Working Capital Posts

Unsecured Business Loan: Myth or Reality?

July 15, 2010
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You see it all the time online, ads just all over the advertising “quick business loans” unsecured for eye-popping amounts of money. Are these loans really what they seem? I personally was always a bit skeptical as to what the acutal meaning of “unsecured” was in the context of these types of business loans. The article below goes a long way toward deciphering exactly what these sorts of advertisements mean and what a business owner needs to know before they get to far along in doing their business loan research.
Unsecured Business Loan: Is There Really Such a Thing?

To many business owners looking for working capital, an unsecured business loan sounds like an enticing offer. Indeed, the Internet is littered with ads, sites and plain old come-on’s for these types of loans. However, it is important to understand these offers for exactly what they are.

First of all it is important to understand the common definition of “unsecured” in the context of a loan. A secured loan is typically one that has a lien or some type of legal encumbrance placed upon some type of hard assets possessed by the borrower. An example would be a car loan or a mortgage. The “security interest” for the lender is that if you do not pay, the lender will take your car or house. In this case, the lender has “legal recourse”, and can use the courts to either force repayment, or seize the secured assets ( car or house in our example) if the borrower cannot pay.

In both these examples, the borrower has the loan secured against personal assets and the loan is made based off of personal credit and income. An unsecured loan by definition, does not have a lien placed on assets possessed by the applicant or borrower. The loan is made purely on the strength of the borrowers credit history and their verifiable income.

In the context of business loans, many offers are advertised as “unsecured” purely because these types of loans or cash advances do not secure the loan against the PERSONAL assets of the business owner. Technically, then, this loan is unsecured. If the loan is truly unsecured against both the personal assets of the business owner, and the business itself, then the loan amount typically will be very low, generally under $7500 and usually much lower if the credit history has problems.

However, many merchant cash advance lenders will advertise unregulated cash advances as “unsecured”. In actuality, these types of advances, which have no limit on the upward rate being charged, usually do have a security interest against the assets of the business, not the business owner. They accomplish this by filing a UCC(uniform commercial code) lien against the business. This means if the business does not pay the loan and the business is sold or liquidated, the merchant cash advance lender has a right to the proceeds to satisfy the unpaid before the business owner does.

Such advances are usually made based on the future credit card receivables of the business and often come with strings attached, such as requiring the merchant to switch payment processors, buy equipment, and pay high upfront fees. The unregulated “cash advance” is really a sales tool to force further purchases or concessions by the owner in exchange for a high rate advance.

In conclusion, if you are business owner looking for an unsecured business loan and the amount you are requesting is over $5000 with less than perfect credit, chances are you will not find it easily, if at all. However, there is a much more cost effective option for these business owners who are seeking quick working capital up to $500,000 at rates that are 50% less than a merchant cash advance with no upfront fees and no requirement to switch processors. To find out more about this new, cost effective business loan, click here.

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LOOKING FOR A COST EFFECTIVE BUSSINESS WORKING CAPITAL LOAN WITH LESS THAN PERFECT CREDIT? CLICK BELOW TO GET PRE-APPROVED.

http://badcreditloansforbusiness.com

Online Business Loans: How to pick the right one?

July 14, 2010
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In doing a quick search on the internet, you may walk away a little confused as to what to do in terms of applying for a business loan, or what an online business loan really is? Every company under the sun is advertising payday loans, car title loans, quick cash advances all the way up to mezzanine financing and “hard money” loans. If you are a small or medium sized business who has been shut off from your traditional capital sources how do you  make sense of all the competing, and often contradictory claims? This article may help.
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Online Business Loan – Which Online Business Loan is the Best?
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By Neal Coxworth

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With advent of the credit crisis, many businesses have seen their sources of working capital dry up, necessitating the need to find an online business loan. In reviewing the seemingly bewildering array of choices the internet seems to offer, many business owners may walk away with “information overload”, not being able to separate reality from the various claims that are made online.

One key aspect to remember when searching for an online business loan is that a true business loan is not going to be “funded instantly” online. Despite what some of the headlines and ads may say, a true business loan will never be funded this way. What is confusing is that many personal cash advance companies, payday lenders and other non-business funding sources will also attempt to capture business loan traffic with a “shotgun” advertising approach, relying on the confusion in the marketplace to gain loan/cash advance volume

While these sources may provide capital to individuals in smaller amounts instantly based on a signature and the strength of personal credit, they are not business loans, but personal loans. Oftentimes they are considered, from a legal standpoint, to be “cash advances” and therefore are relatively unregulated when it comes to maximum rates and fees that are charged.

