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Tuesday, 26 December 2017 11:55

Where to Obtain 18 Wheeler Financing

Where to Obtain 18 Wheeler Financing

When we talk about 18 wheeler financing, there are a large number of businesses around the globe who are dependent on it. The primary reason is that the costs involved in acquiring a semi truck – is nearly tens of thousands of dollars. Thus, truckers are constantly looking for options that can fund them to make purchases. It is critical to acquire and maintain the best equipment if you want to stay ahead of the curve in this modern trucking industry.


The number of 18 wheelers being used around the world for various operations, such as making deliveries of equipment and so on, is increasing at a rampant pace. There are many loan and lending options available in the market to make this expensive vehicle accessible for their businesses. Depending on the provider, you can get 18 wheeler financing of any age, type, and size.


However, there are many things to consider when you are looking for an 18 wheeler financing option to grow and expand your business. From understanding what your lender will be covering, interest rates and other fees, and repayment terms – it is important to compare all options before making a decision. It all depends on your needs, long-term goals, and business type. Many of the banks have now started to finance the full amount of the semi truck you require for your business. But, this is mostly applicable to newer commercial vehicles. There have been several instances where lenders refused to provide 18 wheeler financing to businesses because they sought after a commercial vehicle that was more than five years older. This is due to depreciation that significantly reduces the value of the vehicle. Likewise, the terms are agreed on the basis of the type of risk the lender is willing to take to fulfill your needs.


For all types of vehicle-based businesses, it has become crucial to obtain 18 wheeler financing to grow your business and gain the competitive edge in the market.


What is 18 Wheeler Financing?


The businesses dealing in a fleet of vehicles are always looking for different financing options. This is important for the expansion of the business giving them access to vocational or transportation vehicles including cement trucks, semi trucks, dump trucks, etc. For a business seeking to fund, there are several business cases where commercial truck loans where funds are granted for a variety of errands like delivery, storage, etc.


Irrespective of the size of the company, businesses do not have enough disposable income to finance vehicles when demand surges. That is where 18 wheeler financing helps.


There are different finances available in the industry offering loans to individual truck owners. However, there are terms and conditions where business owners have to purchase three or more vehicles. The basic reason why lenders insist buyers to increase the number of vehicles they invest upon is that they can make a substantial amount of money to finance their loan in the future. This means if a business purchases 10 commercial trucks and one of them is malfunctioning, the business will not fall apart but continue operations with the remaining functional vehicles. This has a positive impact on both - income and repayment. Therefore, if you only want to purchase one vehicle then it is important for you to prove that you have a steady income stream. If you are not able to gather substantial evidence for your income, the lender may not grant you a loan.


There is a multiple risk factor that comes into play when you are planning to secure a loan for commercial vehicles. This includes being a new business, poor credit report, old truck, insufficient cash reserves along with others. If you are new in this business, it will be very difficult to secure a loan due to lack of credit and revenue history. Other than that, if you succeed in getting a loan, the interest rate will be high, or you will get only 10 to 50% of the financing

 

Read More: How merchant cash advance could be beneficial for you


18 Wheeler Financing for Bad Credit


In this ultra-competitive finance world, it is important to understand that for almost all types of vehicle acquisitions, an individual must have a perfect credit score. Anything less than perfect would make it impossible for them to purchase an 18 wheeler for their business. For truckers, this not only affects the business but their personal lives as well. One of the simplest and effective methods to acquire a semi truck while having a bad credit is to opt for alternative lending options such as Merchant Cash Advance, or MCA. The alternative lending options can easily help you to get your hands on 18 wheeler financing even if you have bad credit. It has become quite simple as you can apply for the funds by submitting an online application.

Merchant Cash Advance is a viable option for those truckers who do not have a high credit score. The reason why MCA lenders extend their services to people with bad credit is that they are not a risk to their business.


It is believed that individuals with credit scores over a certain specified amount do not qualify for 18 wheeler financing service, but alternative lending options solve this matter. The lenders are willing to offer funds to all those individuals that have bad credit so that they can start generating income for their households by driving trucks. Together, they seek to make a business partnership that is mutually beneficial for both parties.

 

Read More: How ACH Loans are better for Your Business


How to Obtain an 18 Wheeler


Truckers who are looking to grow and expand their businesses for a greater income are turning their attention towards 18 wheeler financing. Several alternative lenders are willing to directly fund your purchase after analyzing and understand the situation of your company. If we talk about MCAs, the lenders follow a simple process which initiates from getting to know your business details, finances, and long-term goals. This helps them devise a plan to get you the desired financing for your 18 wheeler truck so that you can efficiently meet your business needs.


When you choose Merchant Cash Advance to finance your next 18 wheeler truck purchase, the lenders will not restrict you to buy newer or used models of the truck. You will have the freedom to choose the truck that fits your business needs regardless of the make, age, and model. Make sure that you are only choosing this option so that it benefits you or your business – thus, make an informed decision by understanding all the requirements and payment terms clearly. Shop around to have multiple options on your table so that you can compare and choose the best one that offers the best deal.


It is important to understand that 18 wheeler financing is an important step to take your business to the next level. Therefore, look for a lender who has several years of experience in the commercial truck financing industry. Typically, MCA lenders cater to both prime and subprime truckers to obtain a cash advance to fund their purchase.


In such an economy, the processes to get conventional loans have become tough while alternative lenders are becoming borrower-friendly to assist everyone. If we talk about collateral, the truck itself is a valuable one – thus, it makes it an important investment.

