Are Banks Expensive?

January 19th, 2012

The recent mortgage crises displayed the devastating effects of what can happen to a homeowner that is over-leveraged. Using the equity in your home can be an option, but it can be an expensive one. If you would like to borrow $100,000 in equity on your home at 8% over 30 years, you will pay back a total of $264,160.46. Late fees and other charges will add a significant amount to this number.

TMK offers an alternative: Working together, we determine a dollar amount that will provide liquidity and growth for your business. Then we determine a cost for that money, which is a fair and agreeable number. The advance is returned by paying a small percentage of your credit card revenues each time you batch out with your processor. By doing this, you never have to worry about when your bill will come in the mail, writing checks, or missing a payment and incurring large late fee. Because it’s based on your business volume, you don’t have to worry about a fixed payment (like a mortgage) that you might not be able to pay if you have a slow month.

Posted in business loans, credit card factoring | No Comments »

The Ease of a Merchant Advance

December 29th, 2009

For many small business owners, getting funding from a bank could be difficult. Statistics show that one in a hundred businesses opened in the same year will still be around two years later.

The businesses that survive are around because the owner had a great business plan and they stuck to it. With this business plan, the owner was able to secure a start up loan from a bank or other lender.

Despite their savvy business operations, these owners could be faced with a need for funds on a short term basis, and requesting these funds from a bank might not be plausible. This is where a merchant advance could be a great business move.

A merchant advance is simply borrowing on the future revenues of your business. The lender reviews the past four months of credit card sales for your business.

Once they determine your maximum borrowing amount, they give you an offer for an advance. The best part about this advance is that you can usually pay off the balance in less than a year.

Because of the nature of the advance, many might be skeptical about how it works. It is actually an easy process for the borrower, and it does help businesses that need money now. After the lender has reviewed your business’ credit card history, they determine how much they are willing to lend to you.

Depending on the amount you borrow, they will determine a percentage for withdrawal. This withdrawal percentage will be taken from each credit card transaction that you perform.

To be convenient for you, these are percentages, not fixed amounts of each transaction. That way your business is not overly affected during slow traffic seasons.

The automatic withdrawal is done every time you close your credit card batch. At this time, each percentage that has been withdrawn is totaled and the amount is sent to the lender. No paperwork or checks are needed on your end to complete this transaction.

Another great feature of the merchant advance is that there is no set repayment schedule. They analyzed your credit card history, so the lender will know the potential of your business. In other words, an advance saves you from the normal headache of dealing with lenders.

You can never make a late payment, so you are in great shape to be able to concentrate only on your business.

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Posted in business loans | 30 Comments »

Business Credit Loans Can Save a Business

December 26th, 2009

As you probably know, the economy was dreadful last year. Millions of families struggled like never before as the United States saw it show signs of mortality. It was difficult to believe that the immortal force that was the United States economy could collapse like it had.

Thankfully, it looks like the country is making its way out of this slump, so this is a great sign for everyone in the country.

This is especially gratifying for any small business owner that was able to survive the past year. Our business was able to survive because we took advantage of merchant advances and business credit loans. Business credit loans were calculated depending on our future credit card transactions.

It is similar to a merchant advance in that the lender determines my borrowing amount on my past credit card history. I have to meet other prerequisites like a three thousand dollar a month minimum credit card batch.

This was easily met by my company, so the lender was willing to forward me the money. I had never heard of this type of lending, so I was amazed to hear how beneficial it was for me and my business.

According to my lender, I would not be required to make any payments on my own. By coordinating with the credit card vendor, the lender would be repaid every time I had a credit card transaction.

At first I was afraid that I would not receive any of my funds from the credit card transaction, but I was glad to hear that the lender receives a small percentage of each transaction.

I would not have to do anything extra in this process either. The lender would receive their funds from the credit card vendor. I simply had to close the batch at the end of each business day.

I was glad to hear that the repayment process was so convenient. I was impressed that I could borrow funds and not be restricted to a fixed repayment plan.

I had always had a fixed repayment schedule in the past, so this new type was news to me. I was glad that I had sought out a provider of business credit loans. My business was able to survive because of this advance.

