One of the most attractive and growing in popularity alternative financing options is a business cash advance. This alternative small business loan is an upfront advance of capital in exchange for future payments based off of monthly gross sales. The reason for the growth in this lending product is that there is a very high approval rate with a flexible payback program. Many women do not know it but just by owning a business makes them eligible for a business cash advance. Even women who have bad credit are eligible for this type of business loan.

Many lenders have recently become aware of the growing need for women small business loans. This awareness has sparked a surge in a particular type of targeted advertising around women and business loans. Women are well respected for their strict financial and business management and that is why lenders are willing to offer them small business financing. The only reason business cash advances for women has not skyrocketed is because there is just not enough recognition that there are lenders willing to finance women owned companies or about this financial product.

Judging from the growing numbers of women owned companies and the availability of traditional financing it is reasonable to assume that there is going to be growth in the business cash advance industry with women business owners as the borrower. Lenders are beginning to recognize this opportunity and have launched targeted campaigns to increase their female client base. If the economy continues to struggle it is very likely for many reasons that women will look for alternative financing to keep their businesses open and a business cash advance will be the likely option.

Timing is everything when you are a business owner seeking financing. Traditional bank loans have a long and arduous application process. Sometimes it can take as long as 3 months or more to get a bank loan approved. More importantly, there is a very high likelihood that your application will get denied after such a difficult process. Your business does not have the time to wait because competition today can be brutal and capitalize on any of your missteps. A denial will not only prove to be crippling for morality, it can result in the failure of your business after so much time has passed.

A merchant cash advance application can be approved within 24 hours and you can be funded in as quick as 72 hours. The reason for this fast process is that there is a very short and simple application. There are no lengthy credit checks because this business financing option mainly considers your most recent monthly gross revenues. What is even more significant is if you own a business generating even a small amount of revenue you are more than 90 percent likely to get approved. Having the funding when you need it can actually be a catalyst to a successful business in more ways than one.

Another negative about traditional bank financing is that it interest based so the longer you take to pay off the loan the more money it will cost you. Additionally, the payments that you have to make are often bulk payments and they are constantly looming over you no matter how your business is performing. These terms are not particularly favorable and can often result in failed or late payments, and the additional fees associated with them.

A merchant cash advance is almost the complete opposite. There is not interest associated with the cash advance there is simply a fee attached to the loan and the amount never changes. Whether you take 1 month or 18 months to pay off the merchant cash advance the amount never changes. What is even more advantageous is that you agree to pay off the business cash advance with a small portion of proceeds from future sales. If your business goes through a slow period because you generate less sales you will most likely make smaller payments. There is not a large payment hanging over your business and a loan amount that grows exponentially. Additionally, the payment process is done electronically so you never have to worry about late payments or additional fees.

In the business world receiving financing when you need it can be the difference between making money and losing it. Also, having a flexible payment process can be beneficial in unlimited ways. A merchant cash advance is a great alternative to traditional bank lending and can be the difference between the success and failure of a company.

The most important reference you should look at before working with a merchant cash advance lender is to look up their business rating with the Better Business Bureau. If a merchant lender cares about their consumers they will have an A rating. Most of the reputable lenders will have a logo from the BBB and a link to their profile somewhere on their website homepage, usually in the lower portion of the screen.

The Better Business Bureau does a lot of background work to make sure the lender is consumer friendly. At the BBB website you will see several factors as to why they have such a rating. You will see the length of time the company has been operating, whether or not the lender has complaints filed against them, and some other useful hints to determine the credibility of a lender.

It takes a very small effort to ensure you a working with a reputable merchant cash advance company. In just a few minutes of your time you can have a lot of useful information about a company. Knowing about a lender before you do business with them will likely lead to favorable results if you are a business owner seeking a merchant cash advance.

I am sure that any successful business women will recall points on the road to success that involved juggling creditors and maneuvering through unworkable budgets. Businesses inherently go through down cycles and when you are ambitious you often try to take on more than your business can handle. We all learn from our mistakes, but let’s face it, we have to make them first. With that said, operating a business often involves what may seem at times insurmountable debt.

Naturally as you incur more debt the higher the probability you will lose points on your credit score. Any score calculator would automatically deduct points from your score as your debt grows, so the algorithm these folks in the credit reporting industry created handicaps new and early business owners from the start. In a perfect world all your bills would get paid on time, but in reality, because you are not working and getting a set paycheck that you can manage accordingly, your risk for default grows exponentially.

Many of your outstanding invoices will not be paid on time, inventories will fluctuate dramatically, and certain creditors must be paid first for a business to continue. This is a chess game and not paying a creditor might actually be a good management decision. That is why bad credit does not mean bad management.