What most business lenders will do online is allow a applicant to fill out a “pre-application” online, and then will be contacted soon thereafter to assess whether they are eligible for the loan. At this point, the applicant usually will have to forward supporting documents before they get a “hard pre-approval” that will give them the amount, rate and terms they will qualify for. This allows true business lenders to accurately assess and application and give the best rates.

Luckily, there are some better options out there for those business retailers who are seeking quick funding but have been unable to get approved at a bank or the Small Business Administration. The Credit Card Receivable loan is a quick, low documentation, no upfront fee loan that has interest rates which are 50% lower than merchant cash advance companies and have no other requirements to purchase equipment or switch credit card processors. Usually, loans of this type can fund with 7-10 days, and a pre-approval within 48 hours is the norm. Loan amounts up to $500,000 are available.

If you have been searching for a true, regulated online business loan that is cost effective and can work will a variety of business credit profiles, click here. Always remember to read the websites thoroughly to make sure you are getting a true loan, and not a cash advance no matter where you apply. A true, regulated business loan will always be more cost-effective over time, truly helping a business rather than causing further long-term financial distress

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.

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GET PRE-APPROVED NOW FOR A TRUE, COST EFFECTIVE ONLINE BUSINESS LOAN FOR ALL CREDIT SITUATIONS.

http://badcreditloansforbusiness.com

Business Working Capital: Do you know where to find it?

July 12, 2010
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Short term working capital has become an elusive financing option in the last 30 months. Businesses everywhere are seeing there lines cut, bank applications turned down, and some are even shutting there doors after long term working capital arrangements dried up seemingly overnight. Many of the sources for this type of capital have disappeared in the interim, leaving business owners scrambling to find a way to plug the financial gap. The article below should give you at least a few options that are worth considering.
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Business Working Capital Loans

By Neal Coxworth

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While the government strains how to figure out a way to help small businesses obtain working capital loans, the reality for many businesses is that obtaining working capital in today’s economic environment is extremely difficult. This has left many retail businesses with getting a high rate, merchant cash advance as a means to expand, or stay afloat.

Such advances, usually marketed by credit card processing companies, are not true business loans. Because of this, laws governing the maximum amount of interest that can be charged do not apply. It is not uncommon to see factor, or interest rates on a Merchant Cash advance as high as 50% for a short term “advance”, along with a requirement to switch credit card processors or buy equipment. Many times, such advances also carry high upfront fees and an uncertainty that the factor, or interest rate, can change at any time during the repayment period at the processors sole discretion.

However, there is now a new way for retail merchants to obtain the business working capital loans that they need to expand, or just survive their day to day operations. This new way of obtaining capital is characterized by a few key points that make this type of business working capital loan much more cost effective for almost all merchants. Some of these points are:

  • Approvals of loans that are 50-80% lower factor, or interest rates, than a merchant cash advance
  • Owner credit scores as low as 550.
  • No upfront fees, no requirement to switch processors, no equipment to buy.
  • Loan amounts as high as $500,000
  • a true business loan that builds positive credit history, unlike cash advances.
  • Fundings in 7 to 10 days, preapprovals in 48 hours.

This new type of business working capital loan is available across the entire US, and is tailored specifically for the retail merchant to provide relief from the crushing fiscal burden of cash advances. To find out more see below.

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. He publishes an informational blog for consumers to provide insight and analysis to all major loan types as well other topics such as credit history, that most consumers will face.

TO FIND OUT MORE ON HOW TO OBTAIN LOWER COST BUSINESS WORKING CAPITAL LOANS CLICK BELOW:

http://www.neal.kvmgt.com/business_loans.html

Restaurant Loans: Where to go if your credit has been cut.

July 11, 2010
By
All retailers have really taken it on the chin in the economy of the last two years. To say that business has decreased would be a real understatement. However, perhaps no business has suffered more than restaurants. A difficult prospect in the best of times, banks and credit lines for these specific types of business have been severely slashed. Take a look below to find out some of the options that are still out there, especially if you have been subject to restrictions by your traditional financing source.
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Restaurant Loans – Affordable Funds Delivered Quickly

By Neal Coxworth

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In recent years, businesses needing restaurant loans have been treated as an almost separate, and some may say unequal, category of financing for business loans. Many lenders that understood the special needs of restaurant owners are no longer lending, and other lenders have placed them on a so-called “black list” separate from other small and medium sized businesses because they are considered too risky.

This has left restaurant owners in a real predicament as they fight to regain much of the working capital that they lost in the economic downturn. Even healthy establishments have seen their lines cut due the banking collapse, and this has forced restaurant owners to seek out other sources of financing such as secured equipment loans, commercial mortgages, etc.

