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.

Photo Credit: Konrad Mostert

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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.

Photo Credit: Steve Woods

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Small Business Index Shows Confidence Eroded In January

According to the National Federation of Independent Businesses, small business owners’ confidence in the economy and in their businesses dropped to the second-lowest level ever recorded by the NFIB in the organization’s 35-year history. The NFIB’s Small Business Optimism Index fell to 84.1, from 85.2 in December 2008.

The organization remains hopeful that signs of recovery will begin to appear in the second half of 2009, but acknowledges that any recovery is unlikely to begin through the second quarter of the year. In addition to the glum outlook for businesses, small business owners reported a significant decline in average employment in January, though capital expenditures remained steady in January, after falling five points in December. Nearly 60 percent of respondents reported a drop in profits in January.

The NFIB says that the number of deferred expenditure plans rose two points, but reports that owners aren’t making big plans to build inventories, and 20 percent fewer businesses expect to see their sales rise, an overall drop of 2 points. The outlook for expected credit conditions was largely negative, dropping fourteen percent from January. Four percent of respondents indicated that credit and financing are their single most important problems right now. Thirteen percent of respondents say that loans are harder to get now than in the past, and demand for loans is at a low.

The drop in loans could signal tough times ahead for some small businesses. Combined with tightened lending restrictions, some small businesses that would normally borrow to get through rough spots aren’t able to get the operating capital they need to stay afloat.

For some businesses, an alternative to a loan is a merchant cash advance. A merchant cash advance can put the cash you need in your hands right away, without the weeks or sometimes months of waiting that can accompany a traditional loan. Even businesses with less-than-perfect credit can qualify.

A merchant cash advance isn’t like a loan. Instead, it’s a cash advance on your future Visa and MasterCard credit transactions. Your cash advance is repaid as you take in new transactions. Nothing could be easier! Most advances are delivered in less than seven business days, and you can request an advance of up to 1.5 times your normal monthly credit card receipts. There are no restrictions on how the cash is used, and 95% of all applicants are approved for the advance.

If you need cash to keep your business moving, turn to a name you can trust: Rapid Capital Funding.

Source: NFIB
Photo Credit: Ben Earwicker

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