Retail Store Financing/leasing And Business Cash Advance

For this update, retail store financing can come in the form of business loans and businesses seeking working capital in the structure of a cash merchant advance and/or merchant cash loan. Todays financing market is very illiquid in presenting retail businesses leasing/financing. Most financial institution portfolios are better off served in different industries from a risk/reward factor. However, there are niche banks out there that will think about retail store financing but usually require the candidate to have at least a minimum of one to two years time in business. On the whole startups don’t have a chance unless their personal credit score are over 700 and are willing to pledge additional collateral to the arrangement with additional clear and free assets. The lenders that finance retail store financing will properly offer up to $50,000 application only and over that amount full financial and tax disclosure would be mandatory … Accepted leases can run between 24-60 months with various buyout clauses…

The following is the type of retail stores under deliberation:

Book stores, sporting goods stores, clothing stores, pizza shops, men and womens apparel stores, discount stores, pharmacies and drug stores, fast food restaurants, music stores, video stores, franchise restaurants, mail centers, pet grooming stores, dry cleaners, tanning salons, etc

The most unique part of this commentary is the merchant cash advance/loan programs. Generally people aren’t even attentive of these programs….

The primary question a lot of people are asking is what is a merchant cash advance? An established business in existence for one year or more with visa and mastercard sales can qualfiy for a loan or a merchant cash advance on their historical activity up to $150,000 from a financial institution and $750,000 or more per location from a true merchant cash advance company. The monthly average of their visa and mastercard sales x 1.5 will be a qualifying amount that the lender will fund up to. A number of cash merchant advance companies will lend up to $750,000 per locality.

This is a great way for a business to get hold of working capital. Most conventional financial institutions shy away from the retail industry.

These cash merchant advances/loans are good for businesses that have seasonal cash flow needs, that aren’t capitalized correctly and need more time to achieve their sales base, have credit issues that can’t be overcome at the bank, businesses that want instant cash nowadays, and perceptibly numerous other factors tailored to specific businesses.

These institutions aren’t FICO driven and are involved in you past Visa/ Mastercard Sales for the preceding six months. Usually the company’s bank statements, the merchant processing statements and a signed application are required to begin the lending process. Once the financial institutionhas received these requirements, a decision can be made fairly quickly, usually within 24-48 hours. Beyond an acceptance, the money is usually funded within seven business days.

The next obvious question, is how does the customer repay back the loan or cash merchant advance? It is from the forthcoming card sales, a tiny piece is paid back each day to pay back the financial institution This is imperative because there are no balloon payments or monthly payments to consider. The lendercalculates a diminutive repayment per day that can last up to one year.

Finding available capital whether through leasing and working capital can be very complex in todays times. The cash merchant advances/loans can offer the seasoned business an distinctive opening to obtain funds without all the red tape conventional banks demand

Happy hunting for your financing…..

By: J.M Casa

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J.M Luna has over thirty years experience in the financial field. This includes accounting and taxes, leasing, cash merchants advances and commercial loans. U.S Corporate Capital Leasing assists the start up and small business for financing in different industries. www.cclgequipmentleasing.com/cashadvances.htm www.cclgequipmentleasing.com/cashadvances-150k.htm