Finance & Lending

 

11 07 2014

The Federal Reserve Bond Buying Program Has Ended On A Positive Note

11 07 2014

Fed Bond Buying Ends on Positive Outlook

The U.S. Federal Reserve has finally ended its unprecedented bond buying program, thanks in part to a positive outlook for the U.S. economy – a good sign for owners looking into operating capital loans.

“On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing,” the Board of Governors of the Federal Reserve System stated in a recent media release. “Household spending is rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Inflation has continued to run below the committee’s longer-run objective. Market-based measures of inflation compensation have declined somewhat; survey-based measures of longer-term inflation expectations have remained stable.”

While some economic experts were worried regarding the ending of the Fed’s quantitative easing program, others were assured by the central bank’s confident tone.

“In short, [the Fed’s statement was] largely as expected, but, if anything, a more positive tone, at least on the labor market,” Jim O’Sullivan of High Frequency Economics was quoted as saying by The Wall Street Journal. “We expect tightening will start by June 2015, but, of course, that will depend on the data.  For now, there is no urgency for officials to use the statement to signal an imminent move.”

For small business owners, the question now may be whether obtaining business loans will become more expensive. Some expect interest rates to increase significantly following the end of the Fed’s bond buying program.

However, rates remain accommodative. Additionally, small business owners have plenty of alternatives to traditional loans when it comes to financing their operations.

Alternatives give small business owners greater choice

One popular substitute for a more traditional business loan is a merchant cash advance. With this option, borrowers can receive up to $250,000 with no collateral required, no fixed payments and no hidden fees or upfront costs.

For many small business owners, merchant cash advances are preferable thanks to their unique repayment terms. Owners receive the cash they need for a fixed dollar amount of their future credit card sales. This means that at the end of every day, an automated process retrieves a small fixed percentage of daily credit card transactions until the advance is paid off.

In this way, businesses only repay their loan when they get paid, making it far easier to handle debt obligations.

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Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the United States Government fight terrorism and money laundering, Federal law requires us to obtain, verify, and record information that identifies each person that opens an account. What this means for you: when you open an account, we will ask for your name, a street address, date of birth, and an identification number, such as a Social Security number, that Federal law requires us to obtain. We may also ask to see your driver's license or other identifying documents that will allow us to identify you.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.