchant cash advance from Rapid Capital Funding.

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Need A Business Loan? Try A Merchant Cash Advance Instead

Credit is tight and businesses aren’t getting the money they need from traditional funding sources. Bank loans are hard to come by if your credit is good, and if your credit is less than perfect, your chances of getting a business loan with an affordable interest rate are close to nil.

More businesses are turning to merchant cash advances as an alternative to business loans. Merchant cash advances aren’t loans in the traditional sense. There are no long application forms to fill out, no excessive documentation, no long waiting periods. Better still, there’s no collateral to put up and no personal guarantees to make.

A business cash advance in amounts up to $250,000 can be had in just a matter of days. There are no monthly loan payments to make and even businesses with damaged credit can qualify for a merchant cash advance.

How is this possible? A business cash advance through Rapid Capital Funding is based on your future credit card sales. That’s right…. you can get the money you need now instead of waiting until your credit card sales are turned over to you. As the sales come in, your cash advance is repaid. Simple. No new bills, no balloon payments. Just the cash you need when you need it.

Your business can qualify for up to 1.5 times the amount of your normal monthly credit card sales, too. That means you have fast access to the cash you need to keep your business running. You won’t have to answer a lot of questions, or go through a long approval process. You don’t need to explain why you need the money or what you intend to do with it. You don’t need to produce months or years’ worth of financial documents pertaining to your business. You simply need to ask for the money.

If your business is based in the US, accepts Visa or MasterCard and has a credit transaction volume of at least $2,500 per month, you’re likely to be in the 95% of businesses that will qualify for a merchant cash advance from Rapid Capital Funding.

Rapid Capital Funding works with North American Bancard, a company that processes more than $6 billion in credit card transactions for banks like HSBC, National Association and Wells Fargo Bank. The process of getting a merchant cash advance from Rapid Capital Funding is simple and fast. Once you’ve done it, you may wonder why you’d ever consider asking for a bank loan again.

If you need cash for your business and your bank has turned you down, or can’t move fast enough to help you, contact Rapid Capital Funding and let us get you the cash you need today.

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Tight Credit For Small Businesses

Small businesses are in a fight for their very survival. At a time when small businesses need credit more than ever, most banks are restricting credit. For businesses like restaurants and bars, financing under these restrictions can be deadly.

The recession has hit these - and many other small businesses - hard. Cash flow, especially during a recession, is the difference between businesses that survive and those that don’t.

For businesses that have been turned down for loans or lines of credit, another option exists. For US-based businesses that accept Visa or MasterCard, and have receipts of at least $2,500 per month, a merchant cash advance can provide cash for your business whenever the need arises.

A merchant cash advance from Rapid Capital Funding leverages future credit card sales. As the credit card transactions come in, the advance is repaid, along with a small transaction fee. There are no monthly loan payments to make and no balloon payments. As your sales come in, your cash advance is repaid.

Ninety-five percent of merchants who apply for a cash advance get the cash they need within 72 hours. Rapid Capital Funding also has a special restaurant financing program to meet the special needs of restaurant and bar businesses.

Don’t go without the cash you need to make your business run smoothly. Contact Rapid Capital Funding for your merchant cash advance needs.

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Restaurant Financing In Short Supply During Recession

The stories are similar from Portsmouth, NH to Miami, FL, to Canton, OH and even Chicago. Restaurants aren’t immune from the economic downturn. Portsmouth, NH diners are reeling from the successive losses of three downtown area restaurants in the last week alone. One new restaurant, which barely made it to its first anniversary in Miami, has also closed. Restaurant financing isn’t far from the minds of business owners these days.

One restaurant owner in Canton, OH is angry because recent parking meter increases that tripled the cost of street parking near her establishment, combined with the doubling of parking ticket fines, has cut into her business. In Chicago, more than 130 restaurants have banded together to participate in Chicago Restaurant Week. These high end establishments are putting on the dog when it comes to attracting new diners to their establishments. Diners will find great deals on luxurious lunch and dinner dining at substantially reduced prices, through February 27. Last year, a similar event increased sales by 20 percent.