Without the loan, I would have had to close down my business and be like the thousands of others who had to close their businesses. Now, I have a booming business thanks to the recovering economy and my lender.

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Posted in business loans | 3 Comments »

Secure Business Loans, Women Have Stormed the Industry

December 24th, 2009

For any small business owner, it can be difficult to align a merchant advance or any business loans. Women business owners especially face this issue.

Despite recent reforms in the business world, many do not see the impact female business owners are having in the market. In some instances, they have been much more successful in operating a business than men have over the last ten years.

Because of their lower failure rate, it is much easier to secure business loans. Women have to meet the same standards as male business owners, but sometimes prejudice could lead to them facing issues in the business world.

It is not the easiest topic to discuss, but prejudice is always present in the business world.

Whether it is in the workplace or when a business owner is trying to secure a short term loan to help their business. Despite the efforts one can make to avoid these unfortunate situations, it is difficult to completely avoid underhanded business tactics.

When one is faced with a lender who refuses to do business with them because of sex or race, there are other lending options available that might be better suited for your business.

If you have a business that has been in operation for at least two years in the same location, then a short term merchant advance could be the answer to your funding issues. With a merchant advance, you are not locked into a long term contract with the lender.

Any amount that you do borrow will be repaid within a year, with little or no effort from you. This is a great situation for any business owner who needs to align funds quickly, with no long term implications.

A merchant advance works similarly to a cash advance. It advances funds that your company would normally make ahead of time in order to help your business grow. After an analysis of your past credit card transaction history, the lender will make an offer.

If you decide to receive the advance, then they will send you the money within seven days. Once you receive the funds, repayment is simple. They will simply take a fraction of each credit card transaction until your balance is paid.

There are no late fees or a fixed repayment plan. The repayment flows with your business, and you can worry about more important matters.

This is an easy way to avoid long term business loans. Women business owners have helped themselves be more successful than their male counterparts by taking advantage of this type of lending.

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Posted in business loans | 2 Comments »

Make Your Company Grow With Merchant Advances

December 23rd, 2009

I recently found my company in a difficult situation. With the struggling United States economy, many of my suppliers were demanding that I make my payments for everything I had received.

I was facing potential legal action from companies I had been using for ten years, so I was extremely worried. I knew that with the current economy, it would be difficult for me to secure the funds I needed from my local bank.

In fact, I was in this situation because my bank could no longer afford to extend me a line of credit and I was denied SBA business loans. I had heard from a friend about the potential of using merchant advances, so I decided to look into it and find a lender.

I was worried that I would not be approved or meet the requirements set for merchant advances, so I was beginning to lose hope for my business. I was surprised to see that the lender merely required a monthly credit card sale vale of three to five thousand dollars.

I easily met this requirement, so I began to gain hope. I was also required to have been in business for a minimum amount of years, and I also met this prerequisite.

I met everything that their website listed, so I decided to apply for the advance. I submitted my past credit card transaction history and my application.

I expected to hear back in about two weeks, but I was shocked when I receive a call later that day. I had been approved for an advance for a substantial sum. With those funds, I would be able to pay off all of my supplier debt, and I would be able to purchase more inventories for my business.

This was a great situation for me, and I was even more impressed when I found that I was not tied to any specific repayment schedule. The lender would be repaid from my credit card transactions.

I would also be eligible for another advance once I repaid sixty percent of my current advance. This was great to hear given that I did not know how the future would hold for my business.

It has now been eight months since I borrowed the funds from my lender, and I have repaid my initial advance.

I have made merchant advances an integral portion of my business because it is the best way to help my business grow. It has been a savior for my business.

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Posted in business loans | 5 Comments »

Get Your Business Sba Business Loans

December 21st, 2009

There are thousands of families that have made a stand for themselves and opened their own business. With their own business, they can be their own boss, and there are almost unlimited profits for them.

With the potential for this profit, they are also liable to face significant losses. Many potential small business owners do not know how difficult it will be for them to align the proper funding for their business.

For some of the population, it would be easy to secure sba business loans from a lender. Without these sba business loans, it would be difficult for anyone to align the proper funds to run a successful business.

If a company has a good business plan and the owner has a reliable credit history, then it is usually not difficult for them to secure a start-up loan or a merchant advance from a bank or other lender. With these funds in hand, it is relatively simple for a company to begin the process of opening their business.