There are many businesses who tend to go for a used 18 wheeler financing for a commercial truck instead of a new one. This is because of the pricing that many businesses owners cannot afford. Usually, a new 18 wheeler truck easily costs between $30,000 and $2,500,000 depending on the type, age, make, and model.


Considering the economy and fluctuations of fuel prices in recent years, the market has seen more interest in used commercial trucks. More businesses are buying used commercial trucks at a fair price that helps them grow business and generate higher income. The reason why people are not interested in buying new trucks is due to depreciation – it could be severe in a market where there is a glut of used commercial trucks.


If you play smartly, the money you save by purchasing a used 18 wheeler truck can be used for different purposes such as making an extra down payment or invest in adding extra features including better lights, a modern navigation system, showers, sleeper, and more to make yourself comfortable while you are on the road.

Published inPBC Blog

 

Dump Truck Financing With Merchant Cash Advance

The construction industry is one of the most profitable industries in the United States. No wonder real estate companies seem to be having such a good time in the present moment. Lots of persons have often looked forward to being a part of this hugely successful industry. Because of this, some have started small dump truck businesses in order to render services in the area of transporting loose construction materials such as sand, gravel, and demolition waste to and from construction sites. The construction industry, however, is far from being a bed of roses. This means that every now and then small dump truck companies often find the need to secure dump truck financing.


At first glance, this should prove to be easy but the question of obtaining business funding from commercial banks has become too complex. As the years go by it becomes more and more difficult for small businesses to secure funds.


Why are small businesses looking away from traditional sources of business funding?


Stringent regulations on the part of the commercial banks add to the difficulty. For instance, it is well known that commercial banks would not necessarily offer loans of less than $50000, meaning that small businesses that might typically need loans below this amount are denied access to business funds. In addition, banks often demand collaterals which the small business owners are unable to produce.


That is even if one does not consider the bitter experience businesses go through when loans are not repaid at the specified time. In our present time, small businesses are beginning to realize that if they are to survive they must look beyond the traditional financing institutions, especially when seeking such things as dump truck financing. After all, banks might even be less willing to offer loans to small construction service companies who are seeking to invest in such high-cost machinery like dump trucks.


Turning from commercial banks, small businesses have ventured into alternative sources of funding some of which have proved to be only a little better than commercial banks. One of the commonest alternative sources of business funding which small business have explored is microlending. But it also happens that microlenders do not issue business loans that are in the excess of $35000.


Moreover, they almost always require the same rigorous documentation procedures that one often associated with commercial banks. From requesting for a detailed description of what the loan is to be used for to asking for detailed financial statements the list of what is demanded is almost endless. However, they differ from commercial banks in that they do not request collaterals; nor do they require that a business should have good credit before loans are issued.


Most of the things that are true for microlenders are also true for other sources such as the business line of credit, online lending and the rest. But in order to obtain easy and quick dump truck financing, other sources such as merchant cash advance has to be explored.


Introducing merchant cash advance as an alternative to other sources of business funding


A merchant cash advance allows a business owner whose business fulfills a large portion of its face to face business transactions using credit cards. From a technical perspective, a merchant cash advance is not a loan, even though most persons might erroneously regard it as one—perhaps because it is known to serve the same vital purpose of helping a business to expand, shop for new pieces of equipment, and even pay workers. To be precise, a merchant cash advance is a lump sum of money given to a business based on the future receivables or credit card sales of the business. The merchant which is the business often signs a merchant agreement with the merchant cash provider which enables the stipulated amount of the merchant`s credit sales to be transferred to the merchant provider on a daily basis—or at any other interval which both parties agree to. In order to determine what fraction of the merchant's daily credit sales should be withheld, the merchant providers evaluate the risks and try to determine whether the dump truck business, in this case, can repay the dump truck financing.  Merchant providers are bent on recouping their financial investments in the shortest possible time. In most cases, they demand that the advance is paid back in less than 18 months in stark contrast to what obtains with commercial bank loans.

 

Read More:Making it Simple: How ACH loans work with MCA

Reasons Why Merchant Cash Might Be the Best Option for Your Dump Truck Business


Quite a number of business people have objected to having merchant cash advance and at first, their reasons might appear somewhat plausible until one decides to take a closer look at some of the facts on the ground. First, it is often said that a merchant cash advance is arguably the most expensive financial service on the planet at present; although this is quite an exaggeration—a malicious one at that—it is true that merchant cash advances are more expensive than, say, commercial bank loans. Annual percentage rates for dump truck financing through merchant cash advance are also known to be higher than those of loans from most traditional financial institutions. But it often seems to escape the minds of these critics that a merchant cash advance, for one thing, is an unsecured loan, so to speak. And being an unsecured loan, the merchant cash advance provider stands at a great risk of losing his investment if the business suffers from unprecedented events such as war or natural disasters and as a result, fails. Since the risk is quite high, merchant providers are simply being pragmatic by opting for high returns on such risky investments—unsecured loans.


It is also said that a merchant cash advance does not help build credit since it is not a loan. The implication is that no matter how well a business does to repay the advance in real time, payment histories will not typically send to credit card bureaus. But merchant cash advance providers accept dump truck firms seeking dump truck financing even though their credit scores are poor—below the usual 650 or so set by commercial banks. In addition, the chances of obtaining a merchant cash advance are much higher than can be expected of commercial bank loans. For instance, it is well known that securing a loan will often come after several months of processing which excludes the several weeks before a feedback is issued on the application in the first place. But in the case of merchant cash advance, it only takes a few business days for a decision to be made on the application. And once this decision is in favor of the merchant, it takes a couple of days as well for the cash to be delivered. There have been several instances where the entire process took less than 1 week to complete. Surely then, a merchant cash advance is the number one choice for small businesses that are urgently in need of cash. After all, dump truck financing from merchant providers could be as large as $250000 depending on the volume of credit sales the firm processes.

