Over the past 6 – 12 months the small business lending community has seen a significant shift in lending programs to these ACH debit programs.  These programs are set up in a couple of different ways, but the common denominator is that they are all paid back by the lending company debiting payments directly out of the borrowers bank account on a daily basis.  Some companies do this by setting up a fixed daily payment that is agreed upon before the funds are sent out, while others agree to debit a fixed percentage of all deposits made into the bank account (also agreed upon upfront).

Unlike traditional lending programs, these are based heavily on the specific cash flow of the borrower’s business.  Daily payments are a blessing for some business owners and a curse for others.  Many business owners have trouble managing large monthly payments and having the lender debit their bank everyday is more manageable from a planning standpoint.  The payments are smaller and more frequent so it is easier to plan for them to be a part of everyday business, while a once a month payment can come at an inopportune time and late fees can accrue quickly.  The business owner is also generally in charge of making sure the payment is made, not the other way around.

Still, the daily payments are more difficult for other business owners who rely on their everyday cash flow to purchase inventory and manage bills, and a monthly payment is more palatable.  However, the lending community has shifted to this model because it puts the control in their hands, and they are likely to know about a problem more quickly than they would with a once a month payment schedule.  This type of lending has quickly replaced merchant cash advances as the primary business funding alternative to a traditional bank loan product.  It can work for a much broader audience and doesn’t require anything in regards to merchant accounts and merchant processing history.

In fact, many cash advance providers have begun offering a program in line with this need to better serve a wider variety of clients.  It has proven to be a productive program on both ends and many business owners who qualify for traditional loans or merchant cash advances are opting for these daily ach debit programs.  They are more difficult to qualify for than traditional cash advance programs, but many business owners like that it has nothing to do with their credit card processing.  Furthermore it allows those cash advance providers to reach businesses where credit cards are not a primary form of payment, which has opened the doors to increase the lending pool by a great margin.

If you’re a business owner and are interested in getting some money for your business, then inquire about our loan programs, particularly the ach debit based loans so that you too will have a chance to take advantage of the newest loan product available on the market today.

It’s no secret that the amount of lending going on in this country is down as compared to pre-recession levels.  The NY Times article I posted yesterday seeks to blame the lack of lending on the business owners of America.  They claim that applications are down due to a general fear among business owners in regards to taking on debt.  The claim further goes on to state that business owners aren’t concerned with growth right now, instead they are simply concerned with staying afloat.  While it should be every business owner’s goal to stay afloat, growing and staying afloat are not mutually exclusive and any business owner who is not constantly looking to grow and expand is deciding to throw in the towel.  So, we’re here to encourage you to think about growth and imagine how you can take advantage of the current state of things to grow your business instead of sustain it.

Others, like myself, believe that the lending markets are down due to excessive declines by the nation’s lending firms, banks, and credit unions.  And that it is these declines that have stopped business owners from applying for credit.  There is the stigma out there that no one has any money to lend and capital is simply not changing hands despite low interest rates.  While this may be true of traditional banks and other lenders, it is not true for entire financial community.  In fact, in the wake of the first recession, many companies sprouted up to offer loans and loan alternatives to small business owners.  The recession was viewed as an opportunity to help the struggling business owners.

That’s pretty much where we are now, with hundreds of independent lenders seeking out small businesses that require financing.  One of the major problems with this system is the box that each of these lenders prefers their clients fit into.  The target market is so specific that it’s difficult for business owners to apply for the right kind of financing with the right company.  Luckily there are many companies whose sole purpose is to match a lender and a borrower together so that they do not have to search for one another anymore.  This matching process involves many steps but the most important is the industry type.

Most lenders offer funds to only a handful of specific industry types and any other applicant is declined simply for the type of business they run.  While this is very common, it is also very undesirable.  We’ve launching a new industry specific lending program designed to make a realistic and fair offer to any applicant no matter the industry or size of the business.  This is not to say that there won’t be declines, as there will be.  This is to offer everyone a fair chance at some financing regardless of their industry type.  In addition, we’ve broadened our programs to create stronger offers for the industries that have historically excelled with this program.

We’re confident that we’ll be able to provide you with some form of financing or working capital regardless of your business type.  The one restriction we have still yet to get passed is the time in business filter.  We have not found a successful way to navigate the start up market yet, despite trying our best to offer everyone a chance.  Still, we are working tirelessly to create a funding product for start ups that we hope to be ready for the launch of 2012.  Check back occasionally for more updates regarding new funding programs we are rolling out.

Here’s a link to a nice article from businessweek.com about the current outlook for restaurants and other food service businesses for the future.

