Retail Store Financing/leasing And Business Loans

For this update, retail store financing can come in the form of financing/leasing 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 bank monies are better off served in different industries from a risk/reward factor. However, there are niche banks out there that will entertain retail store financing but usually need the applicant to have at least a minimum of one to two years time in business. For the most part startups don’t have a chance unless their personal credit score are over 700 and are ready to pledge additional collateral to the arrangement with added clear and free assets. The banks 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 consideration:

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 article is the merchant cash advance/loan programs. Generally people aren’t even responsive of these programs….

The first 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 previous 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 bank will finance up to. Some cash merchant advance companies will finance up to $750,000 per location.

This is a skillful 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 great for businesses that have seasonal cash flow needs, that aren’t capitalized properly and call for more time to achieve their sales base, have credit issues that can’t be overcome at the bank, businesses that want instant cash now, and apparently lots of other factors tailored to specific businesses.

These banks aren’t FICO driven and are attracted in you past Visa/ Mastercard Sales for the prior six months. Usually the company’s bank statements, the merchant processing statements and a signed application are required to start 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 client repay back the loan or cash merchant advance? It is from the impending card sales, a small piece is paid back each day to pay back the financial institution This is important because there are no balloon payments or monthly payments to consider. The financial institutioncalculates a little repayment per day that can last up to one year.

Locating available capital whether through leasing and working capital can be very complicated in todays times. The cash merchant advances/loans can offer the seasoned business an unique opportunity to obtain funds without all the red tape conventional lending institutions 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