Can your small business survive the great recession? Yes you can! Powerful words, coming from Obama during his presidential campaign. And with his Small Business Rescue Plan, Barack Obama puts his administration’s money where his mouth is. Here’s how these initiatives will benefit your small business:

1. Tax Cuts will come as music to the ears of small business owners looking to squeeze as much as they can from every dollar. Barack Obama intends to cut taxes for small businesses earning less than $250,000 after expenses. Self-employed filers such as freelance consultants can also count on a break from Uncle Sam. And to reward innovative companies, the Obama administration plans to exempt startups from paying the capital gains tax. These tax incentives are designed to encourage entrepreneurship, which will be the key to this nation’s economic recovery. Reinvest your tax savings in your business, and you might find new sources of revenue.  If you’re not offering your products and services online, you’re missing out on a huge business opportunity. Setting up your storefront is easier than you think–service providers offer e-commerce solutions including shopping cart and credit card processing capabilities.
2. Low Interest Small Business Loans could make the credit crunch a distant memory for small businesses. Obama intends to put five billion dollars towards Small Business Loans administered by the Small Business Administration (SBA.) These loans offer a deal that can’t be beat on the open market: interest rates capped at four percent and thirty-year repayment terms. The SBA’s loan program targets Main Street. The small business loan program is similar to a business cash advance,  making more funds available to support everything from working capital to capital expenses. Use the money to stock your inventory, revamp your website design, search engine marketing or buy new equipment.
3. R&D Investment should take off under Obama, specifically in the areas of clean tech, alternative energy and health care information systems. The plan is to invest $150 billion over ten years on clean energy initiatives, $10 billion a year for five years on health-related IT development, and an unspecified amount on other environmental and biological research. If your small business supports scientific or technical innovation, you could be eligible for a federal contract. IT Professionals, database analysts, engineers, lab researchers, and field scientists are just some of the professionals who could see an expanded market for their services in the coming years. Freelance contractors may even build their solo operations into a research lab, with funding and loans for hiring scientists as well as facility and office equipment leasing.
4. Fair Trade policies will help to level the playing field for U.S. small businesses struggling to compete with companies sourcing from abroad. Obama plans to increase environmental and labor protections, raising the standards by which goods are produced internationally. Once everyone has to pay a fair wage and uphold environmental safety standards, U.S. small businesses may see the gap between their production costs and offshore companies’ costs begin to narrow. Global business is a fact of economic life, even for local small businesses. Establishing an internet presence using online sites like Tradeseam can help your business compete abroad too. Online solutions include services such as search engine optimization to help your professional website design get noticed on the world wide web.
5. Health Care Expenses may lose their standing as the #1 biggest burden for small businesses. President Obama’s plan offers a fifty percent tax credit to offset rising health care premium costs. Adding this carrot allows Obama to remove the stick: small businesses will no longer be required to provide health care benefits. Saving on health care can help your small business invest in essential overhead costs such as voip, call centers, and more.

President Barack Obama’s policies could provide your small business with a lifeline, freeing up much-needed working capital for stocking up on  inventory, product development, R&D, and marketing. Political rhetoric is nice. Executive policies that help your small business stay competitive in today’s merciless market are priceless.

Commercial loans, and in particular small business loans, have been one of the casualties of the financial crisis. In this environment, small business owners and merchants are finding it important to understand the potential for using business cash advance also known as credit card cash advance as a substitute for small business loans and other traditional sources of financing such as sales financing, factoring services, equipment leasing etc. Not surprisingly, business cash advance has been growing as other financing alternatives have become scarce.

Business cash advance involves selling credit card receivables at a discount, as a means of getting cash in exchange for those receivables more quickly. In this sense, it is an exchange of money for time–the business does not get the full amount of the receivables, but it gets an immediate cash infusion that can be used as working capital or for business expansion. Business cash advance can make the difference for businesses that are booking healthy credit card receipts, but won’t get paid on credit card sales for several weeks. When the business has to make payroll and pay suppliers week-to-week in order to keep making those sales, some form of short-term credit is required. Merchant cash advance can be the answer.

Three Ways to Get More out of Business Cash Advance

Not surprisingly, cash advance for small business is a growing industry. The business grew by 50 percent in 2009, reaching a total value of $700 million. Not only are more businesses using merchant cash advance, but managers are finding ways to get more out of this funding source. The following are three examples of how a small business could get more and better use out of credit card cash advance:

1. Manage cash flow timing. Where there is a mismatch in timing between the cost of doing business and the receipt of revenues from that business, credit card business cash advance can bring the two more in synch.
2. Use opportunity cost to measure payback. While small business cash advance may be more expensive than a typical small business loan, the latter is not a valid benchmark when commercial loans aren’t available. Instead, managers should use opportunity cost to compare with the cost of a merchant cash advance.
3. Shop around. Even though business cash advance can be expensive, small business owners and merchants can minimize the cost by using internet resources to shop around for competitive terms.

One of the advantages a small business has is flexibility. By turning to business cash advance in the absence of other financing sources such as government grants and small business loans, small business owners and merchants can use that flexibility to weather the great recession.

