Feb/100
What is a Merchant Cash Advance?
It’s been some time since we’ve discussed the basics of a merchant cash advance, so here’s a refresher those of you who may have forgotten.
A merchant cash advance is an alternative to the traditional bank loan. It is a business funding option that is available to merchants (owners of retail and/or service-oriented businesses) and allows them to optimize their credit card sales. Instead of charging interest fees, merchant cash advance providers charge a flat rate for the advance.
Credit card sales are one of the most important factors for merchant cash advance recipients and prospectives. They are the basis for both the funding and repayment of the advance. Depending on a merchant’s average monthly credit card sales, he/she can be funded $5,000 to $500,000. In other words, the higher a merchant’s monthly credit card sales, the more he/she may qualify to receive.
When it comes to repayment, merchant cash advance providers don’t ask borrowers to make fixed monthly payments. Instead, providers will automatically deduct a small percentage of the business’s daily credit card sales.
Merchant cash advance providers place the responsibility of repayment on the business, rather than the business owner. If an establishment goes out of business and is no longer able to repay the advance, (and fraud is not part of the picture) providers must take it as a loss.
Jan/100
Getting Business Funds with Bad Credit
It’s a widely-known fact that in this society, one’s credit score holds a significant amount of weight. Credit scores are reviewed when attempting to purchase a car, rent an apartment, buy a home and receive a credit card.
Unfortunately for small business owners, banks even review an applicant’s credit before approving him/her for a business loan. Those with low credit scores often miss out on the much needed funds to save and/or develop their businesses, simply because of their credit histories, but for these small business owners with less-than-perfect credit, there is another option – the business cash advance.
Unlike bank loans, business cash advance approval is not based on the applicant’s credit score. Instead, business cash advance providers look at a few other important factors, to determine whether a merchant is eligible for a business cash advance and if so, how much he/she is eligible to receive. Business cash advance requirements are as follows:
- The business must process at least $3,500 in monthly credit card sales
- The merchant must have owned the business for at least six months
- The merchant may not have unresolved bankruptcies
- The business lease must have at least one year remaining
Why is Your Credit Score Less Important When it Comes to a Business Cash Advance?
Banks rely heavily on credit scores to determine whether they want to lend to an applicant because they must depend on the applicant’s steady and sufficient repayment to get their money back. Banks need to see that the applicant has a history of making prompt payments, to ensure that lending to a particular business owner will not be a huge risk.
Business cash advance providers, on the other hand, rely on the business rather than the business owner. Instead of requiring borrowers to make fixed monthly payments, business cash advance providers automatically deduct a small percentage of the business’s daily credit card sales. When sales are low, payments are low and when sales increase, payments increase accordingly. This repayment method takes the responsibility away from the business owner and puts it directly onto the business.
Small business owners can still rebuild their credit while they have a business cash advance. And once they’ve reached a credit score of 650 or higher, they may qualify to receive various business cash advance incentives such as, a choice of loan terms of up to 12 months and the lowest rates in the industry.
Business Cash Advance Key Facts
- Unsecured
- Approval in 48 hours
- Funding in as little as five business days
- Receive up to $500,000
- No restrictions on how funds can be used
- Automatic renewal eligibility approximately every three months
Jan/100
Bank Lending Still Decreasing
According to a report released by CNN Money, bank lending is still declining. In fact, according to the report, the nation’s biggest banks cut their collective small business lending balance by another $1 billion in November.
Based on this information, it can be concluded that a widespread need for alternative business funding methods such as the business cash advance, still exists.
Small business owners can take advantage of the opportunity to get up to $500,000 in unsecured business funds, through one of MRI’s business cash advance programs.
- Standard Program
- Starter Program
- Premium Program
- Restaurant Loan Program
Merchants who choose one of these programs will receive unsecured funds, flexible repayments, automatic renewal eligibility and the freedom to use their funds however they wish.
Jan/100
Small Business Owners Benefit from Buy Local Campaigns
Over the past year, many campaigns promoting increased spending at local businesses were launched. The “Buy Local” slogan spread virally throughout American cities. Some cities and some individual small businesses even developed their own plans to boost local spending, such as Danny Cottrell, a pharmacy owner who passed out $16,000 in $2 bills to his employees and told them to spend the money locally (and donate 15% to charity).
According to a national survey, conducted by the Institute for Local Self-Reliance, these campaigns paid off. Holiday sales of survey respondents’ stores increased an average of 2.2%. This is in comparison to figures released by the Commerce Department, which show overall holiday retail sales declining by 0.3%.
This is great news for small business owners, which hopefully will continue throughout this year.
Question: How did your business do this holiday season?
Jan/100
Starting the Year off with MRI
We waved a heartfelt goodbye to 2009 and said a welcoming hello to 2010.
As we embrace the New Year with open arms and anticipation in our hearts, MRI would like to remind you of the programs, incentives and benefits that owners of U.S. and Canada small businesses can take advantage of.
Standard Program
Choose an alternative to the traditional business loan and get up to $500,000 in unsecured business funds. Use the cash with no restrictions; for expansion, advertising, renovation, working capital, etc. Repay your advance through a small percentage of your daily credit card sales and qualify for a renewal every three to four months.
Premium Program
Get the lowest rates in the industry and loan terms of up to 12 months by having a credit score of 650 or higher and by qualifying for a $50,000 merchant cash advance.
Starter Program
Don’t meet standard advance requirements? Get a small advance ($1,000 to $7,000) and prove your creditworthiness for a chance to receive an even larger advance. You will still be able to take advantage of our flexible repayment system and you can still use the funds however you choose.
