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.

There’s a lot of talk in the news and around the world regarding the state of the global economy.  Many people trace back the problems to the US mortgage crisis, but its difficult to ignore the debt problems and commodity issues around the world.  At the end of the day, money is tight for 99.9% of the world and there’s just no easy solution that can be mutually agreed upon.  Analysts, strategists, and financial planners are doing their best to predict where this winding road will go in enough time to steer the ship in a more favorable direction, but the situation we are currently in is unlike any other in history and we are all learning as we go.

From our perspective, we see a lot of small businesses struggling to get by.  Most suppliers and vendors have eliminated credit terms and raised prices to maintain certain standards in their own businesses and this has put a squeeze on many business owners.  In addition, consumer spending continues to walk a fine line.  Many business owners are also hesitant to take on any debt during this time for fear that it could create a cash flow issue somewhere down the road, and it is this concern that I’m most inclined to address.  Fear is a powerful motivator, but it can also paralyze us from acting.

While it may seem like wisdom to be cautious of entering into a financing agreement, the way the economy grows is through small business expansion and lending.  You may be able to maintain the status quo for a while, but eventually improvements will need to be made, renovations perhaps, and its important to continue to update product lines and services to better serve your clients.  All of these things cost money and unless you have a surplus laying around, you will probably need financing at some point in the next few years.

As is understandable, lending markets continue to tighten up and for many companies, existing, performing accounts are the only ones getting money anymore.  Securing a reliable business funding partnership is almost more important than the financing itself.  When the economy goes bad, history, and comfort go a long way towards rebuilding, which is why it is so important to establish a funding partnership now, before the economy gets worse, or before lending availability dries up.  So even if the need for funding is not immediately present, it may be a good idea to secure a partnership with a lender now so that when you do have need, you will have a place to turn for quick and easy funding.

There are already a number of lenders in the market who are not accepting new applications and are only servicing existing clients, and they are the businesses that are most likely to survive any economic turmoil thanks to the partnership.  We have excellent loyalty programs at Sure Payment Solutions and work tirelessly for our existing clients as much as we do to create new relationships.  So don’t hesitate to establish a partnership with us, it promises to be mutually beneficial for years to come as we weather the economic storm together.

It’s hard to believe its that time of year again, but let’s face it: Summer is over, fall is just around the corner, and that means we’ve got a plethora of holidays coming up and business owners are looking forward to a strong end to what has been a tough year for many people.  And so now is the time to stock up on inventory, make some small changes to ensure you’re products and services will stand out above the rest, and do some extra advertising.  Of course, all of these things cost money, and often at this time of the year, business owners don’t have a lot of extra cash laying around having just finished up August (an infamously slow month for most businesses).

Vacations are over, and its back to the drawing board preparing for a strong end of the year run, looking ahead to black friday and the holiday season that follows.  For many businesses, the holidays begin now as we look forward to Halloween and Thanksgiving as well as the December holidays.  We know financing can take longer than expected to secure, so now is the time to look for that extra bit of cash you need to make a strong push towards the end of the year.  Our funding programs are ideal as they are short-term, inexpensive solutions that will help you bolster your cash flow today without crippling you as you go through the holidays.

One of the nicest benefits of our funding solutions is that there’s no limit to how you use your cash.  Not only do you have the freedom to choose how to allocate your funding proceeds, but you aren’t even responsible for putting together a specific business plan to that effect.  Many business owners are fearful of taking on any debt or financing right now in light of the shaky economic conditions, but fear is the death of capitalism and when fear paralyzes us from acting in our own best interest, we have already decided to give up.  A small amount of funding can go a long way if you spend it wisely.  Renovation, new product lines, new signage, and new marketing strategies are all affordable, wise uses for funding that should help improve your business enough that the cost of the funding is negligible.

Here at Sure Payment Solutions, we specialize in retail, restaurant, and other tier 1 merchants.  We’re making a push towards the holiday season with our eyes on helping as many businesses as possible get through this hectic time of year with the funds needed to make the best of it.  Our funding specialists are standing by the help place working capital for you today.  Apply now, and you’ll be sure to have some cash lined up just in time for the holiday season.  Let’s make it a strong finish to this turbulent 2011 together.

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.

A working capital loan is a great idea for any small to midsize business looking for a little help with cash flow.  Working capital loans are usually short term loans used to pay for inventory or current payables such as payroll or taxes.  If you lack the personal or business credit to qualify for a working capital loan from a bank, a business cash advance can be a great alternative.  Like a working capital loan, they are usually short term fixes.  The term can range anywhere from 6 – 18 months.  Business cash advances also do not require that you have a specific use in mind for the funds.  The funds can be used however you need, whether it’s payroll, taxes, inventory, expansion, marketing, or just something to help get through a slow period.

It’s easy to qualify for a business cash advance as well.  The basic requirements are that you’ve been open for business for at least 3 months, you accept credit cards as a form of payment from your customers, and you’re not in open bankruptcy or considering filing for bankruptcy.  A business cash advance can make up to $500,000 in working capital available, depending on the business’s total credit card volume.  Funds are also generally available within 5 – 7 business days of the time you apply.  This form of business funding has become increasingly popular since it’s birth in the late 1990s with a number of cash advance providers and sales offices now offering the product at lower and lower rates.  Business cash advances have truly become a viable and even sought after alternative to traditional lending.