 

Read More: How Businesses are Obtaining Their Machinery Finance


How a Merchant Cash advance Works


It is important at this point that one understands how a merchant cash advance works because doing so will help a business owner to better appreciate the simplicity of merchant cash advance transactions. The first thing one needs to know is that merchant cash providers are in the business to make a profit and that being the case; the actual amount paid back by the merchant is higher than the advance received.  According to a number of merchant cash advance providers, a business often pays around 20 to 40 percent of the advance it received.( this is not, however, an interest). This percentage is usually represented as a factor rate with 20 percent meaning a factor rate of 1.2, and 40 percent standing for a factor rate of 1.4. There is, however, a huge difference between the holdback amounts which is the amount the business pays to the merchant on a daily basis and the repayment amount for the entire advance. For instance, a holdback amount of 15% means that 15% of the daily credit sales will be remitted to the merchant provider in order to offset the dump truck financing received by our hypothetical dump truck company; while a repayment amount of 30% means the merchant will pay 30%  more than it borrowed over the entire period.


Conclusion


In all, merchant cash advance has always come to the rescue of small businesses when it mattered most. Business owners are beginning to see the possibilities that come with a merchant cash advance—quick cash in a short period of time. So dump truck firms seeking dump truck financing to keep their companies afloat especially in the highly competitive construction industry will find that a merchant cash advance is about all that they need. So wouldn't you make the call today to get quick ready Merchant Cash advance funds for your dump truck business?

Published inPBC Blog

Commercial lending and the Future of Merchant Cash Advance


Commercial lending is a term that is used to describe the act of one business lending to another business. Once the issue of commercial lending comes up, the first thing that comes to mind is the lending to different businesses by commercial banks. But in the United States, bank lending is not exactly significant at the level of large multinational corporations the same way it is in most other countries. The reason for this is that there are alternative sources of funds for big businesses such as the bond market. Small and medium scaled businesses, however, still look at banks as a crucial source of funding—but this reliance on commercial banks is dissipating fast.


Forms of Business Lending


Business lending can take the form of commercial mortgages; that is when a business seeks a loan in order to purchase buildings. Loans can also be obtained for equipment, expansion, or even to redeem other debts. Commercial lending can also take the form of project financing or bridge loans which are offered on short-term basis pending when the borrowing business is able to find a more permanent source of funds for the project at stake. So a commercial loan is a debt-based funding arrangement that involves a borrowing business and a particular financial institution, in which the later provides funds for major capital expenditures of the business which it cannot afford at that particular time


Small businesses, however, face significant obstacles in having access to commercial bank loans. Of course, expensive upfront costs, as well as regulatory hindrances, pose as one of the major obstacles obstructing small businesses from gaining direct access to debt and equity markets in general. Other commercial lending options are; however, open to small business and it is one of those alternative sources of business funding that we seek to explore. Meanwhile, it must be noted that most funds obtained through sources other than commercial banks only serve to further the short-term interests of the business—whether it is to cover operational costs or to purchase equipment to boost the production process.


Renewable and Nonrenewable Commercial Loans


Commercial loans can be of the renewable or nonrenewable kind. Nonrenewable loans are just a one time short-term financial assistance to a business. But some banks and financial institutions offer loans that are renewable. Renewable loans provide funds to businesses which help it to maintain operations while guaranteeing that it will repay the loan at a specific time that is agreed by both parties. Once the initial loan has been repaid it can then renewed at the request of the borrowing business. Businesses that rely on commercial lending opportunities often prefer to opt for commercial loans in certain situations.


Secured and Unsecured Commercial Loans


Commercial loans can also be secured or unsecured. The first that thing that the lending financial institutions consider before granting the request for a loan is the creditworthiness of the borrowing business. In order to determine the creditworthiness of the business, balance sheets and other similar documents will often be requested in order to determine whether or not the business has a consistent cash flow. In fact, commercial banks, for instance, will often require monthly financial statements from the banks throughout the period of the loan. So a loan that is secured is one in which there is a personal guarantee from the business owners that the loan will be repaid at the specified time; while an unsecured loan is one in which there is no such guarantee. Now that we have explored what commercial lending is all about, we shall shift our focus to what we have earlier identified as a major source of alternative business funding for small and medium-sized businesses—merchant cash advance


Read More:
What’s the Difference Between a Term Loan and a Merchant Cash Advance


Brief description of Merchant Cash Advance


Merchant cash advance is not a loan, at least from the legal perspective. It is a commercial transaction in which a business (henceforth referred to as the merchant), and a financial lending institution (henceforth referred to as the merchant cash advance provider or merchant cash provider for short) agrees to sell a portion of its future receivables to the merchant cash provider in exchange for a lump sum of cash. That is, the merchant sells its future credit card sales to the merchant provider in exchange for immediate cash.


