Strike The Best Deal With An Unsecured Cash Advance Distribution Source : ArriveNet Editorials Date : Wednesday - February 28, 2007 Christine Macguire (ArriveNet Editorials - Feb 28, 2007) -- Healthy cash flow is the key to the growth and success of all striving small businesses. The most important aspect in a business, the capital, is totally responsible for its growth and stability. The proper flow of funds ease the financing process and assists the small business owner to properly plan strategies to develop and expand his or her venture. But, maintaining a steady cash flow turns out to be the primary challenge faced by most small business owners. Business loans have traditionally been the saviors of most small business entrepreneurs. Small business loans are one of the best opportunities for fulfilling the financial needs of any business. Such loans not only assist in setting up of new businesses but also help for the expansion or meeting the increasing recurring expenses that follows an expansion of a business. Most lending companies focus much on the business start-ups and provide loans for getting the business up and running. But at times it is really difficult to acquire funds once you are going through a financial crunch and require immediate cash for settling your transactions. Even if you do find institutions that care to offer loans under such situation, most of the time they would require a huge collateral. Well, unsecured business loans are a smart alternative for such situations. As the name itself suggests, an unsecured business loan does not require any security against the loan amount. The borrower requires no collateral against the loan. Only the integrity or credit record of the borrower backs unsecured business loans. The process of acquiring unsecured loans is easy for business owners, as the process requires hardly any verification of financial documents or formal proposals. But, good applications for unsecured small business loans would usually include goals, purpose of borrowing the money, and the amount needed. Unsecured business loans are usually provided at higher rate of interest as no collateral is put against the loan. You can either choose to pay a fixed interest rate or variable interest rate based on the borrowed amount. The credit score of the borrower usually plays a vital role for the lender to decide the terms of the loan. Based on the credit score and a few other factors the lender decides on the risk element involved in lending the money to the business owner and accordingly decides whether to lend or not or what should be the interest rate. The higher the credit score the better it is, as it helps you to acquire a larger loan amount for a lower interest rate. A typical unsecured business cash advance (www.advance4merchants.com) or unsecured business loan is repaid from future sales transactions through credit card purchases. There is no specific repayment schedule, repayment occurs automatically and follows your business revenue flow. Unsecured business loans have gained huge popularity in the market and now are one of the mainstream resources in small business funding sector. But be sure to approach the proper lending institution, so that you don't get trapped. Gather, as much information as possible and consult with your peers while borrowing a unsecured loan for the advancement of your business.
	Focus on Initial Interest Rate May Be Adversely Affecting Small Business Financing Decisions Recent Survey Indicates Gaps in Entrepreneurs' Understanding of Credit Card Payments SCARSDALE, NY -- (MARKET WIRE) -- March 20, 2007 -- According to the results of an early 2007 survey of small business owners, 61 percent entered this year with increased optimism regarding the health of the economy and their 2007 business outlook. Survey respondents anticipate increased business expenditures and plan to use credit cards to make these purchases. The survey results also indicate that half of small business owners are unaware of the potential costs of financing their businesses with credit cards. As a result, they are not using other products that could be more beneficial for their business. This research report is the second in a series titled "Capital Access Network Small Business Barometer" and was commissioned by New York-based Capital Access Network, Inc. (CAN). Survey Highlights The survey was conducted nationally among small business operators who accept credit cards as a form of payment. It revealed compelling data about entrepreneurs' outlook on spending as well as a lack of understanding regarding minimum monthly credit card payments and cumulative long-term costs. -- The majority of business owners (61 percent) are more optimistic about the economy and the overall success of their businesses in 2007. -- As a result, 61 percent plan to increase their overall business expenditures this year, with 64 percent planning to begin using, or increase usage, of their credit cards for business expenditures in 2007. -- However, only 50 percent understood the actual long-term costs of a $5,000 credit card charge if only minimum payments over a five-year period are made. Growing Awareness of Alternative Sources of Cash In addition to credit card usage and spending priorities, this survey asked respondents to identify preferred methods for acquiring the capital needed to maintain and grow their businesses. Topping the list was a traditional, collateral-based bank loan, (57 percent) followed by obtaining an advance on future sales (23 percent), also known as a Merchant Cash Advance. Other methods, including second mortgages, loans from friends and family and loans co-signed by friends and family, were the least appealing choices, accounting for only 20 percent of responses. Merchant Cash Advances enable a merchant to employ their future credit card sales, an asset unrecognized by most traditional financial institutions, to raise working capital. The survey responses illustrate an increased market awareness for Merchant Cash Advances (30 percent) and 16 percent of those responders had, in fact, obtained a Merchant Cash Advance previously. However, the small business market is still not fully educated on alternative funding products, with many small businesses still unaware that they can sell their future credit card sales in exchange for working capital. Generally, Merchant Cash Advance providers purchase fixed amounts of future credit card sales at a discount. Collection of the purchased credit card sales occurs automatically through the merchant's credit card processor. The Merchant Cash Advance provider receives a fixed, predetermined percentage from each credit card sale made to its customers. Since it is sent a set percentage and not a fixed dollar amount, the provider only gets paid when the business does, helping manage cash flow throughout the year. No fixed payments or application fees apply. Unlike other financing products, the owner knows upfront exactly what the total cost of the funding will be -- it will never exceed the amount of the credit card receivables sold.