Merchant Cash Advance: Get into the Cash Flow

From time to time in life and in business we all need some extra cash to cover expenses. I'm sure we've all been there, and I'm sure we will all be there again. That being said, I was interested to learn about a study commissioned by New York based Capital Access Network, Inc (CAN). The Study was conducted nationally among small to mid size business operators who accept credit cards as form of payment. For the sake of brevity I'll just highlight some key points:

77% of business polled used credit cards to make purchases over $5000 two or more times per year and make only minimum monthly payments.

50% of those individuals did not understand the long term implications of making large purchases on a credit card.

A purchase of $5000 with an 18% APR can amount to an actual cost of $18,000 and would take 46 years to pay off if only the minimum monthly payment is made

73% of those polled where not aware of all of the financing options available to them.

What this study indicates is that business owners are not fully aware of the tools available to them in times of monetary need. I'd like to do my part in correcting that - if you need money for new equipment, advertising, pay roll, cash flow or anything else and if traditional lending methods are not readily available, you do have another option:

Introducing the Merchant Cash Advance

Merchant cash advances are simple and they work like this: the cash advance provider purchases (advances you money for) a specified amount of your future credit card sales at a discount. Collection of the purchased credit is processed automatically through your credit card processing provider. The merchant cash advance provider receives a small, fixed and agreed upon percentage of your daily credit card sales. Since it is a set percentage the provider only gets paid when you do - I.E, when you're really busy your payments are larger and when business is slow your payments are much less. The best part is, you'll know exactly what the total cost of the funding will be upfront.

It's quick, easy, predictable and more affordable. For goodness sake, don't finance your next large project on a credit card--unless of course you want to earn a lot of mileage and can pay the balance off in full in a short amount of time!-- Learn more about cash advances and apply here.

The "I just switched" Blues

We've all made purchases we regret, eaten at restaurants we wish we hadn't, and gone to movies that have left us mourning the $10 that left our wallets in vain.... It happens. For those of you who have switched credit card processors in the past, I'm sure some of you kicked yourself for that decision as well. In fact, I was inspired to write this blog after speaking with a gentleman who recently switched to a 'no-name' company for a promised savings--that in hindsight was unrealistic to begin with--only to find out after two months of processing that he was actually paying more. A lot more.

Needless to say, he was P.O.ed

Unfortunately, I hear stories like this and worse all the time. As a business owner it's in your nature to want to cut costs, so don't blame yourself for falling for 'too good to be true' processing quotes. Just don't fall for the same trick twice! In the words of our former Commander in Chief:

"Fool me once, shame on you. Fool me twice...... uh, how does that go again?"

So after hearing so many stories of switches gone bad I decided to compile a list of things to help you avoid the "I just switched blues". I've even created an acronym so it's easy for you to remember:

1. Savings: If they're too good to be true, they probably are.

2. Ask for references or a letter of recommendation.

3. Verify the need for new equipment before buying.

4. Evaluate more than cost. For example, how is their technical support?

There you have it. The patented SAVE technique. As in, SAVE yourself the trouble of switching to a company that'll cause more harm than good. Instead, why not Contact us . We'll take great care in working with you.

I Was Told I Need New Equipment...Do I?

I've worked with many merchants over the years that feel a little jaded towards our industry for various reasons. The most common reason seems to be the line they've been fed by salespeople when making a switch to a new processing company: "To switch to us you're going to need new equipment" Have you heard this one before?

The fact of the matter is, if you own your equipment your new processing company should be able to download a software upgrade so that you can process seamlessly without updating your terminal.

I've also met with business owners who were led to the water by the promise of lower rates, only to find out that any savings on the processing were cancelled out by the lease payment they were more-or-less conned into agreeing to.

Don't let this be you! If you're shopping rates, give us a call. We would be thrilled to work with you.