Read More:
Check into the Merchant Advance that is Helping Businesses Everywhere


Obtaining commercial lending through a merchant cash advance provides the merchant with an unsecured loan. There is no personal guarantee on the part of the merchant that the loan is to be repaid at a particular time, and in short, if the business falls into hard times and eventually fails as a result, the merchant provider loses his cash investment. This is to say there is no such thing as collateral in merchant cash advance transaction. Merchant cash advance also differs from a loan in that no interest is charged on a cash advance. What happens is that, since money at any instant is usually worth less than its value at that instant at some future date, the future receivables are sold to the merchant provider at a discounted rate.


How Merchant Cash Advance Works


Let us take a particular scenario where a merchant requires a specific amount of advance in order to purchase new equipment to boost its production levels. The merchant would be required to sign a merchant agreement after which the said cash will be obtained from them, merchant provider. If this amount is, say, $10000, the merchant provider multiplies it by a certain factor that is typically less than 1.5 to account for the discounted sale of the future credit card sale of the business against which the advance is to be recovered. If this factor is 1.5 then the total amount the merchant repays becomes $15000. The merchant then determines what the retrieval rate should be. The retrieval rate determines what fraction of the daily credit card sales goes to the business. This is usually in the form of a percentage that often falls below 25. Once an agreement has been reached on this rate, daily withdrawals are made from the merchant and forwarded to the merchant provider until the advance has been repaid.


How do the Merchants Earn a Profit?


Commercial lending involves profit making and merchant cash providers are not be left out. Merchant cash providers make their profits from the difference between the actual cash advance and the factored amount which the merchant pays back. There are some who view merchant providers as extortionists who need to be kept in check. They argue that a merchant cash advance is about the most expensive financial product on the planet and intensify calls for the government to carry out oversight functions in the industry. True, the cost of a merchant cash advance is quite high when compared with loans of commercial banks but its benefits more justify the cost.


Is the relatively high cost of a merchant cash advance justified?


First thing first, a merchant cash advance is an unsecured loan in which the risks are very high for the merchant providers. And it is the normal practice in commercial lending for unsecured loans to attract a higher interest rate. With no collateral or even a personal guarantee from the merchant, the merchant cash advance providers are doing sound economics by asking for a substantial factor margin. If one is to combine this with minimal documentation and speed that is integral to the process of obtaining a cash advance, one can clearly see how the value justifies the cost.


The Future of Merchant Cash Advance


A growing number of small business owners are beginning to appreciate the advantage that alternative sources of funding provide for the survival of their businesses which are the mainspring of modern economies. Time and again research has shown that small businesses that solely look to commercial banks for working capital might be in for a big surprise. For instance one study showed that more than 50 percent of loan applications by small firms were turned down by banks. Another study also showed that loans from sources other than commercial banks accounted for more than 4 billion dollars in a single year.


But not all small firms are eligible to receive a cash advance. Merchant cash advance is especially meant for small businesses that process a large amount of credit card sales on a daily basis. Businesses such as restaurants and filling stations are some of those that fit this picture. For a business to eligible for an advance, it has to process over $5000 worth of credit card transactions on a monthly basis. Other commercial lending options are, of course, open to small businesses that fail to meet these and other criteria for obtaining merchant cash advance.


Conclusion


It would seem from the foregoing that the future of the merchant cash advance industry will continue to glow brighter and brighter. This is exactly what is to be expected for merchant providers have shown that funds can be available to small businesses without too much hassle when needed.

Published inPBC Blog

Check into the Merchant Advance That is Helping Businesses Everywhere

When it comes to merchant advances out there, you want to make sure that they're going to provide you with a bit of everything you need for your business. Never have to worry about not being able to cash out on the benefits, as they’re right there in front of you. So what do you think other businesses are saying about the merchant advance that they got for their company? Do you think that they enjoyed using this process and that it actually helped them in the end?


Knowing this information gives you an idea of what you’re able to get from the merchant advance and whether or not this is the right choice for you to go with, in the end. You always want to make sure you’re getting a bit more out of the advances and this is the best one to go with.


Find out more right here and then choose whether or not you should be the one to move forward with the merchant advance and all that comes with it. Take the time to help your business through this tough time and work with a merchant advance broker and lender that are going to lend a hand when needed.


Big Businesses Using a MCA loan


Even big businesses are finding that an advance is the best way to go. With their help, these businesses are easily able to benefit from all that they’re providing. They can cash in with the merchant advance that is going to cover some of the bills, overhead, inventory or anything else that they might be in need of. This is something worth thinking about. If big businesses can use these merchant advances and make them beneficial, then you should be able to do the same for your small business.


When it comes to those big businesses, you wouldn’t think that they would use a cash advance to cover the costs of their business. However, this is not true. Many big businesses do not want to hassle with the big bank loans that are not going to provide them with everything that they need. Due to this, it is important that they share their experiences.


Many big businesses are raving about being able to use merchant advances for their business needs. They recommend them to anyone and everyone that also want to cash out on the benefits that come with this type of loan, even if it is not through a major bank.


Find out what others are saying about MCA loans, besides big businesses out there that use them. You might be surprised to know that more than just a couple of businesses use this type of advance when it is needed the most.


Small Businesses Benefit from Using a MCA


Small businesses can benefit from using a MCA loan when the time comes. This is something worth thinking about, especially if you are a small business. You want to make the most of the merchant advance out there and through the use of some knowledge on how others felt about it, you can.


Many small businesses are raving about this type of loan because they’re being provided with the cash they need to continue running their business. They do not have to worry about not being able to purchase inventory, meet their bills or anything else. The process is quick and easy and almost everyone is approved, so you do not have to wait weeks to have an approval letter. Your approval comes just 24 hours after signing up.


