As all of you know the financial world as we knew it has changed forever. Absolutely there still exists and always will exist a variety of financial products and services to serve consumers and businesses. However, the way banks and financial institutions lend money to businesses and consumers is changing dramatically. Gone are the days of ridiculously high amounts of leverage employed by banks and amazingly excessive levels of risk assumed. If you ever felt it was tough to obtain a loan or LOC from a bank before well you haven’t seen anything yet.
About 9 million existing businesses per year apply for funds from a bank and are denied. One of the only options an existing business had to this point to obtain funds was a merchant cash advance. Many merchant cash advance companies exist and may be willing to advance your business cash based on your credit card sales activity. The problem with these cash advances is that they tend to be very expensive and burdensome for a business. These companies take advantage of customers that are in need of an advance. Up until recently no competition existed for these cash advances that presented a very reasonable cost of financing option.