The Federal Reserve’s Senior Loan Officer Opinion Survey reported that 75% of the surveyed banks had made their lending standards more stringent for small businesses trying to obtain loans. As a result of lower sales and loss of credit lines and small business loan opportunities, small businesses are more apt to let go employees and cut benefits.

US Business Finance Corp has found that small businesses with Visa and MasterCard merchant accounts have been able to tap business cash advances quickly to handle short-term capital emergencies, inventory buying or meeting quarterly tax payments. Using bursts of business that various holidays bring, many merchants see their cash advances getting paid off sooner.

Merchant cash advances are alternative funding solutions where the finance company takes on the funding risk and does not demand securities or collateral. In 2008, the Small Business Administration (SBA) saw its 7(a) loan guarantee program back only 70% as many loans as in 2007. Many small businesses have found the SBA’s raised loan criteria to be just as stringent as the local banks and don’t see the need to wade through the additional paperwork only to get turned down for an SBA-backed loan.

Small businesses using personal credit card cash advances instead of merchant cash advances find themselves in a double-bind, paying high interest and lowering their credit scores in order to fund their business. The double bind initially serves to build the business and cash flow that banks want to see, but hinder later loan applications due to the lowered credit score.

With business cash advances, credit scores are not affected and payments are made sooner with the increased cash flow. Small businesses regularly use the alternative financing to set their business up for better terms with traditional financing sources.

If your small business is in need of a fast capital infusion for meeting payroll, inventory needs or cash emergencies – turn to the merchant cash advance specialists at US Business Finance Corp. Our experts are ready to help you with the fast application process and get your business back in top form.

While banks suffer from the repercussions of making loans to the wrong people, merchant cash advance companies continue to follow their business plan of providing cash advances to small and mid-sized businesses based on average monthly credit card sales. Without needing inexperienced financial meddling from Washington to make the situation “better”.

At a time in America’s economic history when credit is hard to obtain, even by solid business ventures that formerly had no problem accessing loans and lines of credit, merchant cash advances are providing the pressure relief valve on the capital markets. In an up or down economy, business goes on – just the pace of business adjusts to the opportunities and setbacks. Sometimes the “invisible hand” of the marketplace seems to be pushing and sometimes holding a business back.

US Business Finance Corp works with business owners to provide a capital infusion in a timely manner, only secured by promise of repayment from future MasterCard and Visa credit card sales. The amount of the business cash advance is derived from the average sales of the last several months. Differing from loans, the merchant cash advance company takes on the risk of the advance – the owner does not provide any personal or business assets or equity as collateral for this form of alternative business funding.

Merchant cash advances work as a pressure relief valve in several ways:
- the business gets a fast cash infusion to meet financial emergencies, inventory outlays or due invoices,

• the business owner does not take on additional risk to obtain the alternative funding,
• no fixed payments are due,
• no late penalties are ever charged, and
• no collection calls are ever placed.

Since the merchant cash advance is repaid with a small percent of the MasterCard and Visa credit card sales over the next six to nine months, there is no fixed payment schedule or amount. With no fixed payment schedule, the business owner can not be late making repayments – hence no late charges or collection calls!

If you are looking to improve you businesses cash flow and connect your business with a secure, trusted and readily available alternative business funding avenue, contact the small business pros at US Business Finance Corp. We explain the benefits your company receives and how easily it is to apply – and to repay. Don’t wait for the banks to fix their problems when your problems need fixing today!

With the Thanksgiving to New Years consumer spending season starting, the need to keep operating capital flush has many merchants feeling the pinch of a reduced or closed business line of credit. With time of the essence, the short qualification period of business cash advances appeals to many businesses who do not have the time available to go through the laborious traditional bank financing route.

With a merchant cash advance’s no need for collateral, this alternative financing route does not add additional liabilities to a company’s Balance Sheet in the fourth quarter. The lack of collateral is due to US Business Finance Corp taking on the lion’s share of the risk, a risk banks and traditional lending institutions do not accept.

Is this blind faith? Not really, US Business Finance Corp has the experience of working with owners and we know how hard they work to make their businesses a success. Traditional financing, in some ways, appears to be geared to businesses whose level and history of success leaves them in no need of financing. Typical businesses that are new or growing have a harder time meeting the criteria for bank loans.

With business cash advances, owners can use their future sales, based on their past track record as a way to raise capital. US Business Finance Corp’s company cash advance does not tie up your future sales as factoring does, but simply takes a certain percentage of the sale until the cash advance is repaid. Typically this period is from six to nine months.

If your line of credit has been closed or reduced, turn to the financing experts at US Business Finance to see how our merchant cash advances can turn your future sales into current capital.

For our clients who have a merchant cash advance on their future Visa and MasterCard credit card sales, there is a natural delay in the process, however that balances out with the fact the store owner received their funds on those sales sometimes months in advance!