By being a smaller business, as well as a newer one that has only been running for 6 months, then you might find that landing a loan for your business can be difficult to do. This is something that you have to think about in the end. You want to make sure that you’re choosing a loan that is actually going to help you. Without the right one, you might not get the funding that is needed.


Many small businesses rave about the use of the advance that they have gotten in the past. They loved using them and ensure that they have someone there whenever they need another loan. This is a short process, but it is one that is going to create a relationship with the MCA loan lender and your company. Whenever you need funds, they’re going to be the ones to step up first and say yes, we have a long-term standing and I would not mind giving you another advance to cover the costs of running your business again. This is what every business out there wants, but it is not something you’re just going to get through a traditional bank loan.


Take the time to find out even more about these MCA advances to find out if they’re going to be the best solution for your business. They have helped countless others, it might be time for you to get some help running your business when you need it.


These small businesses have advanced because of the MCA loan that they got. Do you think it is time for your company to advance a bit in the market that you’re working in?


Everyone Benefits from Using a Merchant Advance


When it comes to benefiting from using a merchant advance, you need to find out what your needs are and what comes with the advance. These are something that can possibly help your business, but you have to ensure that they’re going to meet those needs that you have.


With a merchant advance, you can be sure to get many benefits that you would not otherwise get from a traditional bank loan. This alone is enough to make anyone want to use them for their own use. They may just want to skip the traditional bank altogether, which is why so many businesses have already used the merchant advances to their benefit.


Your Needs


Consider the needs that you have a business. What is it that you want from a loan that you’re going to be working with? What is it that you need the loan for? How fast do you need the money?


These are all going to help you decide the best way to go for the loan that you want or need. Each loan type and company provides a different bunch of benefits and downfalls, so choosing one that is matched up to the needs and wants that you have as a business looking for a loan is the best way to choose which one is perfectly suited for you.


Take the time to search through the many options out there. Find out what each of them provides and know whether you want the loan now or later, want it through a secured or unsecured way or if you would like to just cover what needs to be covered and create a long-term solution for the business that you have and the funding that you need.


Traditional Bank


When working with a traditional bank, you can ensure that you get the necessary help that is out there. This is something that you might not be able to find. However, that is the common misconception. A lot of times to get financial help from these banks, you have to jump through hoops to even qualify for the loan that you want for your business. Additionally, you’re going to be waiting for some time to even get the funds. They have a long waiting period for businesses to wait.


You might not even know if you are approved for the loan for a month. This is something that a lot of businesses do not have time for. You need the cash to pay off expenses now, not later on. You want to be able to work with a company that understands that your business needs the help that they can provide.


Traditional banks also require a lot of paperwork. Even applying for the loan can take some time, as you have to hand them just about everything that is out there to get the right agreement. Additionally, even after you do this, it does not mean that you’re going to end up with the loan. You might still get denied, even after going through the entire process.


Make sure that this is something that you do not worry about. When you choose the right loan company, you know you’re going to be set in the end. This can be done when you check into all that is out there. Make sure to look into a MCA advance, as many businesses are finding that this is the best way to go when trying to get more for their business.


Traditional bank loans tend to be old news. They’re not being used as they once were. Not a lot of people are able to be approved for the loans, which is making them turn to alternative lending solutions. When this happens, the businesses are able to find exactly what it is that they need, when they need it. They do not have to worry about going through a long process in order to get the cash that is going to help them run their business.


You can succeed in the busy market that you’re working in. You just have to make sure that you’re succeeding through the right financial gain that is out there. Now is the time to check into this and see all that you get from the MCA loan and whether or not this is the best way for you to go over the use of a traditional bank loan.


You will be happy to know that so many businesses are now prosperous because of the use of the merchant advance that helped them get to the top and not fall to the bottom. Are you ready to check them out for yourself?


Merchant Advance


The merchant advance out there is something that many businesses or even people are unsure about. They might have heard about them, but they do not know if they’re actually going to be of any use to them.


You want to make sure that the merchant advance is something you want to move forward with. The only way to go about doing this is through the use of some information. Once you have the information, you should be set to go from there.


Protect your company and all that comes with it. Know that you’re cashing out on the many benefits that are out there and getting everything that is needed. You do not have to worry about working with a company that is not going to believe in you or just counts you as a paycheck or even just a number. They should believe in your business and know that they’re providing you money for the greater good.


Don’t be your credit score either, since merchant advances do not use this to determine whether or not you’re good enough to get the advance from them. Traditional banks use this, but they through that method out of the window, since this does not


Merchant Advance Details


Merchant advances are there when you need them. Not only do they provide you with a way to cash out on the benefits of not using your credit as an approval factor, but they make sure that you get the cash sooner, rather than later. Never have to worry about not being able to get the merchant advance out there, since they want to provide you with everything that is needed and more, all within a week.


Find out even more about these merchant advances and why so many people and businesses are choosing them for the funding that they need. You might be the next one to use them because their perks are just that great!


The entire process when going for a merchant advance only takes a week or less. You apply, you get in contact with a broker, they give you options, you choose a lender, you get the loan. There are no gimmicks or hoops to jump through. You can have everything you need without having to worry about not being able to get the loan in time for whatever it is that you need it for.


Make sure to speak with the broker if you have questions that need answers. That is what they’re there for. They want you to get in contact with the lenders, but they also want to make sure that you’re obtaining the best advances out there. This can be something that comes with the advance and what you get with it.


