Business Capital- Alternative Lending For 'cash' Businesses

Business Capital- Alternative Lending For 'cash' Businesses

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Businesses who have looked for business capital in the last few years have been forced walk a long and sometimes 'crooked' path to locating sources of working capital loans. Many commercial banks and non-bank SBA lenders that were falling all over each other to give loans to these businesses just a few years ago have found these sources are no longer available.

Into the this vacuum have stepped a variety of non-bank lenders and sales organizations offering merchant cash advances for those small businesses that need business capital but have been turned down to credit for a variety of reasons that may not have been in the case in the years recently past. Merchant cash advance lenders have the advantage of being able to handle a much wider array of credit situations than almost any bank or SBA backed lender would even entertain. They also can fund their "advances" in days or weeks, as opposed to months, thereby helping those in need quickly.

The downside to these "cash advances" are many however. To begin with, these advances are marked by extremely high interest rates, topping out in excess of 50% on a short 12 month term. Additionally, these advances are not true business loans, and do not have to abide by state usury laws governing maximum cost. Many times a cash advance company will also stipulate that a company do the majority of their transactions via credit cards and then switch credit card processors to one that is mandated by the cash advance company.

For businesses that operate more on a cash or "net 30" type of model, this did little to help {solve|alleviate] their need for working capital after the credit crisis. Many of these businesses such as manufacturers, have a good cash flow, but do have very little credit card sales for a variety of reasons. Luckily, the marketplace has heard the call, recognizing that many of these businesses still represent a good risk for a lender. This new cash loan also features rates that are usually 30-50% less than a traditional cash advance, with no upfront fees and quick funding times.

Before any business makes a decision about business capital, they should always consult with a professional first to understand exactly what they are getting their hard-earned businesses involved with. Taking the time for a discussion, rather than making rash applications online, is always the prudent business decision. If you need working capital, see the links below, and start the conversation.

About the Author:
Neal Coxworth is an entrepreneur and a 17 year veteran of the consumer credit industry with experience in originating, underwriting and processing mortgage, student and consumer credit loans.

IF YOUR BUSINESS NEEDS WORKING CAPITAL NOW, CLICK BELOW:

http://businessgetloan.com

http://businessworkingcapitalloans.com



Article Originally Published On: http://www.articlesnatch.com


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