There are many stories behind a credit report and what we see on paper is not indicative of a business owner’s ability to manage their credit and overall business. That is also why credit is repairable and measured in periods of time. Even the guys in the credit reporting industry knew there should be a shelf life for derogatory posts.

There is almost no doubt that any successful business owner will tell you of a time where their credit history was in the toilet. Just consider the fact that every credit report starts off bad before it becomes good. This is the reason why many alternative financing companies offer business loans for women with bad credit. There are a lot of good companies out there with bad credit and there is no way a piece of paper can demonstrate the management abilities of the owner of that history.

Although you may experience an enormous amount of stress relief from abandoning your small business, it is a critical mistake that continues to be pervasive in the business world. The reality is that most business owners simply need access to financing when they find themselves in this type of economic crunch. Most small businesses fail because they cannot maintain the budget requirements during slow business cycles. The sad part is that ALL small businesses will go through difficult times before an owner has the reserves to deal with such a crisis. It is finding a solution during these periods that will make your business and you as an owner successful.

The solution is a merchant cash advance. This type of business loan is the strategic tool that no small business can operate without. You do not need great credit or collateral to secure this type of financing. All you need is a business that exists for more than three months that receives some sort of revenues and you are eligible. You can secure this type of cash advance for your business and it can be paid back using a portion of your future receivables. Another great feature of this type of business loan is that you can use the cash however you wish, there are no restrictions.

Use the merchant cash advance to get creditors off your back, replace or upgrade existing equipment, hire employees, market your business, just about anything you can think of to advance your business through those difficult cycles. In fact, your competition is probably struggling as well so you will be one step ahead of them.

Small business owners can survive economic downturns by obtaining a merchant cash advance. There are many online merchant cash advance lenders who will be happy to get you the financing you need. There is no longer any reason to close your business, get the financing you need and apply for a merchant cash advance today.

What is a Payday Loan or Cash Advance

A payday loan, also known as a cash advance or payroll advance, is a short term loan usually secured by a personal check or an ACH (Automated Clearing House), an authorization on the borrower’s bank account similar to a direct deposit. Some online companies receive access to a borrower’s account to receive as well as repay the loan. Other companies may simply hold a personal check for the advance amount plus interest.

Most companies that provide a cash advance or payday loan offer borrowers anywhere from $100 to several thousand dollars. A borrower does not require perfect credit to secure this loan. The amount borrowed plus interest is generally paid back in a week or two when the borrower receives his or her paycheck, but it can be extended for a fee. This loan product generally targets the individual looking for immediate cash to deal with everyday expenses. Although this loan product is often recognized as a cash advance, it is completely different from a merchant cash advance or business cash advance.

What is a Merchant Cash Advance/Business Cash Advance

A merchant cash advance also commonly referred to as business cash advance is a short term loan secured by a company’s future credit card sales. The two terms are often interchangeable. The lender establishes access to the borrowing company’s credit card processing institution and then electronically is repaid a portion of each credit card sale towards the advance. The processed payments end when the amount of the cash advance plus a set interest amount is paid back.

Most lenders that offer a merchant cash advance or business cash advance are targeting business owners as borrowers. As with payday loans the borrowing company does not require perfect credit. The loan amounts typically range anywhere from $1,000 all the way up to $500,000 and more. This type of loan plus the interest amount is usually paid back anywhere from a few months to a year or two depending on how the advance is structured. This product is considered alternative financing for businesses that cannot secure financing through traditional lending options.

If you are an individual looking to secure a small amount of financing for a very short term than a payday loan is likely the product you are looking for. However, if you are a business owner trying to secure a larger amount of capital for a longer term then a merchant cash advance or business cash advance is likely the product right for you. Although the names used to describe these products are similar there are very clear distinctions as to the type of loans they are and the type of borrower seeking financing.

You might not be aware of it but your restaurant is eligible for a merchant cash advance. This is a business loan that is given to existing companies that process credit cards. It is an exchange of financing up-front against future revenue. The cash advance can be utilized however you see fit, there are no restrictions. With all of the bargains wasting away in our cash strapped society it is critical that you take the initiative today and advance your business. When you see a competitor building up his or her business and you are wondering how they can afford it during these difficult times, there is a good chance they are one step ahead of you and have already begun using the capital financing made available to them.

Many of our clients have began purchasing new and used equipment for their restaurants. If you look on Ebay you will see restaurant machinery and equipment with mark downs as much as 50 percent or more. This type of buyers market for all the equipment you can use to expand your restaurant will not last forever. It is not just the equipment that is available at rock bottom prices.

