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

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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

Working Capital For Sm. to Med. Sized Businesses- Hassle Free-Fast

In today’s economy business loans have become especially difficult as banks  stopped lending to most of us.  It becomes complicated to get a traditional  business loan as many programs have been discontinued and new unrealistic requirements have been put in place.   

Funding  can be used for anything,  with no questions , partner buyout, expansion, taxes, payroll, inventory as well as many other needs?  The credit score  is not a deciding factor in the approval process, enabling the business owners with weaker credit to participate in the program.   The typical amount of advance ranges from $5,000 to $150,000. 

Our  90%+  approval rates are much higher when compared to the traditional fundings. In most cases the funds can be obtained in as little as 72 hours.  There are no checks to write and no possible late fees or switching processors – plus 11 different programs to suit your specific needs!  Merchant cash advance, contactor advance and spot factoring are very resourceful in today’s times, when the banks are just not there for you. We help w working capital and meeting cash flow needs. 

www.FirstFederalAdvance.com 
We  provide business working capital to small and medium-sized businesses and is an alternative to traditional business loans and other types of conventional secured financing.

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

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 Funding-Advance’$- Hassle Free

Regardless of receiving billions of dollars in bailout funding from the federal government, America’s largest banks are still not lending. 

This lending freeze has been felt more in the Small Business sector, as entrepreneurs remain in limbo and business owners fight to stay alive. Many small business owners, excited by the bailout plan that propped up banks so that they would lend, have begun to seek out new means of credit.

One of these means is a business cash advance, a type of cash advance that hedges against your business’  receivables and deducts from your intake to repay debt. As long as you can provide statements that prove solvency and have been a business more than 6 months, you qualify. While banks became insolvent through bad loans, Business Cash Advance companies have created a new way to borrow that doesn’t involve risky loans.

The business model has become so popular that businesses have created entirely new ways to connect to providers. FFA launched an application on-line to help connect borrowers to us who want to get immediate funds for their business. Not only can we help you with your advance, you can find out how much you might be entitled to.

Banks tightening restrictions when they have necessary funds to spare is not the only reason for this shift to Business Cash Advances. After the credit crisis, many business owners and borrowers are wary of taking out a traditional business loans where they would be forced to make payments and keep track of the finances each month. One of the benefits of a business cash advance is the ease of repayment. Funds are automatically deducted from your daily  receivables until your debt is repaid. There are no complicated bills to sort through or late fees to contend with.

These technological advances have only made access to these new financial programs easier. As communication methods make these simple transactions even easier to obtain, there is no end in sight for Business Cash Advance’s.

In a market where obtaining financing is near impossible for business owners, FFA makes finding cash for your business easy again. Check out our website and see how we have found the best means of alternative financing for your business! www.FirstFederalAdvance.com www.ContractorAdvance.com

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