By Ben Needles
When it comes to merchant loans, an inverse relationship often exists between merchant size and credit risk. The smaller the merchant, the larger the perceived risk; the larger the merchant, the lower the risk.
Credit Cash provides working capital and funds a maximum of a companys average monthly credit card sales amount.
So, it makes sense – at least on paper – to get in the business of loaning money to bigger merchants. There is less risk, and the funding amounts are larger. Therefore, the revenue from the loan will be considerable. However, there is a reason few companies are willing to lend significant sums to merchants: It takes money – and lots of it. Most merchant advance companies dont have such resources, so they focus on smaller merchants. It is more work, but still profitable.
Most likely, if a company has the means to offer a $3 million loan to a credit-worthy large merchant, it will.
Credit Cash extends credit to larger merchants only and has the resources to assist clients whose monthly credit card volume is at least $200,000. It provides working capital and funds a maximum of a companys average monthly credit card sales amount, offering amounts from $150,000 to $3 million.This is of interest to ISOs and merchant level salespeople (MLSs) because agents who work with Credit Cash can typically earn better commissions for less legwork. Credit Cash is comfortable providing sizeable loans to the large-business segment. In fact, through its affiliate firm Entrepreneur Growth Capital it has been lending to this niche since 1937.
Credit Cash managers have over a combined 100 years of experience in this business, and their clients represent more than $750 million in annual sales.
One of the advantages agents enjoy with Credit Cash is the ability to place deals that their existing source can not fund. Because our target markets are larger merchants, we do not compete with other cash advance companies, said Dean Landis, Founder and CEO of Credit Cash. Processors, ISOs and MLSs can maintain their existing cash advance relationships and utilize Credit Cash for their larger merchants. We have also found that larger merchants are unwilling to pay the typical cash advance rates; so our product is a viable resource for ISOs.
Credit Cash adheres to true loan processes. It also reviews account receivables, inventory, equipment and real estate.
Another advantage for agents and their clients is merchants and other clients do not need to change processors. Landis noted that many of Credit Cashs clients borrow their funds in addition to a bank loan, while some use the company instead of going through a bank. Clients may want to grow and know they shouldnt or cant go back to the banker, he said. We are a good option for them. We fill in. We subordinate to the bank, and we dont interfere with that relationship.
Seasonal businesses, such as restaurants and stores in vacation destinations, are particularly well-suited to borrow funds from Credit Cash. Often it can be difficult for these types of businesses to secure additional funding, because they have low cash flow during off season months. In these cases, when a bank loan or additional funding from investors is either not ideal or impossible, Credit Cash can be a viable solution that pleases owners, as well as investors and creditors.
Credit Cash is also a solution for businesses that have considered mortgage refinancing, but due to the recent tightening of the mortgage market, either cant or dont wish to pursue that avenue. Also, mortgage refinancing takes time that many businesses dont have. Credit Cash typically supplies funds within 10 days of receiving all the appropriate paperwork.
In terms of funding options, larger merchants typically are more experienced than their smaller competitors. Others focus on small merchants and charge high rates, Landis said. As you get to the larger merchants they say, We are bigger, more sophisticated. We know enough not to pay those kinds of rates. This is a new sales product, to a new group.
Credit Cash rates are as low as 1% per month, so a six-month loan could be as low as 6%, 12 months as low as 12% and so forth. Terms are from six to 24 months. Repayment is typically 3% to 10% of credit card sales. Merchants can either pay a percentage of credit card sales or a fixed daily payment.
Credit Cash uses a variety of channels to generate sales, including referrals, an inside sales force, brokers, processors, ISOs and MLSs. This is another vehicle and source of income, Landis said. Agents are always looking for valued added products for added income. ISOs can customize the Credit Cash application with their company name, so the process appears seamless to the client.
Credit Cash pays its agents a 10% commission on new loans and 5% on renewals. For example, if an agent brought in a merchant who borrowed $1 million for a 10-month loan, Credit Cash would earn $100,000, and the agent would earn $10,000.
There are many ways to measure customer service. You can study surveys, ask people for recommendations or look at an existing client roster. In the case of Credit Cash, 100% of its credit card cash advance customers have renewed their loans. After three generations of being in the lending business, we understand customer service, Landis said.
This renewal rate is not only good for Credit Cash, but also for the agents who brought in those accounts, as they earn 5% commission on each renewal. Credit Cash makes it easy for clients to renew loan applications. Once theyve paid 50% of the loan, they become eligible to renew, Landis said. Our average commission is $5,000. Not only is it important for MLSs to hold on to valuable accounts, it is also essential for ISOs to reduce attrition within their sales force.
If an office has a stellar sales agent, it doesnt want him or her to be enticed away by a competing ISO. By offering a unique and lucrative product, Credit Cash strives to help ISOs attract and retain valuable agents.
Credit Cash provides financing for much larger businesses than other merchant finance companies. They target companies whose credit card revenue exceeds $600,000 per year. Their loans start at $50,000 and go up to $3 million. Many other companies reach their top limit where they begin.
This article has been distributed by SalemGlobal Internet Interactive Public Relations. Based in New York City, SalemGlobal optimizes websites to increase traffic from search engines for the medical, healthcare, legal, automotive and real estate industries, provides lead generation and improves conversion of site visitors to buyers.
