Money for nothing, your chicks for free was a famous song by Dire Straits. And speaking of Dire Straits, it’s where many small business owners find themselves in today’s economy because they do not have the same access to capital as larger corporations.
What is the main difference between big businesses who were once small (i.e. Ben and Jerry, AOL etc.) and those that stayed small- the bigger ones had availability of working capital to grow and preserve themselves through hard times.
How do many larger corporations get working capital? Well, it might surprise you but frequently it’s not from profits, it’s from a process called Accounts Receivable Factoring. Factoring, for larger corporations is where large Financial Companies (Factors) purchase the accounts receivables of these larger corporations- take the responsibility for collecting the receivables, and give the corporations cash on a discounted basis.
Factoring is not a business loan. For example, a Factor Company will buy $10,000,000 million worth of receivables and pay $9,500,000 to the corporation- which will then use that money to buy inventory, expand, pay off debts or however they choose to leverage the money received. The Factor’s profits is determined by the difference between the value of the receivables and what they paid for them
Its how big companies stay big- cash flow. And generally how small companies stay small- lack of sources for cash flow!
Unfortunately, for small businesses that are mostly retail, the predominant ways to get working capital when needed are borrowing from friends or family, mortgaging their personal house, using personal credit cards, getting a government business loan (small business loan) or getting a bank loan.
Since banks or other traditional lending sources reject on average 92% of business loans small business owners apply for, where do you go? And to get a business loan unsecured is dreaming these days. What to do if you find yourself in Dire Straits, or just need working capital to take advantage of opportunities.
Fortunately, there is an innovative working capital solution for small business owners- it’s called a business creditcard cash advance or RapidCash by Quickcash4biz.com.
RapidCash works with a merchant account and credit card sales. It lets a business receive cash today in exchange for a portion of future credit card sales. The agreements vary, but generally stipulate that a small percentage from each future Visa/MasterCard credit card transaction is used to repay the obligation. (It's somewhat similar to 'factoring' in AR).
One advantage to this type of getting needed cash flow is that the business can get capital very quickly compared to traditional borrowing (such as a business loan, business grant, or a business line of credit). From the perspective of Quickcash4biz, it's low risk so that lets us get funds to the business quicker. Also, this type of providing cash flow usually does not depend on the borrower's credit history as traditional types of lending do.
Other advantages include on application fee, no personal guarantee required, no collateral, flexibility, and no restrictions on the use of funds. The owner’s personal credit score is not an issue. Usually approval can occur in 24-28 hours and the funds arrive within 5-10 days.
Now, banks, even when lending rules were very liberal would not deliberately do a bad business credit loan. And neither will Quickcash4biz- it’s just that our requirements are much less stringent- that is why RapidCash has a very high approval rate. There are some basic rules and qualifications that apply to get from $3,000 to $300,000 in working capital cash per location..
§ You must have over $3,000 a month in credit card sales
§ You must be in business at least 6 months
§ You must not have any unresolved bankruptcies
§ You must have a lease on the space you occupy
§ Bad credit is not an automatic disqualifier
For more information or to apply, visit www.quickcash4biz.com
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