Finance & Lending

 

04 24 2013

04 24 2013

Merchant Cash Advances on the Rise

Merchant cash advances gaining popularity

Merchant cash advances have been steadily increasing over the last five years. According to the Green Sheet, a new chapter is opening for the industry as analysts report the merchant cash advance market is expected to grow within the next several years. Green Sheet estimates that over the next few years alternative lending through merchant cash advances may reach $3 billion to $5 billion. The market is currently valued at $500 million to $700 million.

Alternative lenders provide critical options

recent article in Forbes interviewed several financing professionals and outlined how merchant cash advances have become more attractive to smaller organizations, now that costs have lessened and the alternative lending industry continues to grow.

Alternative lenders can provide crucial funding to small businesses that are turned down by banks. Some small business owners are even able to save their livelihood by taking out a merchant cash advance. Many small business owners experiencing trying times have used a merchant cash advance to turn their businesses around.

Merchant cash advances may help rescue businesses in need

The Forbes article profiles the tale of a restaurant owner in southern Vermont who underwent severe financial hardships after Hurricane Irene. After the storm struck the area the restaurant suffered from a slow season. To revive the business, the owner secured a business cash advance and was able to save the restaurant.

The restaurant owner was able to obtain the resources he needed even though traditional banks would not approve funding for his business. Since banks typically examine how long a company has been in business, the owner’s credit history, and how profitable the enterprise is likely to be, many smaller merchants cannot obtain approval for the money they need.

Alternative lending offers small business owners funding as the economy improves

For small business owners who desire to increase their revenue yet still face difficulties in getting approved for funding from banks, merchant cash advances are an increasingly popular option considering financing options sometimes remain tight for smaller operations. The slow but steady improvements in the national economy and consumer spending are likely to keep bolstering the alternative lending industry as more small-business owners seek to hire employees, lease more equipment, and expand their business.

Small business owners who are ready to expand their company and increase their revenue may want to contact National Funding about obtaining a merchant cash advance, working capital, or small business loan.

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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 government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan.  What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number.  We will also ask for your name, address, date of birth, and other information that will allow us to identify you.  We may also ask to see your driver’s license or other identifying documents.

 

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.