Treasury’s Credit Fix May Do More To Help Small Business
Treasury's Credit Fix May Do More To Help Small Businesses
The plan would free up consumer credit for auto loans, credit cards, student loans and small business loans by unsticking the secondary securities market, where such loans are packaged and sold to other investors. Asset-backed securities – as they are known – are used to finance an ongoing stream of loans to consumers. Loans are made and sold, and the proceeds from the sale are used to finance additional loans.
The collapse of the secondary loan market has played a large role in the tightening of consumer and small business credit, and has made it impossible for many good-risk consumers to get credit. Geithner’s proposal calls for $100 billion in TARP funds leverage the purchase of up to $1 trillion in new asset-backed securities. The plan is actually an expansion of one offered by former Treasury Secretary Henry Paulson last November.
Although the move is expected to help both consumers and small business owners, the Treasury has not said when (or whether) the program might take effect. If you own a small business, your need for good cash flow is constant. One way to ensure that your business has the cash it needs is by arranging a merchant cash advance through Rapid Capital Funding.
A merchant cash advance leverages your future credit card sales now to put the cash you need into your hands right away. Most merchant cash advances can be delivered in 72 hours or less. Special restaurant financing plans are available that can put as much as $250,000 into your bank account in seven days or less. Best of all, there’s no monthly loan payment to make. Your advance is repaid when you make your credit card transactions. Nothing could be simpler, and there are no restrictions on how you spend the money.
Don’t wait to see if the government’s plan will help you out. If you need cash, contact Rapid Capital Funding today!
Photo Credit: Steve Woods
Bookmark it
Leave a comment