Take the time to choose the right merchant advance. Know you’re getting what you need when you need it. Never have to worry about not being able to pay it back either. Another one of the perks is that you’re easily able to pay back the loan. There is a percentage that comes right out of the debt and credit payments that are made to your business. With these, you can feel more confident knowing that the advance is being paid off and you don’t have to remember to send in a payment in order to do so.


Don’t Wait Any Longer


If your business is in need of the loan money, then now is the time to check into all that comes from the merchant advance and what you’re going to get from it. You want to make sure that you’re not worrying about a thing, since they have you covered.


Obtaining a merchant advance within a week's time is something that is not normally done, which is why this is one of the best ways to go. You want to make sure that they’re providing you with the benefits when you choose them. Of course, there are other benefits besides being able to get the loan money so fast.


You can sign up completely online, within minutes. You do not have to go to the bank, write out an essay, send thousands of papers for them to look over and file. You just have to fill out the paperwork to the best of your knowledge and go from there. This is all that is needed. You’re in charge when it comes to taking less time to cover the costs of your business.


Another benefit is that you can get approved within minutes of applying. You have to give your social security number, but this is used to figure out any of the interest and the percentage that is going to be paid on the merchant advance. It is not used to determine if you’re qualified or approved or not. When this happens, you know you’re going to be able to cash in on the benefits.


What’s the Catch?


So many businesses want to know that the catch is since this is so easy to obtain. There really is not a catch. It is a quick and easy way for your business to get the funding that is needed without having to go to a traditional bank to do so. This helps you skip a headache that would normally follow.


Of course, there are some stipulations, but they’re really not that bad. You have to have been in business for 6 months or more, and you have to have steady cash flow into your business on almost a daily basis. This is something to keep in mind when it comes to getting a merchant advance. However, usually many of the businesses that use it benefit from it anyway since just about everyone qualifies for it.


Since there really is no catch to the MCA loan, it is truly one of the best ways to go when the time comes to get the benefits of the advance that is going to provide you with everything that you need and more for your business. Keep everything running smoothly, as it should be. Don’t hassle with that traditional bank again. You have the control to choose the alternative lending provider that is going to work with you and not make you run around crazy.


Isn’t this something that everyone wants when it comes to the lending that they need for their business or private use? You can get it now through the use of the merchant advance that is going to give you cash on hand within a week of choosing the broker that works for you.


MCA Loans are For Everyone


MCA loans are for anyone and everyone that want to get more out of their life or their business. Speak with a broker today to find out how they can provide you with the help that is needed. You should not have to worry about not being able to cover the overhead. You’re new in the market, but this does not mean you should fail or give up. Merchant advances are there when you need them. All you have to do is take the step to apply for them.


Do so today and find out for yourself how great they are. MCA loan can be made for everyone that wants or needs that extra bit of cash to push their business up and over to where they need to be.


Now is the time to check out all that is out there and make the most of the MCA loan that you’re looking into. You can ensure that this is something that is used to your advantage. Once you pay the loan off, you can even cash out on the perks later on since you can continue to borrow even more loans when it comes to helping your business get ahead and stay ahead.


Are you ready to get started? Just fill out the easy application form right online, no need to run to the bank. The broker will contact you within 24 hours of submitting your application to speak further about the loan needs that your business has.

Published inPBC Blog

Used Truck Financing Through Merchant Cash Advance

Small and medium businesses such as trucking businesses often find that it is in dire need of working capital which is not readily available. In such cases when a business owner requires a quick access to business fund in order to keep the business running, he often turns to alternative sources of funding. Truck businesses, for example, will often be in need of used truck financing which is not likely to be obtained from traditional sources. The reason is that commercial banks have become quite notorious for refusing loans to small and medium-sized firms despite their claims of having loosened up a bit on their standards in order to make it easier for small firms to access loan. After all small businesses are almost always likely not to meet up with collateral demands and credit score and business performance requirements that traditional financial institutions will require a loan.


Is Merchant Cash Advance the same as a loan?


For this reason, merchants (this term will be used to represent a small truck business owner) who require used truck financing often look to merchant cash advance which leads the pack among the various other sources of alternative funding in the United States. The alternative source of business funding industry of which merchant cash advance is major stakeholder has been estimated to account for about 4 billion dollars of the total small business loans in the county. Meanwhile, merchant cash advance is not structured as a loan, ensuring that there is no personal guarantee on the part of the business owner to unconditionally repay the loan. It is this conditionality in the merchant agreement that essentially differentiates it from a loan. Even though merchants have been known to issue personal guarantees that the business shall abide by the covenants of the agreement to not intentionally deprive a merchant cash provider of the receivables it is entitled to, there have been scenarios where merchant agreements have been made to mimic loans.


Can there be situations where merchant cash advance is made to resemble a loan?


Such scenarios could occur when the merchant cash providers demand that the merchant is to sign a confession of judgment in addition to regular merchant cash advance agreement. The confession of judgment is often applied in situations where money is due, becomes due, or when it is intended to secure the merchant cash provider against a contingent liability.  Merchant cash providers often claim that affidavits of confession of judgment are used to secure the used truck financing which is regarded as a sale and not to secure a debt as that would make the transaction a loan in the legal sense. What a confession of judgment essentially does is to dispense with an adversary proceeding and empower the creditor to file a judgment which has been voluntarily confessed by the debtor. However, legal proceedings such as the famous Clapp vs. Ely in New Jersey have served to demonstrate that confession of judgments cannot be used to secure future cash advances such as merchant cash advance.