More than likely, you will already have a location selected, so the only step to open your business is to prepare it for opening day.

Most of these expenses will be covered from your small business loan, so assume that you have been opened for three years and the business has been extremely successful. Business has been so great that you are thinking of expanding upon the current location. You want to purchase the property next door to your business so you can expand.

The owner of the building is more than willing to sell you the property, so your only roadblock is to secure the funds necessary to make the purchase. Despite your booming business, you do not have the funds readily available because you had recently purchased new equipment.

Also, the bank is not willing to loan you an additional amount because it has made its lending habits stricter. This could put you and your business in a difficult situation because the usual avenues of borrowing are no longer available.

Thankfully, there is a solution for your business. You can look to an outside lender that is willing to give you a cash advance in the form of sba business loans.

With this advance, you will not be responsible for any long term commitments. Your payments are made automatically through your credit card transactions, and most are paid off within eight months. This is a great way for you to get funds you need now by selling your future revenues.

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Posted in business loans | 14 Comments »

The Ease of Credit Card Factoring

December 20th, 2009

As a small business owner, I can be successful if I know of all the various types of funding. By knowing these different types of funding, I can prepare myself for future loans or borrowing. Because of the struggling economy, I recently found myself desperately in need of funds.

I needed to pay my suppliers and I had nothing available to make the payments. I had tried to apply for sba business loans, but due to new ownership, lending practices had become stricter.

My next step was to find a lender willing to do credit card factoring. Credit card factoring, also referred to as a merchant advance, would be the best solution to my problem.

As a merchant, I receive thousands of dollars a month in credit card sales. Because of my high credit card sales, I was in great shape to receive funding from a lender willing to do a merchant advance.

I knew that many lenders required that I have at least five to ten thousand dollars in credit card sales a month. I was also required to have a lease on my current location for at least a month. These were all prerequisites that I met, so I applied for an advance.

I heard back from the lender within the same day I applied. Based off of my credit card transaction history, I was approved for a merchant advance.

The advance would easily cover my bills and I could use the funds to make other payments that needed to be made. This almost seemed too good to be true, but I was going to get my funding.

The best part about this situation was my payments would be made automatically. I would not be required to make any monthly payments per se. My payments would be made daily, through my credit card transactions. During each transaction, a small percentage is withdrawn for the lender.

When I close my batch each day, the lender will receive their portion from my credit card vendor. I would not be tied to any long term repayment plan or penalized for late payments.

This was easily the best financing option I could have found. I was able to pay all of my bills and have left over fund that I was able to use directly on the business.

I have recommended many of my friends to use credit card factoring with their businesses if they are in need of short term funds.

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Posted in credit card factoring | 24 Comments »

Merchant Advance Has No Limits

December 18th, 2009

A merchant loan, which is also referred to as a merchant advance, is a business funding method that is designed specifically for small business owners.

Small business owners typically have multiple funding options at their disposal, but using a merchant loan offers the best repayment process. With a normal loan from a lender, you have to make scheduled repayments and you are charged interest on the remaining balance.

In this scenario, you will continue the normal process of your business with barely noticing a difference. Angel investors, equipment leasing, startup business loans and other funding choices are all options, but the merchant advance is best suited for small business merchants.

In terms of repayment, most companies will offer a flexible repayment structure with merchant advances. This flexible plan will go with the flow of the business. During low sales months, the payments are automatically decreased to account for the lower daily input.

This lower payment does not make your business incur any penalties or charges. The system is set up to account for these fluctuations in your daily business. If every day was the same, then there would not be any room for growth with a business.

The best part about this system is that the payments are made automatically. When you settle the daily credit care batch, your payment is automatically subtracted and sent to the lender. This saves you time on making payments.

Another advantage of a merchant advance over a traditional loan is the ability to renew the advance. When you have repaid an advance, you can simply renew the advance and receive additional funds to help grow your business.

This does not require any further documentation or questions. In a traditional loan process, this could take weeks to complete, but you could receive your money in a matter of days.

This will put you and your business in a greater position to be successful. Are you afraid that your company’s poor credit history and lack of collateral will hurt your chances of receiving the advance?