However, these types of loans are different and not really catering to the needs of restaurant owners because of the fact that restaurants need a steady infusion of working capital, even when business is slow, to keep deliveries flowing through their back door. Without it, the business will be forced to close, even if traffic is healthy. Because mortgages and secured business loans take a lot of time to process, underwrite, and decision, they have not been able to fill the financing gap that currently exists.

This has left business owners in the unsavory position of having to accept cash advances from their credit card processing company. These high rate, unregulated advances are quick and feature low documentation. However, they often comes with many strings attached such as the requirement to switch processors, buy equipment and pay large upfront fees. Added to this is the fact that the interest rates on these advances can often exceed 50% and may change at any time during the repayment period

Luckily, a better way has entered the market in the form of a new, regulated business loan called credit card receivable financing, that is as quick and easy as a cash advance without all the disturbing requirements such as buying equipment and switching processors. On top of this, the rates are normally 50-80% lower than a merchant cash advance with no upfront fees.

It’s time the restaurant business owners had a real, cost effective option when it comes to obtaining restaurant loans for their establishments. Today’s economy demands creative solutions to the capital intensive needs of business, and this new option that is on the market that fills a gap that major banks and the SBA have left.

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.

THE NEW, LOW DOC, COST EFFECTIVE SOLUTION FOR QUICK RESTAURANT LOANS THAT IS 50-80% MORE COST EFFECTIVE THAN A MERCHANT CASH ADVANCE.

http://businessgetloan.com

Financing A Business in a tough economy

July 10, 2010
By
In this economy, business finance is quite a difficult minefield to navigate. There are a lot of companies out there claiming to do a lot of things that traditional bank financing arrangements cannot pull off. Them main point of the article below is to try and cut through some of the clutter and look at some of the top 3 options that are out there if you have not gotten a loan at a bank. I thought you might like the article below as a way to understand your options for working capital
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Financing For Business – 3 Things Small Businesses Should Know

By Neal Coxworth

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Entrepreneurs that are searching for capital when financing for business have had an increasingly difficult time navigating the stormy waters of the financial world in the last 3 years. Many lenders have reduced, restricted or cut off many lines of credit in the wake of the worst financial crisis in 70 years.

In the meantime, there are a three key things that businesses need to remember when searching for working capital to continue to grow their operations:

1.) Consider the SBA, or an SBA backed loan first. With a mandate from the government to lend to small business, they are the first best choice for any type of business loan. The advantages are the low rates that can be offered. The disadvantages are that comparatively few of these loans are actually being approved and funded and often require large amounts of documentation and prolonged funding times. If credit is less than perfect, as many businesses are finding in these tough times, chances are this will not be an option.

2.) Those businesses that accept credit cards and have been turned down by a bank can always try an unregulated, high rate and high fee merchant “cash advance” usually offered by their credit card payment processor. These are not technically business loans like an SBA loan, but are considered “advances” based on future credit card receipts. As such, they are not regulated as loans and have no restriction on the maximum interest rate that can be charged. Often rates on this type of loan are in excess of 50% for a short term loan along with a requirement to purchase new equipment and/or switch credit card processors. Typically, such advances will also place a lien on the business, meaning that if the business was liquidated or sold prior to the advance being paid off, the cash advance company would have a right to the proceeds before the owner. Often, interest rates will change upward during the repayment period.

3.) A low cost alternative to a merchant cash advance loan is known as credit card receivable financing. This is a true business loan that will have rates that are 50-80% less costly than a merchant cash advance with no requirement to switch credit card processors or buy new equipment. There are also no upfront fees with this type of loan. These types of loans are also open to businesses with owner credit scores down to 550. Typical preapproval is 2 days, with most businesses receiving funds in 7 business days.

Financing for business in this economy is an ongoing challenge that just got a little easier. With a new lower cost alternative to a merchant cash advance, many business owners are finding that weathering the storm is not nearly as difficult as they may have thought.

APPLY NOW FOR LOWER COST BUSINESS FINANCING

Bad Credit Small Business Loans: Which way do you turn?

July 7, 2010
By
It has been a long rough road out there for retailers as the try to cope with the twin effects of reduced customer traffic, dwindling or non-existent bank credit, and the the continuing negative effects that it has had on business and personal credit. To make matters worse, the last resort for many small business owners, their home equity, has also dried up due to falling real estate prices and the overall collapse of the real estate market. I picked up this article just to let you know that even in these tough times, there are options out there.
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How to Get Bad Credit Small Business Loans
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Many retailers have been battered by the economic downturn of the last two years. For many retail businesses, this has meant delaying vendor bills, tapping into savings or other tactics to try and make it until business conditions improved. While the best option for any small business is always an SBA type loan, the reality is that most businesses will not get approved for this type of loan in today’s restricted credit environment.

