Orbit Business Loans | Small Business Blog » Merchant Cash Advance

An Inside Look at a Merchant Cash Advance

Richard B. — Wed, 11 Aug 2010 16:32:45 +0000

A merchant cash advance is a way for small businesses to receive funding without having to worry about the same parameters as seen in a small business loan. You do not have to worry about monthly payments creeping up on you when funds are low. Instead, you just pay back the funding through credit card transactions. It is a hassle-free alternative to the traditional business loan. Here we take a closer look at what it takes to attain a merchant cash advance.

No Credit Score Needed

If you are running a business and credit score is low then it will be tough to qualify for a small business loan. You will have to examine alternative means for funding and a business cash advance is a great way to help your business without putting your assets at risk.

With a merchant cash advance, you do not worry about paying back the money. This provides an instant sense of relief. It prevents stress from building up due to a monthly payment due date is approaching and you are broke. Instead, every time there is a credit card transaction, the lender will attain a payment. It will be a fixed percentage of sales allowing the business to attain earnings along the way. This is a huge benefit for your business does not slow down due to the merchant cash advance.

To find out more about a merchant cash advance, talk to one of our small business loan experts today. He/she will provide you with a number of options, and together we shall find the right fit for you.

The Secret to Small Business Success

Richard B. — Fri, 30 Jul 2010 18:49:38 +0000

Starting a small business is easy, but transforming it into a success is difficult. Only half of all businesses make it within the first five years. It is tough. So here I have devised the top ? tips regarding how to make sure your business flourishes.

Decide on Legal Configuration

Be knowledgeable regarding what type of business is suitable for your company and which one benefits you the most tax wise. For there are different tax breaks when it comes to Limited Liability Companies (LLC) as compared to a sole proprietorship. There are also legal specifications when it comes to trading stocks, personal liability protection, and protecting your personal assets from being put at-risk. Furthermore, find out what state fees are involved in practicing your business. If you learn about these factors from the beginning of your business, you will avoid trouble later on ensuring lasting power in your industry.

Investigate Locations

Find out what is required to run your type of business in the location chosen. Are there city permits needed? Are the customers near your location? Do zoning laws come into play? Think about these aspects prior to opening up business doors.

Prepare Financing

When running a business the unexpected occurs. You need to financially prepare for these “uh-oh” moments. What if a necessary piece of equipment breaks down and you need to buy one immediately to continue business? Or what if your normal vendor runs out of product, and you have to switch gears paying more to buy from someone new? You need to be ready to financially handle these situations. Keep money stored and available for when emergency happens. You do not want to be caught into a bind.

These three tips will keep you around a longtime. To find out more about how to fund your business, talk to a small business loan or a merchant cash advance expert today.

How to Expand Your Business

Richard B. — Mon, 26 Jul 2010 17:36:09 +0000

Small Business Networking Tips

The goal to any business is growth and expansion. It is how you reach more customers resulting in increased profits. It makes good business sense. But how do you achieve this goal? A great source is solely through socializing with others. Here are some tips on how to execute this effectively.

Make the First Move

Do not wait until someone asks for your name or comes up to you first. You want to make the most out of the opportunities presented. Just walk up to someone and introduce yourself. It is what you should be doing all the time as a business owner. For you never know whom you are going to meet.

And a good tactic is to ask the person for he/she’s business card. This way you can write notes about the person on the back of the card. I used to do this all the time. It is a good way to keep a personal reminder about the person. For instance, if the person you just met had a baby, then you may write it down. Therefore, next time you speak, you may ask about how the baby is doing. It shows personal attention that is lacking in today’s business world.

One may implement many business strategies without spending tons of money. However, when it is time for the expansion abilities to be put into place, you must have available funding. Talk to a business cash advance or a merchant cash advance professional today.

How to Approach Financing for a Start-Up Business

Richard B. — Fri, 04 Jun 2010 12:45:56 +0000

Some lenders will not accept your application for a small business loan without proof of your business successfully running for a specific amount of time. But what if you are just starting? How do you receive financing without a given history? Some people turn to private investors. However, there are other options. There are lenders who believe in your vision, and provide financing needed. You just have to find the right business loan best suited for your company.

Do Research

Before jumping in and applying for a loan, go online and examine which lenders offer money for start-up businesses. Read reviews, find out what other people are stating about this particular business. Study the rates offered. You do not want something unreasonable. You need to find rates that you can afford.