What then is a merchant cash advance and who is eligible for a cash advance?


So a merchant cash advance is not a loan and cannot be treated as one. A merchant cash advance is merely a commercial transaction in which a merchant sells its future receivables (credit sales) to a merchant cash provider in exchange for a lump sum of cash. The merchant provider does not charge interest on the used truck financing and continues to deduct a fixed amount of the merchant`s credit sales until the advance is repaid. From the foregoing, it is clear that businesses which can be eligible for a cash advance are those which process a large volume of credit transactions on a monthly basis such as restaurants, filling stations, and large supermarkets. In most cases, merchant providers will often insist that a merchant must process at least $5000 in credit sales every month to be eligible for an advance. Also, merchants are often qualified to receive from 50 to 250 percent of the volume of their credit sales up to the limit of 2 million dollars.


Is the MCA Industry regulated?


The MCA industry as of now is unregulated. Because of this, laws which are usually binding on all loan agreements do not by definition apply to merchant cash advances. And since it is a commercial transaction between businesses, laws which apply to business-customer transactions and contracts do not also apply. However, the uniform commercial code and the fair credit reporting act do apply.  Moreover, it has been suggested that states might try to control the factored amount and the retrieval percentage but it remains to be seen how the whole drama will play out. Merchant cash providers on their own, through the small business finance association, have tried to create best practices and guides to ensure transparency, responsibility, fairness, and security even though individual merchant cash providers are not under any obligation to abide by them.


How does the whole thing work?


The first step in obtaining used truck financing is to negotiate with the merchant cash provider how much cash is needed. Once the amount has been agreed, the merchant provider factors this amount by, 1.5, to get the total amount that is to be repaid, so to speak. It is this factor where lenders make their profit. Afterwards, daily deductions are made to the merchant's credit sales until the advance has been fully repaid.  The daily deductions are often based on an agreed percentage that can range from 5 to as much as 20%. However, this percentage is not arbitrary but is based on the size of the advance, the volume of the credit card sales, the expected period of repayment, as well as other peculiarities of the business. Unlike financing from commercial banks, used truck financing from merchant cash vendors is expected to be repaid quickly. For instance, most merchant cash providers expect to recoup the cash advance in less than 18 months.


How Flexible is the payment option?


There are two methods which a company can choose from in determining its preferred mode of payment. The most common method is the fixed percentage method. In this method, a fixed percentage, let us assume 10 percent, of the total credit sales are transferred each day to the merchant cash provider until the entire advance has been repaid.  It is for good reason that this method has come to be the most preferred one. The fixed percentage calls for the payment to vary according to the current condition of the business. This ensures the cash flow of the business is not adversely affected since the business generally pays more during periods of high credit sales and less when sales begin to plummet. Although this could mean that the payment will stretch over a longer period than was anticipated with the best case scenario in mind, it does not result in any harmful consequence for the business since there will be no penalties for late repayment of the used car financing.


For the method of a fixed amount, a fixed sum of cash is remitted daily to the merchant cash provider regardless of the situation of the business. It is easy to see why this method is not often adopted except the merchant wishes to offset the advance very quickly at all cost. The fixed amount is, as a matter of fact, obtained indirectly from the percentage. For instance if it has been agreed that 20% of the daily credit sales will be due to the merchant provider, and judging from the best case scenario at the initial stage puts this amount at $5000, it is this amount that will continue to be paid regardless of whether actual sales differ from the estimate to a large extent.


Benefits of Merchant cash advance


One thing a business owner who uses a merchant cash advance to obtain used car financing stands to gain is that he bears no risk whatsoever. Because a merchant cash advance is an unsecured loan there is no true personal guarantee that the loan is to be repaid. Instead what happens is that the merchant provider loses everything if the business fails as a result of unforeseen circumstances such as fire and natural disasters.


The issue of spending weeks or months applying for commercial bank loans which are most likely to be rejected does not also arise. It takes a matter of days for a final decision to be reached on a particular merchant advance application for something like used car financing. And once a decision has been reached it usually takes a few days for the cash to be delivered. In addition, the credit score of a merchant does not negatively impact the application for a cash advance as even merchants with poor credit scores can obtain a cash advance. In all, whatever the reason for seeking cash advance, it is important for a business owner to know that when it comes to speed and reliability, merchant cash advance remains the best option.

Published inPBC Blog

Heavy Vehicle Finance for Expansion or Any Need Necessary

Small and medium scale businesses remain the major driving force the economy. Because of this, it is very crucial that they have ready access to business funding. Whenever it comes to the issue of funding, business owners generally tend to lean towards commercial bank loans. And although traditional financial institutions have begun to loosen their credit lending standards in such a manner that small business ought to benefit, there is still the need for small and medium business owners to look to alternative sources of funding. Small businesses, for instance, truck companies might often be need of heavy vehicle finance in order to purchase or rent new vehicles might find it difficult to obtain funding from traditional sources for a number of reasons.

Why are more and more small businesses looking to other sources of funding?


From a credit survey by the federal reserve bank of New York, it was revealed that some 57% of small businesses were refused loans from by commercial banks or did not even bother to seek loans from such banks. The implication of this is that this percentage of businesses is willing to explore other options in order to obtain the much-needed capital to ensure their continued survival. One of the major reasons why small firms are denied loans according to the same report is insufficient collateral—and this accounted for more than 40% of the total rejections. Week credit score and poor business performance were also major factors that influenced the bank's` decision not to issue loans to small businesses. So whether it is heavy vehicle finance or some other form of business funding, a business owner is going to have to explore other forms of financing that are independent on those criteria.