If slow sales, piling debt and cash flow crunch are weighing down your small business, you have good reason to worry. Your small business would not be the first to become a victim of this economic recession. Hardly heartening news, but true. The point is, is this where you choose to give up or are you willing to give it all you have?

The last year has seen the rise of an unconventional finance source – business cash advance. The business cash advance or merchant cash advance (MCA) industry is relatively new, and it has pulled many small businesses out of the clutches of the global crisis. Though the lending rates are higher than small business loans, business cash advances do not need  a business plan, guarantees, liens, or collateral. Business cash advances range from $3,000 to $300,000 with the majority of businesses receiving $20,000 to $30,000.

Small businesses also benefit from…

• NO application fees
• NO out-of-pocket expenses
• NO fixed monthly payments

Merchant Cash Advance is an unsecured commercial loan. The prerequisite to getting approved is a minimum record of credit card sales receivables for 1 year and having been in business for atleast 2 years. Good credit scores are preferable, but a bad credit score does not disqualify you for the advance. The business cash advance lender purchases a percentage (10%-25%) of your future credit card receivables for a fixed flat rate. The business cash advance company gets paid back immediately following the batch process that occurs regularly during credit card processing. The credit card receipts are sent electronically from the merchants credit card terminals to the credit card processors back office system, which is programmed to perform split processing where a percentage of the payment is sent to the merchant’s bank account and a percentage to the merchant cash advance company’s bank account until the payback amount is reached. The duration of the merchant cash advance can vary from 6-12 months or longer if you have worked with the business cash advance lender before.

The factors that really work for you with a business cash advance are – quick approval cycle with minimum paperwork; amount credited into your account within 2-3 days or a week max; no collateral or personal guarantors; no fixed installment dates; no late fees.

You get the money when you need it most, with no questions asked. You can use it as working capital, to fund expansion, an acquisition, pay off debts, anything and everything you plan to get your business out of the doldrums.

In summary, work with reputed business cash advance companies to give your business a fair chance as we emerge from this deep recession. Make sure you review the MCA contract carefully and understand the fine print to avoid any surprises.

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.

People with vision and capability often make for frustrated employees. Working for another individual or company shackles their potential to achieve more than the ordinary. These people are motivated by their dreams and ambitions to start their own business. It is tough going initially but they can look forward to steady returns from their self-made business in the future years.

Starting and establishing a business today is much easier and viable than a few decades back. For starters, businesses can choose from a variety of small business loans for starting a business. While the recession has made it tougher for small businesses to get loans from banks and other traditional sources, there are other options such as a business cash advance for merchants that can borrow against future credit card receipts. Business Cash Advance also known as merchant cash advance is an unsecured cash advance forwarded to the business in exchange for a cut in future credit card sales till the whole amount plus interest is recovered.

Small business owners can also outsource non-core functions of the business without investing in in-house expertise. Outsourcing  payroll or call center related services empower businesses by incorporating efficiency into processes without incurring the cost of infrastructure and adding additional headcount. For instance, a small medical practice can increase its income by over 40% and improve its revenue management cycle by partnering with outsourced medical billing companies.

The internet is another cost-effective tool in the hands of small business owners. A small business can take the help of professional website designers and developers to design a website to establish its online presence. Effective internet marketing campaigns developed by reputed online marketing firms can drive qualified traffic to your website. E-commerce solutions enable businesses to sell products on the internet and capture an online customer segment that continues to grow in size.

All these facilities enable small business owners to focus on the core functions of the business, accelerating its growth and profits. However, small businesses also need to innovate and evolve continuously to maintain their competitive edge and retain profitable customers.

Small businesses in America sustained more than 50% of the private work force of the country. The recession pretty much knocked the wind out of the sails of countless small businesses and their employees. The situation worsened with banks and traditional finance sources hiking up interest rates and even refusing loans to struggling business parties.

So, does this slump mark the end of the road for small business players? Will the market be the exclusive playground of big industry giants? Absolutely not. The business world is all about highs and lows, survival, and evolution of new players. While the recession has traditional finance sources retreating into their self-protective shells, business cash advance providers have risen to the occasion to support small businesses.

Why business cash advance and not small business loans?

For starters, business cash advance companies, unlike their banking peers, focus on the future of the business rather than its past. They buy future credit card sales of the business for the advanced amount.

The following features highlight the benefits of business cash advance ( also known as merchant cash advance) over commercial loans:

• Approval in 24 hours or less
• Minimal documentation
• High approval rate (almost 90%)
• Quick transfer of funds (3 days to 1 week)
• Low credit scores not a problem
• Collaterals not required
• Performance based recovery

With business cash advance, business owners are freed from the stress of making enough to pay fixed installments or risk losing collaterals. The earnings of business cash advance providers ride on the sales of the business. If the business does well in sales, the provider earns more. If not, the provider earns less too. No pressure.

The merchant cash advance industry is maturing and organizations such as the North American Merchant Advance Association (NAMAA) are trying to regulate the industry by weeding out unsavory players. While small business owners should consider merchant cash advance for their business, they must examine the provider’s services and rates carefully to ensure the provider is not cashing in on their need.