There is no question that over the last two years the world has teetered on the brink of economic collapse. Who would have predicted that big international banks would fail and that one day there would be the very real prospect of no money coming out of our high street cash machines. There are some who believe that this is actually a long needed flushing out of the weak businesses and that the ones that are left will be in good shape for future growth. Whether you believe that or not, every business needs cash flows to survive in some form or another. It could be to fund further expansion or to help keep the cash flow stable.

So in today`s tight markets is it the small business that is suffering more than anyone else? There are also many new reluctant entrepreneurs who having been the victims of redundancy are launching start-ups that they all dreamt about but never had the momentum to get on and do it. But all these scenarios need seed money and with banks getting really selective about who they lend money too, what is the framework you need for successful small business loans applications?

The bottom line is that small business lenders really only want two things:

1.   To be sure that the business can repay the loan
2.   You have sufficient personal collateral to repay it if the business fails to do so.

You on the other hand have a lot more things to worry about:

1.  Who do you pick as a small business lender? As hard as this might seem, you need to cherry pick your lender carefully. You want commercial lending companies who really understand your business sector and can provide continuing commercial help and guidance.
2.  You need a rock solid business plan. It must be factually realistic and not based on finger in the air projections. However hard this may seem to be, it will come back to haunt you if you have not been as realistic as possible with your turnover and profitability. It must be as thorough as possible with minimal margin for error.
3.  You need to clearly show your knowledge and expertise in your chosen sector. Be as aggressive as you like here, after all this is your comfort zone and you can really score points if you can clearly demonstrate that you know your stuff.
4.  Research you competition and understand what you are up against, because one thing is for sure, the small business lender, if you have chosen correctly will have done their homework too.
5.  Lastly, make sure that you ask for enough to give your business a chance.

The commercial world offers all of us countless opportunities to be successful; all we need is the right idea and a sound business plan. Even working from home can prove to be a success and free cash is just one example of how a good idea can pay dividends.

Every business has been affected by the recession. As 2009 ends and 2010 commences, the situation is improving gradually. The road that lies ahead is still a tightrope for businesses balancing low finances, productivity and profit margins. Small businesses, that even in a good time have limited cash flow, have been dealt a crushing blow.

But as they say, every cloud has a silver lining. For small businesses, that lining is business cash advance. Business cash advance or merchant cash advance (MCA) is a viable financing option that any business with a fairly good credit card sales record can take advantage of in this economy. Small Business loans and bank loans have become an impossible contrivance for small business owners on shaky ground. An immediate need for funds, a possibly bad credit score, low approval rates, an indefinite progress plan, the fear of losing collateral, stringent rules and high interest rates are making more and more business owners turn from commercial loans to business cash advance.

MCA is a “no questions asked” unsecured advance of money that is more a purchase than a loan. An MCA provider purchases a percentage of future credit card sales for an amount of money that is advanced to business owners to use as they please. Approval rates are high. The advance is transferred to the owner’s account in 2-3 days. There is minimal paperwork and collaterals are not required. The business cash advance companies  recover the money by getting a cut of the monthly credit card sales, be it high or low.

Thanks to the recession, the relatively high interest rates of a MCA have become comparable to the hiked up rates now charged by banks. Heck, if you have to pay the same why not go for the option that invests in your future rather than delving into your past.

MCA providers have risen as the heroes of the present time, keeping businesses afloat and helping rebuild the economy of the country. MCA industry leaders are working together to regulate business practices to weed out unsavory players and ensure the continued growth and popularity of business cash advance.

The recession has brought many small and medium sized business merchants on the brink of a breakdown. With the constant anxiety of losing collaterals and regional banks closing their doors, it is no wonder that business owners are worried sick. However, small business owners need not give up hope yet. Business cash advance can help you pull your business out of the doldrums.

A win-win bargain

Merchant cash advance (MCA) is simple and fast to obtain and does not need the security of good credit scores or collaterals. The winning card for MCA approval is good credit card sales volume. MCA providers pay for a share of the business’ future credit card sales with the advanced amount. They recover it with interest by receiving a cut of the credit card sales every month. This is an ideal partnership as the MCA provider shares in the highs and lows of the business. No fixed installments. No collaterals. What could be better?

 Business Cash Advance gaining momentum

Business cash advance is gaining popularity in the recessional environment as an unconventional but ideal finance source, and has already crossed the $10 billion mark in funding. Organizations such as NAMAA (North American Merchant Advance Association) are trying to standardize industry practices across merchant cash advance companies to ensure MCA remains a preferred choice for businesses even after the market picks up.

Interest rates comparable to current small business loan rates

The only fly in the soup for businesses opting for business cash advance is the high interest rates. However, banks have hiked up their commercial loan rates dramatically in the recent times, inadvertently pushing more business towards merchant cash advance providers. If you have to pay the same anyway, why not go for the option that promises quick financing, flexibility, no securities, no explanations and places faith in your future prosperity.

The economic slump has hit small businesses. True. But being hit does not compel you to stay down. Avail business cash advance to infuse life back into your business and realize your ambitions.

Every day we read media reports of corporate insolvencies, bankruptcy and spiraling costs. Small businesses are feeling the pinch as the recession has slashed customer spending drastically. Whether a small business has B2B or B2C dealings, it should be watchful of signs that imply customers are facing financial deficit. The rising unemployment is making a bad situation worse for small businesses as customers are left with no disposable income.

Most small businesses have incorporated credit card processing into their workplaces. Customers can easily use credit cards to purchase items they may never be able to pay for. If customers insist on using credit cards, it may be because they are hard on cash. If they call up credit card agencies to dispute genuine purchases, it’s time to stop doing business with them.

Small B2B businesses need to be especially alert for signs of client companies nearing bankruptcy. Problems in large companies usually get media attention and are publicized. Falling stock prices are another bad omen. If the clients are smaller companies, the business should be wary of customers requesting extension of credit repeatedly and delaying payments. Talking to sales people, industry peers, and collection agents also gives an idea of the company’s financial status. The business should keep a tight control of the receivables and recover payments within 30-45 days to avoid getting pennies for a dollar in bankruptcy settlements.

Small businesses can have a tough job collecting bills. Customers may try to delay payments to maintain cash flow for their own business. Some may even disclaim payments. Small businesses do not have the margin to survive delayed payments for long. Incoming payments are the lifeblood of small businesses, used to pay suppliers and run daily operations. Collection agencies can be a great help here as they are effective in collecting a good percentage of debts on time, without hurting the customer relationship.

Small businesses should keep a tab on customer’s financial standing so that they can take immediate steps to minimize losses. Failed payments can drain the cash flow and derail the business entirely.