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Automotive Business Financing: Small Business Financing
It’s no secret that the auto business is in a tough spot these days. One group of auto repair shops in New Jersey faced a difficult choice last week: pay $8,000 for new equipment or lose the right to issue state motor vehicle inspections. For many shop owners, the $8,000 bill was a hard hit. In most cases, when state inspection shops need new equipment, the state provides a financing deal that enables repair shops to pay for the new equipment over time. Not this time. Shops without the money or without private
automotive business financing found themselves on the outside looking in.
The State of New Jersey recently renewed its contract with Parsons Commercial Technology of California. The state’s agreement with Parsons allows Parsons to demand full payment up front for upgrades to the state inspection equipment delivered by a third-party supplier. The equipment is not yet available and many shop owners are unable to finance the purchase.
For businesses in such circumstances, Rapid Capital Funding provides a loan alternative known as a merchant cash advance. For small business financing nothing compares.
A merchant cash advance enables you to sell a portion of your future credit card transactions for cash up front. Use the cash for anything you need for your auto business. Financing purchases of new equipment, space remodeling, training or hiring can all be done with the proceeds of this loan alternative. As your Visa and MasterCard transactions are processed, a small portion of each sale goes to repay the merchant cash advance. The rest comes back to you. It’s a hassle-free, stress-free way to get the money you need to keep your auto business running right. Contact Rapid Capital Funding for information on putting your future credit card transactions to work for you today!
Photo Credit: Peter Bromberg, via Flickr
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Automotive Business Financing: Penske Purchases Saturn From GM
GM announced on Friday that it had reached a deal with auto racing superstar Roger Penske to sell the troubled carmaker’s Saturn brand. Penske Automotive Group says that initially it will offer Saturn franchises to all remaining 350 Saturn dealers, and keep all 13,000 employees on the payroll. GM will produce the Saturn Outlook, Aura and Vue vehicles for Penske on a contract basis for the mean time. No information on the
automotive business financing arrangement between GM and Penske Automotive Group were released, but the deal will have to pass muster before a federal bankruptcy judge.
Penske will also use the dealer network to purchase and sell other GM vehicles, as well as products from Renault SA. It is believed that Penske Automotive Group (PAG), which is traded on the New York Stock Exchange, has enough working capital to finance the deal. GM is providing $2.5 billion to finance the buy out of parts supplier Delphi by a private equity firm.
If you’re in the automotive business, no matter how large or small your operation is, Rapid Capital Funding can provide an outstanding loan alternative to get you the working capital or automotive business financing you need.
Designed primarily to meet the needs of small business owners, Rapid Capital Funding can get you the financing you need in a matter of hours, without credit checks, long application processes and low success rates. Good credit, bad credit and no credit are all OK. As long as you accept Visa or MasterCard at your automotive business, financing is available for you. Contact Rapid Capital Funding today to learn more about our loan alternative and how it can get you the working capital you need right now!
Photo Credit: David Mason
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Franchise Business Financing Business Loan Alternative
In the past two weeks, nearly 2,000 automotive dealers have found themselves in a triple bind. Initially, they received letters from Chrysler and GM informing them that their franchises have been terminated. Some franchise agreements will expire in as little as 30 days while others will end sometime in 2010. Shortly after receiving these notices, dealers were also informed that they no longer qualify for financing from banks and other lenders. Worse than that, state laws prohibit some dealers from selling the vehicles remaining on their lots once their franchise agreements have expired.
This exceptional situation is playing out around the country and dealers are scrambling to find financing. While some dealerships plan to remain open, selling other brands, used vehicles and providing auto service, the loss of a franchise and financing hurts. Rapid Capital Funding can provide franchise business financing in a matter of hours. Unlike banks who instantly dropped these customers, Rapid Capital Funding will provide the financing your dealership needs to work through this rough spot.
A business cash advance can provide franchise business financing no matter what your circumstances are. Good credit, bad credit or no credit – no problem. Rapid Capital Funding’s business cash advance is a business loan alternative that delivers.
Contact Rapid Capital Funding today to learn more about this business loan alternative and how you can use it to get the franchise business financing you need in good times and bad ones, too.
Photo Credit: Alfonso Surroca, via Flickr
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Taxi Or Limousine Business Financing Business Loan Alternative
If you run a
taxi or limousine business, financing is of the utmost importance. Your vehicles need to run sometimes 24 hours a day. You need special licenses, non-standard registration, expensive insurance, a steady supply of gasoline, and regular maintenance on your vehicles to keep your taxi or limousine business running smoothly. Banks aren’t likely to provide you with the taxi or limousine business financing you need, but a
business loan alternative called a
merchant cash advance may be your source of “just-in-time” cash.
A merchant cash advance isn’t a loan; it’s a business loan alternative that makes a lot of sense for businesses that accept Visa or MasterCard and generate at least $2,500 each month in credit or debit card receipts. Rapid Capital Funding will purchase a portion of your future credit card sales. As the transactions come in, a small percentage is diverted to repay the merchant cash advance, and the rest comes back to you. You get the taxi or limousine business financing you need to keep your cars on the road, and easy repayment terms.
Because the merchant cash advance isn’t a loan, no collateral and no personal guarantees are required. You also won’t get a fixed monthly payment. Your repayment schedule is flexible and follows your business cycle. When your transaction volume is high, your loan is repaid more quickly. When your business slows down, so does the rate of repayment. A merchant cash advance is a business loan alternative that makes sense for your taxi or limousine business financing needs in these uncertain economic times.
