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| Merchant Cash Advances Enable Merchants to Obtain Thousands of Dollars |
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It had always been John Smith's dream to open his own restaurant in Montreal. But to run a business properly, one needs to be capitalized properly-- there is equipment to buy, staff to pay, permits, decorators, etc. At first, John went to the banks--but they tend to avoid restaurants because of what they perceive as a high-risk business--and, besides, John rented, not owned, the location so he wouldn't have the proper collateral.
Investors were out, because they'd want a percentage of the business--usually, at least 50%, but sometimes as high as 75%. At first Smith thought it was over--until he found out about feasible, but nontraditional, funding that would enable him to obtain up to $175,000, from a company called CanaFunding (www.canafunding.com). CanaFunding advances money to merchants against their future credit card sales. The capital is called a merchant cash advance, not a loan, so there is no interest. Here's how it works: CanaFunding buys a merchant's future credit card sales at a discount. The company advances the merchant money for the right to buy back a percentage of their future credit card sales. Other features include a 90% approval rate for qualified applicants, fast approvals, (sometimes within 24 hours) and funds provided usually within five to seven business days. There are no application or closing fees. The best feature is that, unlike a bank, there is no fixed payment schedule. CanaFunding gets paid as you get paid. Although there is an underwriting process, CanaFunding has less stringent requirements than traditional banks. You must be processing for at least 60 days (most banks want to see 2-3 years of operation) and you can't have any open bankruptcies. Banks require a credit score of 620 to 650 but, with this product, you'll probably qualify if yours is 500 or above. You also must have at least 12 months on your lease.
Sometimes a merchant won't be able to make the immediate association as to what additional money can do for the business. In that case, it's helpful to make a visual business plan; for instance, how much additional revenue would be generated by adding 15 tables to your restaurant? What would spending $30K for a full-fledged advertising campaign generate? What kind of income stream would an additional location bring? Or maybe you need to buy out a partner. Whatever your vision, it is always less costly to trust your instincts than to ultimately walk away from potentially greater profits.For more information, please visit www.canafunding.com. |