Read Requirements

Once you have narrowed down your search, start comparing. Read the fine print. Be certain the loan requirements are as expected. Have another person review the terms. You do not want to be caught in a negative situation putting your business, credit history and assets in jeopardy.

Prepare a Business Plan

Any lender would disapprove of a loan without seeing the plan you have prepared for your company. A lender wants the strategy mapped out regarding prediction of income, costs, and earnings. What is worst-case scenario? What is your monthly repayment plan going to consist of? How are you going to pay the lender back? You need to think out your budget carefully and include it in a well thought out business plan.

If you are starting or running your own business and need financing, talk to a merchant cash advance specialist today.

Top Two Benefits of a Business Cash Advance

Richard B. — Fri, 28 May 2010 11:23:09 +0000

Unless you have been living in an isolated cave with no communication to the outside world, then it is no surprise small businesses are struggling to stay afloat. Sales and profits are down and businesses need to find a financial alternative to maintain operating costs. Small business loans could be one answer, but a better answer is a business cash advance.

High Percentage Approval Rates

The chances of getting approved for a small business loan through a bank is slim. Banks are buckling down on requirements due to the financial crisis the nation is currently undergoing. Thus, a business cash advance has a higher rate of approvals. In addition, your personal credit history is not considered for this type of lending. It is solely based upon your business transactions. Therefore, your odds of receiving a merchant cash advance are higher than traditional means.

Easy Repayment Options Provided

Another benefit is the design of repayment for a business cash advance. Repayments are taken out of the monthly credit card transactions leaving the cash you earn free to utilize as you wish. By creating the system in such a manner, your business is never put to a stop. It is a continuous flow ensuring your business remains open as usual. Furthermore, you do not have to take time out of your hectic schedule to meet with lenders regarding payments. Payments are made automatically. It is a hassle-free manner providing financial lending to your small business without interruptions.

To find out more talk to a small business loan professional today. He/she will review the benefits with you ensuring it matches your business needs.

How to Choose the Right Business Cash Advance Company

Richard B. — Wed, 26 May 2010 17:01:26 +0000

A business cash advance provides small businesses with the opportunity to receive additional funding in a hassle-free manner. There is no collateral required, and it eliminates the long, drawn out application and waiting process found with traditional business loans. However, due to the ease of a merchant cash advance, it has increased in popularity. There are many businesses popping up offering such services. But how do you know if you are working with a reputable company? The following are the top two signs you are working with an experienced and worthy professional.

Communication is Simple

Is the company you chose available upon phone calls or are you directed to voice mail? This is key to finding an effective company. You need to locate someone that is present when you contact him/her. It is shady business if you are never able to reach your contact by phone. If you cannot reach a live person that is handling your finances, then I would look to another company for assistance.

Anything in Print Should be Worded Clearly

Be leery of the fine print in applications, contracts and/or paperwork. Comb through it to be certain there is nothing questionable in writing. Do not sign anything without reading its entirety. You do not want to get into a situation where you are signing paperwork that was not explained to you upfront. It could cause your business to go into further debt. Have a third party read over the paperwork ensuring you are getting exactly what you agreed upon.

If you keep these two attributes in mind, you shall be able to find a company suitable to meet your needs. Contact a professional regarding additional funding for your small business now.

Why Merchant Cash Advance is the Right Choice for You

Richard B. — Mon, 17 May 2010 17:01:16 +0000

There are many advantages to going with a merchant cash advance than traditional financing for your business. Here is a breakdown of the top two pros of why a business cash advance is better than going through a business loan at a bank.

Waiting Period is Shorter

When you apply for a traditional small business loan, the waiting period can be murder on your business. You need financing immediately, which does not happen with a bank loan. You have to wait months before finding out if you approve and even longer before receiving any money. In addition, what happens if you wait the application period to find out you were rejected? Your business will take a huge financial hit. However, with a merchant cash advance, you are able to obtain money in a shorter amount of time allowing your business to bounce back to regular operations. The sooner you return to business as usual, the better your chances are of earning money immediately.

Banks are Cutting Back

Banks are decreasing loan options available for businesses. They are making it difficult for you to receive financing for your company. Thus, you need to look at alternative solutions. A business cash advance is a great way to resolve your financial issues. If you need working capital then it is the perfect solution. It will solve your business financial woes in an effective, successful timely fashion.

To find out more information about how to receive further financing for your business, contact a professional today.