While restaurant owners will tell you that the reason for closures is “not enough business,” proper capitalization also plays an important role. Businesses like restaurants need to be properly capitalized to build up repeat business, especially in hard times, when restaurant dining is one luxury that many people eliminate.

Rapid Capital Funding has a special restaurant financing program designed to deliver the cash restaurants need fast. If your US-based restaurant accepts Visa or MasterCard, is current on its lease and generates at least $2,500 in monthly credit card receipts, your restaurant is likely eligible for our special restaurant financing plan. You can get the cash you need now to cover payroll, buy new equipment, expand your business, pay unexpected expenses or just weather the downturn, and you can do it without incurring new monthly payments.

If you are interested in learning more about Rapid Capital Funding’s restaurant financing program, contact us today!

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Small Businesses In Greater Danger Of Fraud

Tough economic times mean an increase in fraud against small businesses, which frequently lack rigid accounting controls. Earlier this month, a former financial manager of the Ann Arbor Amateur Hockey Association was charged with embezzling more than $937,000 from the organization, which had been stockpiling money to build a new ice arena.

The theft was discovered by bank officials, who informed the association of the suspected fraud. Kimberly Knight is accused of transferring the money from the association’s account to one of several personal accounts she had opened in her maiden name. The money was spent on lavish gifts, vacations, a luxury SUV and to help support a failing family construction business.

The organization’s experience is typical of small businesses that have been the victim of internal fraud. Often, the business is unaware of the theft and may even close in a downturn, never realizing that fraud, and not the economy, is responsible for their failure.

In the case of the AAAHA, the money that was stolen was intended to build a new facility, not to fund the club’s operations. No employees have been laid off as the result of the theft and the organization’s overall finances are still sound.

Many small businesses find out too late, however, that their operating cash has been taken, and must make the difficult decision to close. Even when no fraud is involved, sometimes cash flow is a problem, especially in a recession. Recovering from such an event or making up cash shortages can be very difficult, but temporary cash flow problems can often be addressed with a merchant cash advance. A merchant cash advance is the ideal solution for businesses that need cash fast, for whatever reason.

With a merchant cash advance, you can use your future credit card sales to put cash in your bank account right now. If your US-based business accepts Visa or MasterCard, and has at least $2,500 in credit card transactions each month, your business will likely qualify for a merchant cash advance. There are no questions to answer about how you plan to spend the money, and applying for a cash advance is simple. Even businesses with less than perfect credit can get cash fast, often within 72 hours.

Don’t wait! Address your cash needs now with a merchant cash advance from Rapid Capital Funding!

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Fiorina Says That Small Businesses Will Drive Economic Recovery

For owners looking for small business capital opportunities in the freshly inked stimulus package, there’s not much of real value. According to Carly Fiorina, former CEO of Hewlett-Packard, small business – not government spending – will drive the economic recovery in the US. Fiorina was delivering the keynote address at the International Franchise Association meeting yesterday.

Fiorina expressed concern that the stimulus plan applies Depression-era corrections to a 21st century problem, and that the spending package won’t address the real needs of the sectors that will actually deliver the economic recovery.

Analysts have indicated that the stimulus plan isn’t by itself friendly to small business. While it does extend some tax credits and increase some caps for depreciation and other business expenses, it doesn’t do much to help small businesses expand, create jobs or spur sales.

Cash flow is a primary consideration of small businesses. Many franchise operations need a steady source of income to make payroll, buy supplies and pay bills. Other small businesses need ready access to credit, so that they can make purchases and start projects on short notice.

For these businesses, bank loans may be out of the question. Banks have restricted lending, even to businesses that have excellent credit and payment histories. These restrictions make it tough on small businesses to land contracts and deliver services in a sour economy.

A merchant cash advance may be the ideal solution for certain businesses. If your US-based business accepts Visa or MasterCard and registers credit sales of as little as $2,500 per month, your business could be eligible for a merchant cash advance.

For more information about a merchant cash advance, or to see if your business qualifies, don’t wait! Contact Rapid Capital Funding today!

Photo Credit: Asif Akbar

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