Why The Credit Crunch Won’t Go Away- in WSJ 06/21/10

http://online.wsj.com/article/SB10001424052748704852004575257970246239874.html?mod=WSJ_Technology_RIGHTBottomSBHeadLines

Use Alternative Financing- We are helping Businesses thrive in this challenging  economy everyday… learn more:

www.FirstFederalAdvance.com  or www.ContractorAdvance.com

Business Funding’s #1 Choice For 2010- FFA

When the “need of the day” is funding and banks are reluctant to lend, businesses still remain in the need of money for operating capital. The alternative financing option of a merchant cash advance is a growth industry for all business finance. A cash advance very quickly brings money where it is needed with a quick approval process. The cash advance is repaid in many different ways, for ex. from a portion of future credit card receivables and amounts to the base amount advanced plus a fee that varies according to the terms of the agreement.

Merchant cash advances are increasingly being sought as a source of  finance and small business needs. A merchant cash advance can be a cash advance against future credit card receivables. In effect, a provider pays the business a fixed amount of cash, in exchange for a fixed percentage of the future credit card transactions paid by customers until the terms of the financing are fulfilled. The advanced amount gets paid as a specified percentage of the daily credit card sales, which is deducted to apply towards the repayment.

This rate of repayment is calculated by analysis of the record of performance of the business.  No fixed monthly payments, late fees and hidden charges are involved. The percentage of future credit card transactions tracked for repayment flows with the rhythm of the earning cycle.

In a  financing plan a small amount of future credit card sales will be taken in exchange for the funding amount. The approved customer in effect receives an advance on their future credit card sales. There is no fixed payment requirement as the plan permits repayment to be a percentage of sales if you have a merchant account and credit cards as methods of payment, you can be eligible to receive funding very quickly.

A business advance provides small business owners with working capital they need quickly. For the best deals your credit card statement reports will be used to determine your paying capacity.

Statistics have revealed that a high percentage of businesses that apply for bank loans, as much as over 70 percent, do not get their loans approved. This can be because they have not been in business long enough, may not have enough collateral, or may have credit issues. On the other hand, business owners with this profile can still qualify for a business cash advance. Poor personal credit and prior bankruptcies are not a problem when seeking this avenue. The cash advance can be a very useful tool in the financing arsenal, if used properly. It has unique benefits that have led more businesses to seek this option in the current financing climate.

This financing method is in more demand today by businesses when other financial resources have either reduced or dried up. Banks have reduced their lending or even let go of some types of customers they had previously supplied. Thus even as the essential need for capital has not diminished, its supply has. Application process for a cash advance is quick and demands less documentary evidence. The application process has no closing charges. There is neither the requirement for collateral or a personal guarantee. Tax return forms, financial statement and asset documentation is not demanded. Rather than personal credit scores that are scrutinized, it is business performance that matters for application assessment purposes.

To use this useful tool responsibly means you will keep this option in your financing plans. To do this the business should be certain it can afford the terms. Compare the programs offered by vendors and understand your carrying costs, the time to repay the monies back and any risk factors you could have. The contract should be scrutinized to ensure the payback percentage does not fluctuate. Check out customers, past and present, if you wish before committing yourself. The right financing firm will encourage you to do what is needed to add to your comfort level as a user. After all, these firms will want to see their businesses grow with satisfied customers. The rise of the merchant cash advance industry is revealed by its growth in ten years.

www.FirstFederalAdvance.com

Lending Stays Tight at The Banks

The credit crunch isn’t over for small businesses.

Most U.S. banks kept credit tight in the first three months of the year, and some tightened lending terms further.

Some categories showed improvement after years of lending cutbacks. A third of banks tightened terms and conditions on new credit-card accounts for small businesses. More than 40% of banks said they raised minimum required credit scores.

Interest rates over the bank’s cost of funds—on outstanding balances, and 15% reported charging higher annual fees.  Loan officers said their current level of standards and terms is tighter.

Many small business customers are cutting back because of the weak economy.  Merchant cash advance, contractor advance and spot factoring have become more resourceful in today’s times. First Federal Advance is the first place to go for your funding needs. 

www.FirstFederalAdvance.com

Lending for Business Owners -Still Need Alternative Financing

Business owners used real estate to support financing endeavors in a variety of ways, the subprime crisis hit Main Street particularly hard as it rippled through the credit markets. Before the real-estate bubble burst, home and business properties were a reliable source of collateral for many businesses.

And even those that were ineligible for a traditional bank loan could often draw capital from home values by writing loans against home equity. Unlike traditional loans, home equity loans and lines of credit are determined by the appraised value of the home, minus the mortgage, and are not issued on the basis of credit history or credit scores.

Less than 10%, of those who historically qualified to use homes to gain capital could qualify for a similar loan today .

Cash flow is the number-one reason for getting declined —the combined net worth of the business and the owner—has been reduced, so collateral becomes more important in order to make sure that it’s in line with the loan.