Many clients are choosing to use their merchant cash advance to purchase the buildings that they currently lease. You don’t know it but there is a good chance that your landlord is in foreclosure. Not only that, but real estate prices are fantastic and mortgages are at the lowest levels in 30 years. Real estate owners are willing to negotiate more than ever just to release some of their properties. It is time to take advantage of the situation.

You don’t have to buy a building to expand your restaurant, you can also do some construction and either add or utilize your space more effectively. That’s what makes a merchant cash advance such a good business tool, you can use the money wherever you think you can capitalize. Contractors have been struggling for several years now and they are willing to bid low on projects just to keep their teams working. Solicit 3 bids for any work you plan on doing, and you will be surprised how cheap it can be to expand or embellish your location.

Expanding your restaurant doesn’t always mean you have to buy more equipment or increase your space, many clients are using their merchant cash advance to advertise. The internet has made the advertising market very competitive, and television commercials and print ads are practically being given away. Expand your restaurant’s market share by reaching out to the customers that have not heard of you. Offer some incentives in your ads and before you know it you might see double digit increases in your market share.

There are so many ways you could use a merchant cash advance to expand your business. These are just some examples, but there are so many other ways you can use a cash advance to make your business grow. There are a long list of websites with free applications online where you can apply for a merchant cash advance without ever having to leave work. You can get approved within 24 hours and have the money in your account in less than 72 hours. Stay ahead of your competition and take your restaurant to the next level by securing a merchant cash advance for your restaurant today.

Repairing Bad Credit

Naturally the first step you can take to ensure quality financing in your name is to improve your credit history. Repairing your credit is not as difficult as it may seem. You would be surprised how many companies no longer choose to pursue your failed payments. It just doesn’t make economic sense for creditors to pay a nickel of effort towards your old debt. That is just one of the advantages you have to start repairing your credit and securing a high quality loan.

The first step is to get a FREE CREDIT REPORT at annualcreditreport.com, or by calling 1-877-322-8228. This is a free service set up by the three major reporting agencies and by law you are entitled to one credit report annually from each agency. The website is very convenient and you can go to all three agencies via one website and obtain reports, print a copy for your records, and save the reports to your computer. You should make sure to check the box that makes the report available for thirty days so that you may go to the website and challenge the negative history once you have gathered all of your information; otherwise you will have to do it in writing.

If you have already obtained a report within a year you may still be eligible to receive a free report. If you have recently been denied on a credit application within a two month period based on information obtained from your credit history you are eligible. The denial notice will have the agency information that reported the credit history and you will be able to request a report.

Now that you have your credit reports in order the next step will be removing as much of the negative history as possible. You can create an online dispute for any negative information on your credit report the moment you receive the report or any time after. If you have any information to support the removal of the negative history you can provide it with your challenge, but don’t be discouraged if you don’t because you can still challenge any negative data. Simply check one of the available reasons they offer because most people will not have old paperwork lying around.

There is a lot of work required by the reporting agencies and the companies who have posted the negative information once you challenge something. The investigation requires the credit agency to send a letter to the company who posted the negative report. That company now has a thirty day window to respond. Often these companies have either sold the unwanted debt to a collector at a discount or they have written it off already so they are no longer interested in wasting any time or money fighting your challenge. This will often result in an immediate removal of the negative post.

If a collection agency has the debt you can be sure they bought it at a steep discount. That means they are willing to accept pennies on the dollar amount of the debt, especially considering the debt is over inflated with attorney costs and other exaggerated legal expenses. You can call the collection agency and negotiate a very large discount. Make sure you receive the correct paperwork from the collection agency so you can remove the negative credit data with the satisfaction paperwork they send you.

There is also the time element which favors the person in debt. According to the Federal Trade Commission “A credit reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years”. This means that there might be some negative information on your report that you can remove simply because it has passed the statute of limitations.

The law is on your side and there are several acts that you can also use in your defense. The Fair and Accurate Credit Transactions Act, the Fair Credit Billing Act, and the Fair Credit Reporting Act are just some of the laws you can utilize if you do your research. Because there are so many points where a creditor can go wrong with even one piece of paperwork by an uninterested employee, a little bit of research and you can clean up the worst credit reports. For more information about the laws that apply to credit reporting and the legal strategies see Building Your Credit by the Federal Trade Commission.

Improving Your Credit Score

Now that you have cleaned up your report for negative data, it is time for some positive data. One of the most underutilized weapons is secured credit cards. You can start off with as little as a couple of hundred dollars and get a credit card. Get between three and four cards and begin using them for daily expenses. DO NOT make one late payment as you build your reputation. After a year of good work the credit card available balances will start to increase. All along the way your credit score will also start to increase.