If your bank is causing additional delays, which many are tempted to do in the current tight credit atmosphere, talk to them. If they have a hard time helping your business succeed, you may want to look for a more business-friendly bank. Banks that hold on to your funds for 24 or more extra hours are in effect creating a temporary 100% reserve on your funds! And you don’t receive the interest – they do.

Make sure you know who is holding, or holding up, your merchant credit card sales funding! If your funds take too long to find their way home or you are interested in the leverage a merchant cash advance can bring to your company, call the credit card processing services experts or the alternative financing team at US Business Finance Corp. We want to see you get as much of your credit card sales funds as possible and as quickly as possible.

The most common complaint US Business Finance Corp hears from merchants is that customer service is hard to get or not helpful. We have worked with merchants and over the years we know that helping business owners keep their companies running smoothly is the best way to run our customer service. Small problems like the terminal running out of tape, the terminal has just had a soft drink spilled on it, or a new employee needs a fast training can be big blocks to the merchant’s store turning a profit that day. Our customer service delights in solving problems, not causing them.

US Business Finance Corp takes finding merchants the best rates seriously. Our mission in helping your business succeed is to make sure you are taking home as much of your credit card sales volume as possible. We provide owner and employee training in order that your transactions go through correctly, you keep credits and charge backs to a minimum and that your employees never unwittingly make a mistake that negatively affects your merchant account file.

The second most common complaint we find is that other service providers make their monthly statements hard to understand. Fees may be tucked away so both the merchants and competing credit card processors have a hard time comparing processor services. US Business Finance Corp provides its merchants with clear statements – and our account experts will help you tear apart your bill to see what you are really being charged and how we can help you keep more of your money.

Lastly, our merchant credit card processing services have the additional benefit of connecting business owners to company cash advances. These cash advances are not loans, but a sale of future Visa and MasterCard sales. They carry no late charges, no fixed payments or fixed end payment date. The repayment plan is tied to a percentage of future Visa/MasterCard sales. As sales pick up, payoff happens sooner. If sales slow down, payment happens later.

Contact our credit card specialists today to see how we can help improve the profitability of your merchant credit card account. Whether desiring better merchant credit card account rates, better customer service or the ability to rely on business cash advances for any operating capital needs US Business Finance Corp is ready and able to help make your business operate more profitably.

Since your home, just like your investments, builds your retirement nest egg, your strategy should include how much extra you wish to pay on the balance during the period of the mortgage. As the baby boomer generation rolls into retirement age, the prospect of living on social security and retirement income has caused many to consider other sources of retirement funds. The biggest asset many find to leverage is their home. There are several methods to consider in order to access your home’s equity, the guide below helps you see how each real estate strategy may apply to your retirement situation.

Real estate strategies include:

• Paying for a smaller home with the sold home’s equity and possibly provide extra cash;
• Getting a reverse mortgage; and
• Moving to a region where cost of living is less.

A variation of these options is if you downsize, pay for your new home with the proceeds of your old home and then get a reverse mortgage. With both strategies, downsizing and reverse mortgage, building up equity in the house (and keeping up repairs) positions you for the best use of your asset. For figuring how much your home will be worth at retirement age, figure a 5.5% increase in value (barring situations where your neighborhood goes downhill). With the ups and downs in the housing industry, the home value increase is usually in the 5.5% to 6% range.

Consider a reverse mortgage. A reverse mortgage is a loan that allows homeowners to convert a portion of the equity in their home into cash. Unlike a traditional fixed or adjustable rate mortgage, a reverse mortgage has no monthly payments. Part of the cash goes to the owner and the rest goes to the lender as a prepayment of the interest. The cash the homeowner receives is usually around 60%. As long as one of the borrowers lives in the home, the home can not be sold by the lender or foreclosed. For HUD’s FHA loans, you must be 62 years of age or older and fully or mostly own a single-family residential house, an apartment, condominium or townhouse. Some manufactured homes may also meet the lenders standards.

The benefit for retirees is that the home’s equity largely determines home loan eligibility, not income. The homeowner does not have to move or make mortgage or rent payments. For an FHA backed loan, you must attend a counseling session to determine if this is the correct loan for your retirement situation. A benefit for retirees is that they can receive their cash as a lump sum or in monthly payments. Though these payments may affect your Supplemental Security Income and Medicaid payments, they are not taxable. The mortgages do not establish an escrow account for insurance and taxes – those remain the responsibility of the homeowner.

US Business Finance Corp helps homeowners who are downsizing or moving to increase the buying power of their income.  Our team of professionals will make sure that they grasp all your real estate needs and concerns before offering the financing options that best suit your needs. Contact our mortgage team to review your real estate financing solutions.