Top 3 Reasons to Choose a Business Cash Advance

Richard B. — Mon, 05 Apr 2010 17:50:48 +0000

More businesses are turning towards business cash advances than a traditional, secured business loan. There are many reasons for the switch. Here is a breakdown of the top three reasons why a business cash advance is more suitable for small businesses.

Business Cash Advance is Quick

Check with a lender to be certain you qualify for a business cash advance. If you do, then you will be happy to discover it takes approximately 24 to 72 hours to be approved, walking away with money in -hand. Alternatively, a traditional bank business loan takes months for the application process and even longer before receiving any cash. This is a huge problem if you need the money upfront to remain open for business covering operating costs. A secured business loan would not be sufficient.

Bad Credit does NOT Harm the Process

Your personal and/or business credit score is insignificant when qualifying for a business cash advance. The eligibility requirements rely heavily on your credit card sales activity itself. Ask a lender for the specific requirements. However, on average, payments are made via your credit card sales transactions. Hence, you must ring up a particular amount of credit card sales regularly to qualify. This is a great option for those with bad credit scores.

Collateral is Unnecessary

A business cash advance is based on different criteria than a traditional business loan. For instance, a business cash advance does not require collateral to be used in the transaction. Translation, your business equipment, property and assets remain safe. This makes a business cash advance a wise choice to pursue.

Find a lender offering business cash advance services. Inquire regarding how long does the process take, what paperwork is needed, and when will you receive the cash. A professional lender will be able to answer all of your questions, and direct you onto the right path to financial recovery.

What Happens When a Business Applies for Bankruptcy?

Richard B. — Wed, 10 Feb 2010 17:48:09 +0000

No matter whether a business is a large corporation or a small business, bankruptcy is sometimes the only way to clear the dust and start building fresh. However, what does that mean when your small business files for bankruptcy? Are you still able to operate or are you forced to close your doors? With headlines featuring Circuit City going out of business, small businesses question what happens when bankruptcy is the route to go. Here are basic facts about bankruptcy in regards to your business.

What Occurs to Your Small Business Credit Report

Before proceeding forth, you need to be aware that if your small business files bankruptcy it shall appear on your business credit report. It will prevent your company from finding funds easily once the process starts. You may not qualify for a small business loan and will need to look for alternative financing such as an unsecured business loan or a business cash advance.

The Differences between Chapter 7 and Chapter 11

There are distinctions between filling for a Chapter 7 or a Chapter 11 bankruptcy. Thus, you need to think about which one is more suited for your situation. With Chapter 7, a court-appointed trustee will begin sorting through your assets. He/she will place your non-exempt assets for sale in order to pay back your creditors. The problem with this option is it places your business at risk causing it to be difficult to stay in operations. With Chapter 11 bankruptcy, you are able to continue operating daily business transactions. However, under Chapter 11 you are legally forbidden to engage in any expansion or growth efforts. It is part of the bankruptcy terms.

Filing bankruptcy should be the last resort for your small business. Try generating further financing through business loans and business cash advance before turning to such drastic measures as bankruptcy and ruining your business credit permanently.

How Keep Client Payments on Track

Richard B. — Mon, 08 Feb 2010 17:59:34 +0000

When you are running your own business, it is difficult to stay on top of your clientele payments. You do not want to be rude when customers do not pay. However, the profits are essential to keeping your company running. So how do you decrease the amount of customers slacking off when payments are due? Here are a few tips to guide you in the right direction.

Offer Options

When a customer is ready to pay, a small business having different payment options is a great way to ensure payment occurs. It is convenient and leaves the customer with minimum number of excuses of why not to pay. Offer payment plans, debit card options and accept various credit cards.

Use the Phone

There are businesses that send out past due payment reminders in writing. This is fine for you should have record of a written notification. Nevertheless, if you are a small business, pick up the phone. Sending email reminders are satisfactory, but the best thing to do is call the client. It is a small gesture, but it translates to your small business exhibiting a personal touch. A client may prefer to hear your voice directly than receive a prompt bill in text.

Put Payment Schedules in Writing

When a client signs up for services, discuss payment schedules off the bat. Talk about the dates for payments received. Discuss penalty fees for sending in late payments. If a client comprehends the expectations from the beginning, then the odds of missing a payment decrease significantly.

If you are still struggling with receiving payments on-time, then check out unsecured business loans or a business cash advance to keep your company afloat until the cash received is straightened out.