Other services include general website marketing, search engine optimization, ecommerce solutions, content management systems, website hosting, web design and maintenance. For further information, please contact Eytan Wiener at 212-993-5828.
About the Author (text)
Dean Landis, President and CEO of Credit Cash, http://www.credit-cash.com, has been involved in every aspect of asset based lending (business development, operations, account and portfolio management).
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Get a Microloan Through a Business Cash Advance
By David Castro
Ever heard someone say “Good things come in small packages”? Well, the saying is applicable to more than just holiday gifts, as it is beginning to ring true for many small business owners who are taking advantage of microloans. A microloan is a small loan, typically described as being less than $35,000.
The Small Business Administration backs loans of up to $1.5 million to $2 million. But in 2007 the average SBA loan amount was about $200,000. With the tightening lending practices of banks, and the increasing difficulty of getting larger loans, microloans are becoming a widely utilized method of business financing. According to Business Week, many of the people who are getting these loans have good credit scores, and under normal circumstances, would have qualified for a bank business loan, but tightening lending practices, have forced them to turn to look for microloans from alternative sources.
Just because a business owner is unable to get the large amount of money he/she needs as a lump sum from one source, does not mean that he/she should give up the search. Choosing to get a smaller amount of money when getting a larger amount is nearly impossible can be an excellent business decision. Microloans can be obtained from friends and family, through peer-to-peer lending, and of course, through business cash advances. With microloans, you can get various small amounts of money from multiple sources, or you can finance your business endeavor in installments. The latter option is especially plausible with a business cash advance, as borrowers are given the option to renew their accounts once 60 percent of their previous advances have been repaid.
Microloans are often easier to obtain than larger loans because most lenders are more comfortable lending smaller amounts. Lending small amounts is less risky than lending larger amounts because the probability that the loan will be paid off in full is greater.
With a business cash advance, your loan is repaid via your business’s credit card sales. Business cash advance lenders want to ensure that your loan repayments will not hurt your business. That is why lenders will typically provide a business cash advance of up to 30 percent more than your business’s monthly credit card sales. This way, a small percentage of your business’s daily credit card sales can be deducted and put towards your repayment, allowing your advance to be repaid in a reasonable amount of time.
Should you choose to look into getting a business cash advance, you will find that lenders do all of the math for you and provide you with all of the numbers before-hand, making business financing through microloans a great possibility for your business.
David Castro often writes articles about Business Cash Advances for Merchant Resources International – To Learn more Visit Us at http://www.businesscashadvanceloan.com
I Just Want a Second Chance Payday Loan
By bryanrichard
Nobody’s perfect. Our failures and false starts are the key factor for unprecedented success. Nevertheless, you can clearly benefit from your mistakes, to avoid repeating them. Don’t be scared to experiment as you will always be able to start from the very beginning if you want to improve things.
More and more loan companies believe in giving people deserve another chance to lead full lives. An opportunity to confirm to the lenders, that there is no such thing as lack of integrity, credibility, ethics, and competence and you are trustworthy. This is the second chance you’ll ever get for recovery. Payday loans are supposed to help you with blemished credit histories.
A payday loan is meant to be an unsecure form of loan, backed against a future paycheck. The amount of the loan is from $100 and up to as large as $1500 maximum. Make sure you bear in mind that a payday advance is basically meant for short periods. Therefore, loan amount plus the interest fees should be taken out of your pay by the lender once your future paycheck comes in.
There are many many people with the same sad story who experience a finanacial hardship without a rainy day fund to tap for the unbudgeted expense and start looking for a short-term loan. It is nearly impossible to request a loan for a long time with terrible credit records. Payday loan will best assist with your real financial needs.
A payday cash loan is a powerful financial instrument that is available against your upcoming salary. You should always remember that the loan company is offering you a chance to fix your credit rating. Payday cash advances allow you not to fax over a lot of things like proof of your citizenship, proof of a US bank account, and a copy of your paystub to the lender for identification purposes. Most loan companies do not require a credit check to evaluate your ability to pay off the loan, therefore it won’t in fact hurt your credit scores if you visit several loan companies all at once. In order to ensure that loan companies will not ask about a credit check, you’d better begin your own research.
There are dozens of payday loan providers online! It is so very easy to secure a short-term loan all from the comfort of your own living room. In a matter of a few minutes, you will already be submitting your online application. You will need the following at hand: SSN, DL and employment background before you send out application forms.
Although you can obtain a payday loan with no collateral, you should be able to pay the loan back on time. The borrower is allowed to pay the loan back from the next paycheck. It is significan’t to borrow carefully, and avoid burdening yourself with unnecessary debt.
You should get to know the repayment options when you complete the online application process. I advise you choosing the least burdensome option, though make sure you compare all of them.
Now that the most burdensome part of the loan game is nearly over, it’s time to go forward with all the skills you have developed to build a completely new financial future of you and your family.
Do something useful and ask for an instant cash advance now! Go to http://nocreditcheck-paydayloan.info and review high-quality articles with factual content for anyone in deep difficulty.
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