For these retail businesses, their main option for bad credit small business loans was to get a merchant cash advance from their credit card payments processor. These cash advances are not true loans, but rather, cash advances based on future credit card receivables. Such advances are almost always characterized by factor (interest) rates as high 50%, high upfront fees, high hold-back (payment) rates, and the requirement to switch credit card processors and/or buy equipment.

Over time, these merchant cash advance loans can become a crushing burden to businesses that use them, as they watch a large percentage of their daily sales volume go to paying back the advance and associated interest.

Now there is a much more cost effective way for businesses to receive bad credit small business loans. This new type of business loan, called credit card receivable financing, is characterized by:

  • Rates that are 50-80% lower than a Merchant Cash advance
  • No Upfront Fees.
  • No requirement to switch credit card processors
  • No need to buy any equipment whatsoever.
  • A true business loan that builds positive credit for the future, unlike a cash advance
  • Owner credit scores as low as 550. Max loan $500,000
  • Approvals in 48 hours, fundings in 7 to 10 days. Available in all 50 states.

In today’s economy, small businesses need a way to get the capital they need without being taken unfair advantage of by cash advance companies looking to reap unfair profits. To find out more about one of the most cost effective way for merchants to get a bad credit small business loan, click here

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. He publishes an informational blog for consumers to provide insight and analysis to all major loan types as well other topics such as credit history, that most consumers will face.

TO FIND OUT HOW TO OBTAIN COST EFFECTIVE BAD CREDIT SMALL BUSINESS LOANS, CLICK BELOW
http://www.neal.kvmgt.com/business_loans.html

http://ezinearticles.com/?How-to-Get-Bad-Credit-Small-Business-Loans&id=4549925

Loan For Business: Where to turn in tough times

July 7, 2010
By
The last three years have been an enormous wake-up call for everyone in America. From consumers, to business, to the government itself, the world has seen much of its economic stability vanish due to bad decisions, inadequate regulation and outright greed. In the so-called “credit crunch” and mass layoffs that ensued, the average retail businessperson faced incredibly difficult set of circumstances ranging from laying off employees, drastically reduced foot traffic and the removal and/or restriction of credit lines.
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How to Get a Loan For Business
Many retailers are faced with the daunting task of trying to get a loan for business. In today’s constrained economic environment, obtaining this type of loan is difficult from Banks and the SBA. While these institutions have the best rates, their ability to lend is severely constrained.

As a consequence of this, many hard hit retailers have been forced to go to find other alternatives to obtain capital for ongoing operations, expansion, or even just surviving as a viable entity. Many retailers who accept credit cards have been forced to consider alternative “cash advances” from their credit card processing providers.

These “cash advances” are not true loans and are not regulated by state and federal usury laws that govern the maximum amount of interest that can be charged. Because of this, many merchant cash advances can have factor, or interest rates in excess of 50% coupled with high upfront fees and the requirement by the company to switch credit card processors and/or buy new equipment.

Often touted as “unsecured” and not being approved based based on the owners credit, these advances nonetheless are often secured with a UCC lien on the owners business. This means that the payment processor/cash advance company has a right to proceeds if the business is ever sold or liquidated.

However, there is now a new way for retailers to get a loan for business operations without paying the extremely costly “lender of last resort” merchant cash advance rates and fees. This new option is called credit card receivable financing and is characterized by:

  • Interest rates (factor rates) that are 50-80% cheaper than a merchant cash advance
  • No requirement to switch processors
  • No requirement to purchase any new equipment
  • No upfront fees
  • Owner credit scores as low as 550
  • A true business loan that allows a business to build a positive credit rating for future loans.
  • Low Documentation, approvals in 48 hours.
  • Fundings in 7-10 days.

Businesses need a better way to get a loan for business in this difficult marketplace. To find out more about this new type of lower cost option for business retailers, click here.

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. He publishes an informational blog for consumers to provide insight and analysis to all major loan types as well other topics such as credit history, that most consumers will face.

TO FIND OUT MORE ON HOW TO GET A LOWER COST LOAN FOR BUSINESS, CLICK BELOW:

http://www.neal.kvmgt.com/index.html

http://ezinearticles.com/?How-to-Get-a-Loan-For-Business&id=4551296