Contact Rapid Capital Funding today and let us show you how to put your future credit card transactions to work today!
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SBA Loans May Not Give Your Business Cash
A lot is being made lately of President Obama’s plan to help small business. Buried in the American Recovery and Reinvestment Act of2009 is $15 billion earmarked for the repurchase of
Small Business Administration loans. The move is designed to free up new cash for lending to other small businesses, but the effect of the changes is anything but clear.
The move is an effort to jump-start the frozen secondary credit markets, but many analysts caution that it will take a lot more than a few billion dollars to get banks to make new loans. Experts caution that the small business provisions of the bailout will help a limited few businesses. Most small businesses will not be eligible for assistance, nor will many small businesses want to take on loans to get through difficult times.
More in line with what small businesses need is the new aid recently promised by the Obama administration to the automotive suppliers. Some suppliers will be able to tap into TARP cash in order to weather the storm. These suppliers will be guaranteed enough cash to make their payrolls, and industry analysts say the plan had better work. An estimated 600,000 jobs hang in the balance, and a significant drop in the number of suppliers or the availability of auto parts could spell disaster for not only the Big 3 but any automaker who builds cars today.
Cash is what small business owners need most right now but banks aren’t lending, even with increased SBA loan guarantees by the federal government. If your business needs cash, and accepts Visa or MasterCard, you may be eligible for a merchant cash advance. Unlike a regular credit card cash advance, a merchant cash advance uses the power of your future credit card transactions to deliver the cash you need for your business today. As your transactions come in, a small portion of the revenue is diverted to repay your cash advance.
A merchant cash advance is flexible, too. You can receive as much as 1.5 times your average monthly credit and debit receipts, and because repayment is based on your transaction volume, your repayment rate remains in step with your business cycles. When your transactions increase, so does your repayment rate. When transactions slow, your rate of repayment slows, too.
A merchant cash advance doesn’t depend on your good (or bad) credit, so no matter what your credit looks like, you can still benefit from a merchant cash advance. Contact Rapid Capital Funding today to see what we can do for you.
Photo Credit: Shai
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Suppliers Ask Washington For $25B Auto Bailout
As the nation reels from the staggering $800 billion bailout received by Wall Street, another group is seeking assistance. The
auto bailout saga continues this week as auto suppliers are in Washington, DC for discussions with Treasury officials to ask for more than $25 billion in aid. Many of the suppliers say they are on the brink of bankruptcy now and fear that the will be unable to continue manufacturing operations without federal assistance.
The Motor And Equipment Manufacturers Association submitted an 11-page request to the Treasury Department this week. The group represents more than 400 automotive suppliers in the US. According to the document, massive layoffs and supplier closures are imminent without the aid.
Unlike automotive manufacturers, an auto supplier is often a small business financing its operations with orders from one or two large manufacturers. In recent months, the major automakers have increased the length of their payment cycle, causing cash flow problems at many of their suppliers. The delayed payments have forced auto suppliers to cut back on operations and scale back their workforces. Supplier bankruptcies would affect not only domestic automakers, but would also have a negative impact on foreign automakers with manufacturing operations in the United States.
In December, the Bush Administration extended $13.4 billion in aid to General Motors and Chrysler to shore up those companies. Ford Motor Company did not accept any bailout funds from the Federal government, but did acknowledge earlier this week that it had tapped a $10 billion line of credit that the automaker had previously secured. According to papers filed with the Securities and Exchange Commission, the money will not be used to fund operations but will be used to enhance the company’s cash reserves.
For small businesses with short-term cash needs, Rapid Capital Funding can help. Rapid Capital Funding can provide a merchant cash advance for US-based businesses that accept Visa or MasterCard and have credit card sales of more than $2,500 per month. A business cash advance is unsecured credit that can put up to $250,000 into your business operations in seven business days. Most advances are completed in even less time. There are no restrictions on how the cash can be used, and repayment is made when credit card sales transactions are processed. Whether you want to increase your cash reserves, use the funds for operations, payroll or any other expense, Rapid Capital Funding can help.
Photo Credit: Dani Simmonds
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The us auto industry has been on its back for several years now. The situation has accelerated with the most recent credit meltdown and all three are running to capital hill seeking a bailout. It seems like under the current circumstances this request should be met with a resounding YES. If any of you paid attention last week to the latest jobless claims, over 500k for the month!
Well what are we missing? The worst financial crisis since the great depression, staggering unemployment, ECT. ECT. ECT…… Then why do the big three have to get down on their hands and knees and beg? Did AIG have to beg? Did Citigroup? The list goes on and on. The largest manufacturing industry in our nation that represents over 4 million US jobs and our government might let them go bankrupt.
There must be a better way. If I where in charge here is what I would do;
I would give them a small short term bridge loan so that they could survive over the next couple months and meet obligations. During this period I would require them to hire bankruptcy consultants and put together a plan for a packaged bankruptcy. The government would provide the financing to pull them out of bankruptcy. This would do a couple things.
Flickr Image by: Congressman Markey
It would allow the automakers to restructure with their creditors, unions, employees, and most importantly get rid of all the legacy liabilities that have been haunting them for years.
Give consumer the peace of mind that the big three will survive and come back stronger. This way we still buy cars from them because we know the government supports the industry and its survival. All warranties will be honored.
Once this is accomplished the entire industry will be poised for restructuring and will continue to thrive for many years.
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