Benefits
- 48-hour approval
- Possible 7-day funding
- Unsecured
- No restrictions
- Automatic renewal eligibility
As the year moves on, check back frequently for updates on our programs and features available to you through our business cash advances and best wishes for 2010!
Dec/090
Business Cash Advance for the New Year
As we enter into a brand new year, it’s time to say goodbye to the business financing problems of 2009. Dedicate 2010 to improving your business by taking advantage of the alternative business funding options offered by Merchant Resources International.
Use this time to determine which funding program is best for your business (standard program, starter program or premium program). Then, apply for your business cash advance, for the opportunity to have up to $500,000 in unsecured business funds in your account by the beginning of the New Year.
Below is a reminder of the benefits you will receive when you choose a business cash advance.
- 48 hour approval
- Funding in as little as five business days
- Unsecured funds
- Unrestricted usage
- Minimal requirements
- Flexible repayments
- Automatic renewal eligibility
Dec/093
Should I Get a Merchant Cash Advance?
The merchant cash advance can be very helpful to a small business owner, particularly, one who is in need of business funds. Some merchants, however, are unsure about whether they should get a business cash advance.
As a merchant cash advance provider that has been supplying funds to small business owners for over six years, MRI has witnessed many successful business cash advance stories. Below are some of the reasons our merchants have decided to take advantage of the merchant cash advance, maybe you’ll find your reason on the following list.
1. I Don’t Qualify for a Bank Loan
- My credit score is too low
- I don’t have collateral to put up
Merchant cash advance requirements are much easier to meet than most banks’ business loan requirements. The merchant cash advance is completely unsecured and we can fund merchants with less-than-perfect credit scores.
2. I Need Fast Cash
We can approve your application in 48 hours. After approval, we can fund your account in as little as five business days.
3. I Don’t Want a Lot of Paperwork
We ask for very little documentation from our merchants, in order to make the process smoother and easier. All we need is your two-page application, a copy of your business lease, a voided business check and your last four months of merchant statements.
4. I Want a Flexible Repayment Method
Your merchant cash advance is repaid only when your customers make credit card purchases.
5. I Want Continued Access to Business Cash
You may renew your funds every three to four months, as many times as you wish.
Dec/091
Getting Small Business Back in Business
Data from the Small Business Association shows that small businesses employ just over half of all U.S. workers and generate half of the nation’s private nonfarm Gross Domestic Product.
These statistics show that small businesses are not only an important part of the economy, but they play a vital role in the economic recovery. Getting small business owners back on their feet will open up jobs for the 15.4 million unemployed people in the United States and give consumers money to spend at other small businesses. Seeing the improvement in the small business sector, banks will no longer be afraid that small business owners won’t be able to repay them, and will eventually loosen lending standards.
There are various efforts that have put into place, or are in the developing stages, designed to revive small business owners and rebuild the economy.
International
Merchant Resources International provides merchant cash advances to small business owners throughout the United States, as well as in Canada. Merchant cash advance programs are geared toward small business owners who are having difficulties getting bank loans. Minimal requirements, fast funding speeds and flexible repayment methods make the merchant cash advance an easy, convenient and useful business funding method for business owners, internationally.
National
President Obama is continuing his efforts to build up small businesses. “Senior administration officials say Obama will be looking to push money left over from the Troubled Asset Relief Programs toward the small business community for hiring,” wrote Phillip Elliot for Business Week.
State-by-State
The Michigan Economic Development Corp. provides collateral to companies, to help them get loans. “[MEDC] is helping companies diversify, if they add workers,” wrote John Tozzi for Business Week. This gives businesses incentives to hire more.
Community
Various communities are backing their own “buy local” initiatives, in order to get dollars circulating within the community and to get money into small businesses.
Nov/090
Merchant Cash Advance for the Holidays
Over Thanksgiving weekend, which included Black Friday, 195 million shoppers set out to receive deals and bargains on toys, apparel, jewelry, electronics and household items. While the number of shoppers increased by 23 million, a 13% increase, the average amount spent per customer actually declined and the National Retail Federation still predicts a 1% decline in sales this holiday season.
If in fact this year’s holiday sales do decline, small business owners must be prepared to weather the storm. There are certain measures they can take in order keep their businesses above water into the New Year, for example, applying for a merchant cash advance.
Merchants may qualify for a starter advance, a standard advance or a premium advance. Through one of these programs, small business owners can get the funds needed to hold their businesses over until sales pick up. MRI can fund up to $500,000 and merchants can use their funds however they choose.
Apply online to get your merchant cash advance for the holiday season.
Nov/092
Merchant Cash Advance Programs
If you’re in need of funds for your business, MRI has a program just for you, providing you meet a few simple requirements.
Starter Program
The starter program allows merchants who don’t quite qualify for the standard program a chance to build up their credit with MRI and receive a small advance. Starter advance recipients can receive $1,000 to $7,000, with the opportunity to receive a larger amount with each renewal.
Merchants with low monthly credit card processing and/or less than six months of business ownership, may find the starter program very helpful.
Standard Program
Most merchants qualify for the standard merchant cash advance program, through which they can get up to $500,000 in unsecured business funds that can be used without restrictions.
To qualify for the standard program, a merchant must:
- Process at least $3,500 in monthly credit card sales
- Have owned his/her business for at least six months
- Have no unresolved bankruptcies
- Have at least one year remaining on the business lease
Premium Program
The premium program was designed as an incentive for merchants with the highest credit scores and strong monthly credit card sales. Premium merchant cash advance recipients will receive the lowest rates in the industry and loan terms of up to 12 months. To qualify for a premium merchant cash advance, merchants must:
- Have a credit score of 650 or higher
- Qualify for a $50,000 merchant cash advance
- Have no unresolved bankruptcies
- Have at least one year remaining on the business lease