There is nothing to fear in this instance. Advances do not inquire about credit history or seek collateral. The only information necessary involves the credit card processing. Another great feature of the cash advance is that there is no limit to your spending purposes.

You can use the funds for whatever you like. If you want to have a company retreat, then it is perfectly legal to use the funds acquired in the advance to fund the venture.

For any merchant business, this is a great way to keep your company competitive and growing in this competitive market.

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Posted in business loans | 29 Comments »

Do Not Rely On a Working Capital Business Loan

December 17th, 2009

The economy struggled last year and, without being able to secure a working capital business loan, many businesses struggled to stay afloat. Although we also saw a shortage of sba business loans, nothing proves tenacity like fighting through adversity.

Despite being rejected by numerous banks for a working capital business loan, my family was able to find ways to succeed in the business world. We had a business that was facing an expiring lease at our current location.

Our landlord was desperate to make a profit, so they raised the monthly rental by thirty percent. Of course there was no way we were going to make this type of change, so we decided to find a new location.

This was going to be a risky move because many of our customers were not English speaking. Despite our efforts to communicate the future change, we ended up losing numerous customers.

We began a search for a new location, and we hoped that we would be able to find something that could benefit us and be convenient for our customers.

We were extremely lucky to find a location across the street from our old location. The size of the property was about two thirds what we had before, but the rent was one sixth of the cost.

We found a landlord who simply wanted to fill the space, and he did not want to cheat us out of the location. We signed a two year contract, and began our move. Our previous landlord did not like that we were leaving, so they demanded we pay the remaining three months of rent immediately.

That was over sixty thousand dollars, and we did not have those funds available at the time. We were denied for a working capital business loan, so we had to find alternative sources of funding.

This was disheartening because we had found a great future location. We contacted a company that could provide us with a merchant advance and inquired about our chances of receiving a merchant advance.

We met all of their prerequisites, but they were worried about us moving locations. Their regulations stipulated that we have at least twelve months left on our lease for any merchant advance. We stressed how our location was simply across the street from our current location, and we hoped this would be enough.

Apparently, they sent someone to inspect the old and new locations, and decided that we should be given the advance. Thanks to the advance we were able to move on from our old location and continue to succeed in our new location.

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Posted in business loans | 30 Comments »

Traditional Loans in a Tough Economy

December 15th, 2009

The economy has been in shambles for the last year, and this has directly affected small businesses the most.

The small business owner is the driving force behind the economy, but sadly, only the large businesses received any of the bailout funds designated to save businesses.

Despite the bailout money, banks have failed and the government is seizing many of these banks assets. Many of the large companies still failed. These were long standing companies, so it is not optimistic for the small business owner.

With unemployment in the double digits, it is difficult for many families to survive. To make matters worse, most small businesses rely on these every day citizens, so the small businesses are struggling.

With less disposable income available to families, small businesses are bound to suffer. To make matters more difficult, in my business, our overhead is increasing. Our lease is expiring soon, and our landlord is demanding a twenty five percent increase in monthly rent.

In my experience, such an increase is unprecedented, so I am forced to find a new location. Because I had to find a new location, it was difficult for me to secure a merchant advance for my business. I could not apply for this advance until I was already in my new location, so I had to resort to a traditional method. I went to the local bank and inquired about sba business loans.

This was a last resort for me because I had planned to try and remain debt free during these hard economic times.

I went to various banks and inquired about sba business loans, and I never realized that the process would be so stressful. I submitted loan applications to five different banks in order to improve my chances of success.

I had a history with one of the banks because my family and I had done business with them for the last ten years. I had three short term loans from that particular bank in the past, and I never had an issue repaying the balance of the loan.

At the end of the month, I finally received the results from each bank. To my dismay, only one bank had approved us for the loan. The main issue was that the bank did not offer a great interest rate, but it was my only option.

The bank I had done business with for ten years did not approve my loan application, so this was extremely disappointing. Nevertheless, I was able to secure a loan in order to help my business. My next course of action was to move locations and apply for a merchant advance to repay the loan.

The merchant advance offered a much better financial situation for me and my company, so it was difficult to ignore that opportunity.

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Posted in business loans | 2 Comments »

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