Any opportunity you have to build your credit take advantage of it. Whether that means making purchases for friends and family that they would otherwise have to pay anyway, or just finding opportunities along the way to build solid accounts and credit history. You will often make purchases that you can secure with cash and still pay off. For instance, you can secure a business loan with cash and make payments as if you are a regular borrower. This will give you all kinds of credit juice even though you actually secured the debt. Credit agencies do not put the secured terms on a report, it simply will show you took a business loan or credit and paid it off.

Whether or not you have good credit there are many options for business loans. A merchant cash advance is a very useful tool for business owners seeking working capital with poor credit. However, if you are looking for a significant amount of capital at the lowest rates then improving your credit is paramount.

In just a few months you can have a person with no credit and turn them into someone who can go apply for a business loan anywhere. Good credit will often allow you to receive the amount you apply for as well as receiving it at a very low rate. The law regarding credit is always in favor of the individual so use it to your benefit.

There are several reasons why a merchant cash advance is so attractive. First, it has no fixed term. This means that the cash advance is based on an agreement to give the cash provider a very small agreed upon rate of future sales. The benefit from this is if sales are slow for a period of time the payments to the cash provider are adjusted downward. This feature can really make the payback much easier because there is no set payment that must be made every time. By having a smaller payment when business is slow makes paying back a cash advance a very fair process.

Applying for a merchant cash advance is also a much quicker and easier process. To begin, it requires a lot less paperwork. Owners seeking finance can simply go to one of many of the online lenders and fill out a very quick application. Because the process is so simple there are no fees associated with applying. Owners can feel free to explore their financing options without having to worry about time or application costs.

Another great benefit of the cash advance application process is merchant lenders don’t have to follow the red tape of traditional banks. No red tape means that lenders are much more likely to approve applicants who have bad credit. Because the exchange is based on future sales, credit checks are less important, and cash advance providers do not require collateral or personal guarantees. The whole application process for a merchant cash advance not only saves business owners the time and cost of applying to bank after bank, but it also makes it less likely that an applicant will experience the demoralizing sentiment that a rejection can often leave lingering.

Lastly, and a feature that shouldn’t be overlooked, the payments are all set up from the beginning electronically. That means there are no late payment fees or the time consumption involved with paying attention to bills. Business owners often see late fees piling up in trying times because they just can’t deal with the list of creditors sending notices. The structure of a cash advance allows owners to save time and money and focus on their business.

Merchant cash advance lenders provide critical financing options for business owners. The structure of the cash advance has several advantages to traditional financing and can be the difference in whether or not a company succeeds or fails. If you are a business owner a merchant cash advance is a viable option for financing your company.

Here is a list of some online Merchant Cash Advance Providers:

http://shieldfunding.com

http://economyfunding.com

http://unsecuredbusinessloansforwomen.com

http://limefunding.com

Merchant Cash Advance lenders fall into the outer tier lending options. There are two reasons why these lenders look so appealing. First, their lending programs are more risk tolerant due to higher premiums and shorter term loans. Secondly, their lending criteria considers future revenues to pay off the business loans and it puts less emphasis on credit history or prevailing economic conditions.

Why the U.S. merchant cash advance lenders and not the local European firms? First of all, the tightening of the money supply in Europe will have a trickledown effect to second and third tier local lenders because of money supply issues. Also, these local hard money lenders will be emotionally attached to the prevailing conditions that they experience every day and it is likely to make them more aversive to risk. Lastly, the arbitrage possibilities between the Dollar and the Euro, even if it is adjusted downward, will look so much more attractive to the company seeking cash. If you looked in many of the shopping malls and bellwether stores like Macy’s in New York City over the previous two holiday seasons you would have noticed that it was packed with European shoppers. The reason for this was because of the difference between the Euro and the Dollar. European shoppers love to come here and feel like everything they but is at a discount. Well there is no difference if the shopper is someone looking for a loan.

The merchant cash advance industry in the U.S. has seen sparkling growth over the last twelve months. According to Sam at Shield Funding, an industry leader in the merchant cash advance industry, “There has been a 250% jump in deals funded over last year”. Many lenders in the cash advance industry believe the growth has come from business owners learning that the product exists and that there are lenders out there who will lend money simply because you have a business with revenues. This stability and growth in the market will surely make these lenders more aggressive and risk tolerant.

As this industry continues to grow and awareness of the product catches on, there is no doubt that the cash advance industry will open its financial arms to many businesses foreign or domestic. This in combination with the European financial issues it seems likely that the merchant cash advance industry in the U.S. is preparing for additional requests for cash advances by companies in Europe.