A big problem facing many small business owners right now is the severe lack of working capital available to them. Many people are experiencing this problem, but one industry in particular that is feeling the pain is the restaurant industry. Banks have always viewed restaurants as riskier investments than other types of business loans. This is due partly to the fact that restaurants change ownership more often other other industry types. A very high percentage of restaurants fail in the first year. Banks usually do not consider making loans to restaurants until they have made it through its third year. It is also widely known that restauranteurs do not always report all of their income, for tax purposes. It is easy to hide cash income because it can be spent on things like wages for employees, or payments to vendors. This makes it hard for banks to verify how much revenue a restaurant is actually bringing in.

The recession is adding to the problem for restaurants. When unemployment is high, and especially in a recessionary period, people look to cut unnecessary expenses out of their budgets. One of the first things to go is dining out. Restaurants have to run specials, cut prices, cut portions, and do anything else they can do to keep people coming in. This cuts into their revenue and their margins, which only increases the demand for business funding. Without being able to turn to banks for business loans, even the most credit worthy restauranteurs are looking into less traditional forms of business funding for their restaurants.

Restaurant Loans Available

Merchant cash advance providers made a great home for restaurant owners looking for quick access to business loans. Even though the programs they offer are technically not loans, they get the job done, making working capital quickly available without a lot of hoops to jump through. Restaurants make good candidates for business cash advances for many reasons, but one of the top reasons is the fact that they tend to have a high number of credit card transactions each month without much variation in processing volume. Merchant loans get repaid directly from credit card settlements, so this makes them easier to approve. Merchant cash advance underwriters are also able to overlook some of the credit issues common in small business owners who have struggled to get his or her business going. Business credit and personal credit are not weighed heavily into their calculations, although there are custom programs, with exceptionally low discount rates, available to the most credit worthy applicants.

Apply for Restaurant Funding Today!

Sure Payment Solutions is constantly running specials for restaurant owners looking for business funding. Check our Facebook page for our latest promotions. Getting a quote is as easy as calling us up to speak with an account representative, or by filling out a Get Started form by clicking the green button at the top-right of the page. There are never any costs or obligations to see what you qualify for, so what are you waiting for?

Restaurants are the heart and soul of small business in this country.  No matter where you go, you can always count on good food and a variety of options.  We’re located in New York City where, thanks to the extremely diverse community, we can pretty much choose to go out to eat anything we can imagine.  While this is not the case all over the country, in many places it is.  As a nation, we define ourselves based on our food.  Whether it’s soul food down south, thick crust pizza in Chicago, Seafood in San Francisco, or Texas BBQ we are all connected by our love of food.

Unfortunately, many restaurants are going through a particularly tough time right now.  The ever-increasing cost of oil and gasoline has forced many food vendors to raise their prices to their customers.  Higher cost of goods for restaurants means slimmer margins, increased prices, or reduced portion size.  All of these things have an ill effect on the business and can drive customers away.  4 years back when the recession was fresh, many restaurants changed their menus and raised prices in order to maintain certain profit margins, while others lowered their prices through daily specials to drive more traffic.  No matter the method, it was clear that restaurants were hurting.  Now, they are hurting again, for much the same reason.

Health concerns add to the probability that consumers will choose to eat at home instead of out as many people are focused on counting calories, omitting wheat and/or dairy, and eating out while trying to stick to a diet can be difficult.  And so, restaurants are struggling to make ends meet and keep their doors open.  Luckily, while financing is difficult to secure for most businesses, restaurants have an advantage.  The consistent and predictable month over month sales of most restaurants make them prime candidates for our funding services.  Restaurant business funding takes many forms, but particularly the merchant cash advance and business loan products we offer tend to be perfect fits for most restauranteurs.  They are fairly short term, reasonably priced, can be secured quickly and used for anything you need.

Restaurant Business Funding Available

Restaurant funding is typically used for marketing, renovations, new menus, or just for some working capital.  Many restaurants tend to have a busy season and a slow season as most areas of the country attract tourism during certain parts of the year.  And so many businesses look for funding to push them through the slow season, and that’s where we come in.  Our funding services require no personal guarantee, no collateral, and no late or early payment penalties.  In fact, there’s no fixed term at all.  Getting started is easy, here’s a link to our get started form.  If you are a restaurant owner interested in getting funds, simply fill out the form and submit it to our account management team who will reach out asap to discuss the available options.  You can also call us today at (800) 991-3917.

We’re here to make sure the great tradition of food excellence enjoyed as Americans never falters.