8% of business owners used their personal homes and 11% used their commercial property as collateral for their business in 2009.  Merchant cash advance, contractor advance and spot factoring have become popular in today’s credit crunch.  Businesses are finding this resourceful for working capital. 

First Federal Advance has many different funding options   call  or visit us on-line at  www.FirstFederalAdvance.com

Merchant’s Don’t Have To Change Processors With First Federal Advance

http://www.youtube.com/watch?v=hpxyjz1x-N8   

We are unlike the rest…  www.FirstFederalAdvance.com

FAST BUSINESS FUNDING FOR WORKING CAPITAL-HAVE A BACK-UP PLAN?

 Business funding and having a back-up plan,is a must today.  The value  should be familiar to most small business owners,  however it seems that the concept of alternative planning is overlooked with respect to  loans and working capital strategies. Always have  a back-up plan!    The importance of a plan is beneficial to many aspects of running your business successfully. Back-up planning seems to be under-utilized when business owners are seeking new working capital via business financing strategies.  If the bank doesn’t renew your line of credit,which happens a lot,   the borrower will need to pay off the entire loan or refinance within a limited period of time. The best solution for avoiding this possibility is to review current business funding options and explore “Plan B” options. Many of local banks throughout the United States have recently decided to pull the plug on future business financing. When they do so, little advance notice is provided, in most instances. If a business has commercial loans or commercial mortgages with a regional or local lender, a plan should be developed for the contingency that alternative business loan arrangements could be needed in the near future.  To prepare for this increasingly common possibility, business owners should engage in thorough discussions with a working capital advance advisor before proceeding. The presence of a ”back-up” plan mentality is likely to contribute to many aspects of running a successful small business.

www.FirstFederalAdvance.com

www.ContractorAdvance.com

Call 888 342-4FFA   Free Quote-Immediately

Small Business Loans Is Not Likely From Fed’s Plan

The president’s plan will mean $30 billion in capital for smaller banks, which has the potential to leverage a far higher amount of actual new small-business lending.”

Being considered, the U.S. government would let banks get an amount equal to 3% to 5% of their assets. Required dividend payments by the banks would be reduced if they substantially increase their business lending.

Mr. Obama is likely to face resistance in Congress, especially from Republicans.   The Senate Banking Committee’s top Republican said federal officials should push for the return of all TARP funds before discussing any new uses of the money?

www.FirstFederalAdvance.com  can help you today! Hassle Free…

BUSINESS CASH NOW! -GROW TOMORROW…..

There is no doubt that the credit crunch has impacted millions of small businesses, crippling their ability to grow and create jobs.

As signs of recovery emerge, we need Congress and the Administration to address the credit crunch and let America’s small businesses get back to doing what they do best —growing the economy.

Let us help in the interm:  www.FirstFederalAdvance.com    Many options….

888 342-4FFA (4332)

Tough Economic Times – Risk Cash Flow *FFA Opens To All (Beyond Merchants)

Business Owners, Landlords, Contractors:

 All Understand That CASH IS KING!

But what happens when you are caught between payment delays and this credit crunch? Banks are just not lending to businesses. And if you don’t have your own funds, you may not be able to expand as needed or your business can potentially stop completely. So, what do you do?

Call First Federal Advance 888 342-4FFA

What is it? It’s the stop gap between payment delays and an income stream. It ensures that you, the business owner has access to capital that you need. Sometimes it calls for selling your income stream. For example, if you have Medicare or medicaid or other government receivables, FFA will buy that income stream for you. You have the cash you need without the hassel of waiting on the receivable.

Businesses should be running as usual. But as you plan for the future it may be a good time to have a contingency plan in place, especially for delayed revenue streams.

www.FirstFederalAdvance.com

www.ContractorAdvance.com

Reasons for Contractor Funding!- Working Capital-Hassle Free

Several reasons why are: 

Insufficient Capital:

Need working capital to complete the transaction or continue to grow, a reputable financier might be your ideal solution. If you have solid sales orders but lack the working capital to complete the transaction or continue to grow, we  might be your ideal solution.

Established and reputable companies explore options for securing working capital, find a company that provides the capital you need and takes no equity or ownership interest in your company. 

Speed of Funding:    

Company should conduct a rapid due diligence and review the details of the transaction.  Clients need a quick response so they can keep their profits and operate efficiently.

Increase Profits:

By leverage w/cash, so you may realize even more profit by saving on costs, by getting increased supplier discount(s).     

Protection of Identity: 

You can create what matters- Because of your affiliation, you’ll  keep thriving .

Our leadership and experience has guided many clients through their short-term challenges. This is a way that contractors have gained the advantages of our strength, flexibility and aptitude in transaction management.

For your success and the benefit you bring to your customer(s), be sure the Co. you align with offers you the same. Find out the process of the Co. you are considering,they vary.  

Vendor produces and ships goods. Goods are delivered to the customer. We advance a percent of receivable less any fees

We make it possible for clients without capital to build companies. They use us to assist with future growth. Keep it simple and to the point. 

www.ContractorAdvance.com 

www.FirstFederalAdvance.com

 888 342-4FFA (4332)