Loan repaid through credit card processing

paulbrownpaulbrown Posts: 1subscriber
edited November 2007 in Growth Funding
I`m looking for some funding to create a cash flow buffer. I own a service business and have essentially no assets of any value and have only been in business for a year, so the banks won`t talk to me. My business grossed just shy of $1M last year, and had a pretty decent net, but cash flow continues to be a problem, so I`m trying to get a buffer in my bank.
I`ve heard of companies that provide loans that you repay over time with a percentage of any credit card payments you take from customers/clients.
Anyone know about or used any of these firms? Are they reputable? And do they do loans as high as $150-200K. Any info anyone has would be a great help.
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Comments

  • lug067lug067 Posts: 0subscriber
    hi paul,    I have no try myself but I hear that they do real good business. I got the web address for one of them and you could get all the information that you from they website at www.business-cash-advance.com.I hope this could help you.
  • savannahsavannah Posts: 0subscriber
    I too am interetsed in these factoring companies - any feedback?
  • BusinessServicesBusinessServices Posts: 0subscriber

    I`m looking for some funding to create a cash flow buffer. I own a service business and have essentially no assets of any value and have only been in business for a year, so the banks won`t talk to me. My business grossed just shy of $1M last year, and had a pretty decent net, but cash flow continues to be a problem, so I`m trying to get a buffer in my bank.
    I`ve heard of companies that provide loans that you repay over time with a percentage of any credit card payments you take from customers/clients.
    Anyone know about or used any of these firms? Are they reputable? And do they do loans as high as $150-200K. Any info anyone has would be a great help.

    A few of my customers have tried and highly recommend www.absolutemerchantsolutions.com</A> for cash  advances for credit card sales. Please keep us posted on who you choose and what the outcome is.
  • topcapitalfundingtopcapitalfunding Posts: 0subscriber
    Maybe I can be of assistance...I work for Top Capital Funding and we help businesses like yours obtain working capital.  We base our loans on monthly merchant account processing volume.  Depending on how your application looks, we`ll loan up to $300k without collateral.  If you`re interested, please reply to this message and I`ll send you an application.  Also, you can check out our website at www.topcapitalfunding.com</A>
  • advawebadvaweb Posts: 0subscriber
    I have looked into several of these companies, but I found their rates to be over the top.  To borrow 100K over 9 months, one company told me I would have to pay back 130K!  30K over 9 months is too high for us to pay.
    So we are investigating other sources of funds, specifically an unsecured line of credit, so if anyone knows a good source for those, I would love a referral. So far all I can find are brokers that want to charge me a 15K brokers fee for getting me a 100K loan.
    Best of luck!
    Advaweb
  • realnycguyrealnycguy Posts: 0subscriber
    I can help you if you are processing credit cards as part of your business plan.
    Drop me a line and tell me more about your business, type of monies you need and let`s see what we can do for you.
     
    Brian
    [email protected]</A>
  • advawebadvaweb Posts: 0subscriber
    Salhdi,
    I would like to learn more about thesnaploan.com.  I visited their website. Did you meet their credit score requirement? The reason I ask is that one of our three scores is below 675, so I didn`t think they could help us.
    I`d like to hear more about what they were able to do for you.
    Thanks!
    Advaweb
  • dms8555dms8555 Posts: 0subscriber
    I too would be interested in restructuring our debt. We have an SBA loan of about 180K and have been in business for about 7 months so no bank will talk to us... we also owe about another 30K to outside investors not including the amount myself and my partner have put in... email me with suggestions..
    thanks
  • FinanceFindersFinanceFinders Posts: 0subscriber
    Hello Adaweb
      
        I believe my company can help you with your  business lines of credit needs. All you need to qualify for a line of credit is a credit score of 680 and a business. No minimum time in business required.Please give us a call at  877 700-7151. Check out our website at www.myfinancefinders.com
  • mattsindmattsind Posts: 0subscriber
    Feel free to give me a call at your convenience to discuss your factoring options.  There`s no charge and no obligations!

    Hi,
    What exactly is factoring, in this case?
  • sagetroutsagetrout Posts: 1subscriber
    Paul,
     
    What you are asking about is called a Merchant Advance.  I offer Merchant Advances at the best possible rates. 
     
    It`s called an advance rather than a loan because the repayment is a percentage of your Mastercard and VISA sales each month.   The percentage varies depending on your credit rating, type of business, and other factors.   The interest charge is fixed when the advance is funded and the repayment comes automatically from your merchant account until repaid in full.
     
    There are three criteria to qualify:
    1)  You must have at least $2,500 a month in Mastercard and VISA sales.
    2)  You must have been in business for at least one year and had merchant account for the past six months.  For advances over $75,000 you need to be in business over 2 years.
    3)  You must have at least one year remaining on the lease for your business location.
     
    We can fund a Merchant Advance within 5 to 7 days after your application is submitted.  The amount of the advance is based entirely on your average monthly MC/VISA sales and the maximum advance is 125% of the average MC/VISA sales. 
     
    You ask if such companies are reputable.   This is a regulated industry and the financings have to conform with applicable Federal and state laws.
     
    If you`re interested in a Merchant Advance or looking at other financing options you may have, pelase contact me.
  • Ralph4Ralph4 Posts: 3subscriber

    Salhdi,I would like to learn more about thesnaploan.com.  I visited their website. Did you meet their credit score requirement? The reason I ask is that one of our three scores is below 675, so I didn`t think they could help us.I`d like to hear more about what they were able to do for you.Thanks!Advaweb

    Hi
    About two weeks ago, I submitted a loan to [url=http://www.thesnaploan.com.&#160;]www.thesnaploan.com. [/url] According to the information I received, if you have a credit score lower than 675, you only need to ensure that you do not have an discrepancies or bankruptcies on your credit report, for the past seven years for the latter.
    According to thesnaploan.com, they use a different program for businesses in this situation.  However, they do consider them.
    I`ll let you know if I`m approved.  They claim to have a fast response time.  I am at about two weeks, and a bit anxious to see the outcome, I might add.
  • advawebadvaweb Posts: 0subscriber
    Thanks for the info Salhdi!
     
  • realnycguyrealnycguy Posts: 0subscriber
    Actually, there are dozens of cash advance companies out there, and they all have different criteria for funding.  Some of the more established companies can mold a plan more specific to the business at hand.  While 1 year in business is a generally accepted practice, it is not the rule.  You can usually go as high as $50,000 without requests for tax returns as well.  Meaning, you should do your homework on the different companies out there.
    I work for 2nd SOURCE FUNDING, and we work with 7 different Merchant Banks.  To anyone who doubts the viability and size of the industry, we are currently funding between $10 and $15 million a month to merchants in all 50 states.  We usually ask for the last couple months of bank statements and merchant processing statements, so we can assess the business as a whole and how your income is broken down.  In some cases, we will forward you to one of our banks for a more traditional loan vehicle (though 650+ FICO scores and P&L`s are required).
    Realistically, you can expect to pay  between 25%-40% on the money.  Refinancing options are available to merchants who pay on schedule.
    In summary, this business is evolving and you should apply to more than one company to see who will offer the best terms.  Also be cognizant of the fact that in most (but not all) cases, you will be required to switch your credit card processing company.  Make sure your rates are not hidden and the fees inflated.
    If you would like to learn more, feel free to contact me
    Brian A. Baron
    Executive Funding Specialist
    877-700-7947 # 1912
    877-699-9017 fax
  • dms8555dms8555 Posts: 0subscriber
    our business is called whats4dinner
    our website is www.whats4dinnerinc.com
    and we do process credit cards....
    about 7K/month.
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