Lots of business owners are looking to expand their business in one way or another. Whether it be renovating the restaurant, purchasing more inventory for the store, redoing seating areas, or even expanding to an entirely new location, merchants need funding.
Unfortunately, many of these businesses happen to fall in business type categories that are not eligible for obtaining your typical business loan from a bank. Banks are looking for several major factors when considering a business for a bank loan.
First and foremost they want to know what type of business they are funding. Businesses which are in the service industry or are retail businesses statistically have higher rates of failure, and thus banks frown upon these risky investments.
Secondly, banks want to know how long the business has been operating. Underwriting standards have increased greatly since the economic recession, and thus banks usually don't lend money out to a business that hasn't been operating for 5 years.
Thirdly, banks look at profit and loss sheets to see how the business has been actually performing. If a business hasn't been growing steadily or has shown a loss, then most banks will not fund these businesses.
As a result, many business owners have turned to alternative financing sources that offer different types of funding options. Not all private financing companies offer the same types of programs, and Paramount Merchant Funding happens to offer several unique programs that can allow the merchant's business to grow.
The most popular program is the merchant cash advance program. Merchant's eligibility for this unsecured form of funding is strictly based off of monthly credit card sales and a minimum credit score rating of 500. Even business owners with sub-500 credit can obtain merchant cash advances through starter programs. Merchants can receive up to 150% of what they process monthly. One of the best things about this program is that the business owner only pays back the advance as his business makes money.
A newer program that has opened the last few years at Paramount Merchant Funding is the small business loan program. This funding process is based off of total monthly sales. Paramount Merchant funding realizes that not all businesses obtain their main income through credit cards and in fact many businesses operate off of checks. Thus small businesses are able to obtain cash for their business regardless of whether they are primarily a cash or credit run operation.
The best part about alternative financing is that it is a quick process. Where bank loans (if they are even appropriate) can take weeks or even months to process, Paramount Merchant Funding's programs are fast and require minimal paper work. This means that literally within 72 hours large amounts of cash can be in a merchant's bank account ready to use.
Finally these funding programs are unsecured. This means a lot for many business owners as there is no collateral or personal finance attached to this form of funding. This means that businesses can take a risk and chance which is required in all business practice, and not be concerned that their credit score and entire life savingsis in jeopardy.
Irish Taylor is a small business funding consultant with Paramount Merchant Funding and has been providing business owners with financing since 1992. For years she has helped people qualify for unsecured business loans and merchant cash advances.
Article Directory: http://www.articletrunk.com
Irish Taylor is a small business funding consultant with Paramount Merchant Funding and has been providing business owners with financing since 1992. For years she has helped people qualify for a unsecured business loans.
Please Rate this Article
Not yet Rated