One of the leading sources of alternative funding in the United States is merchant cash advance popularly known as MCA. It has been said by various financial experts that merchant funding has revolutionized the way in which businesses obtain funds—especially in terms of ease and speed. It has been estimated that there are currently more than 1000 merchant providers in the country, underscoring the point that the industry is booming. Merchant cash advance companies are in business to provide working capital for trucking businesses and to small and medium-sized retailers (we shall refer to those as merchants henceforth) in exchange for the future receivables of the merchants through a special form of factoring.


Heavy vehicle finance can, therefore be obtained through merchant cash advance. This requires that the trucking business owner signs an agreement known as merchant agreement which empowers the merchant provider to recoup the cash advance from the future credit sales of the business. This kind of transaction is quite different from a loan, at least from a technical perspective, even though they both serve the same function of providing capital to the same which is to be recovered all the same. To make this point clear let us look at an explanation provided by the United States court of appeal for the second circuit: A sale is the transfer of property in a thing for the price in money, while al loan of money is a contract by which one delivers a sum of money to another and the latter agrees to return at a future time a sum equivalent to that which he borrows.


How does a merchant cash advance differ from a commercial bank loan?


It is very clear from the above definition that merchant cash advance is referred to as a sale; that is a mere commercial transaction which involves two businesses. To further differentiate cash from a loan one can point to the fact there is no actual guarantee of payment in a merchant fund as obtains in a commercial loan. This means that the merchant provider can only expect to generate the advance from the future credit sale of the merchant as long as the business is in operation, and is liable to suffer total loss if the business fails. However, the merchant has a duty to not engage in fraudulent activities or other acts of deception that will deny the heavy vehicle finance provider it’s purchased receivables. And although the merchant generally guarantees that the business will keep to the terms of the merchant agreement, he is not legally considered as an unconditional guarantor for the repayment of the loan.


Being that a merchant cash advance is regarded as a commercial transaction, it is not subject to such laws as the commercial usury and licensing laws in each state. Although the industry is unregulated as of now, merchant loans are still subject to the uniform commercial code of each state and also the fair credit reporting act. In general, the terms of a commercial loan are fixed but those of a merchant loan for heavy vehicle finance is not fixed. For instance, while a bank loan is expected to be repaid at a particular time, the time for the repayment of a merchant advance is not fixed. Moreover, there are no penalties for supposedly late payments as obtains in a bank loan, nor are there rewards for quick payments.  One thing also needs to be said: merchant loans do not attract interest in the traditional sense of the word. If that is the case, one begins to wonder how merchant providers manage to make profit.


How merchant cash advance works and why it might be the best option for heavy vehicle finance


In order for a trucking business to obtain heavy vehicle finance it from a merchant provider, it signs an agreement empowering the provider to receive a percentage of its credit sales until the advance is paid. The actual amount paid is the advance times a certain factor and this gives the total amount payable by the business. It is the difference between the advance and the total payable amount that yields a profit for the merchant provider in the long run.


There are two ways in which the cash advance can be deducted from the business. The first requires that a fixed percentage of the sales that have been agreed upon—usually less than 25%--is transferred to the merchant provider until the heavy vehicle finance is repaid. The other method requires that a daily, fixed deduction is made until the advance is repaid. Each of the two methods has its advantages as well as disadvantages. In the fixed percentage method, for instance, the actual amount paid is dependent on the prevailing business situation. If the times are good, more of the merchant advance is paid, and if times are not good, lesser is paid.  This method is often more advantageous to the business since it imposes less strain on cash flow and is the method most adopted by merchants. This, however, means that the time in which the heavy vehicle finance will be repaid cannot be known in advance. But, in the method of fixed payment, the actual time of payment can be estimated, although there is no reward for quick payments.


Why merchant loans are in high demand


The number one reason why merchants often seek merchant funding is that of the speed with which it can be obtained. A trucking business which needs heavy vehicle finance to buy or rent new trucks will always benefit if the advance is obtained much quicker. While commercial loans will often take weeks or even months to process, it takes a week or less for a merchant finance to be obtained. In addition, the chance of obtaining an advance is much higher than that of a commercial bank loan.


Minimal documentation is also another factor that has endeared small business owners to merchant funding. Only the details of the business credit sales for the previous few months are required alongside other minor documents such as drivers’ license. Furthermore, a good credit score is not required in order for a business to obtain merchant cash advance.  Small businesses have been known to spend a great deal of time trying to improve their scores before applying for bank loans. But by obtaining heavy vehicle finance through merchant cash vendors, they are able to find working capital with their seemingly poor credit scores.


Finally, nothing is probably as attractive about merchant cash advance as the fact that it is an unsecured loan. This is not surprising considering that most businesses are unable to meet up the collateral requirements of banks. And better still, no personal guarantee of any other kind is required. Therefore, it is the merchant cash provider that stands to lose if the business happens to fail.


Conclusion


Heavy vehicle finance is something that those in trucking businesses might often require from time to time, either when looking to purchase new trucks or carry out major servicing in older ones. Considering the numerous advantages of merchant cash advance which often offsets it’s seemingly high cost, a trucking business owner will find that is much better to rely on merchant loans for working capital instead of loans from traditional sources.

Published inPBC Blog

 

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