“I need to get out of my merchant advance.”, or “I want to payoff my merchant advance”, and “I want to payoff my cash advance” are becoming more frequent and louder requests by businesses. Other very common pleas include “Escape my cash advance”, or “solve merchant advance problem”.
Regardless of the plea, many businesses have taken out significant short term loans against their credit card sales, which are advances against their future sales. These loans are as short as 3, 6, and 9 months. By taking out this type of loan, your businesses cash flow during the term of the financing is substantially tightened because you not only have to use future sales to pay back the loan taken out, but have to do it in the very short time frame of a few months.
Call us today at Tel: 919-771-4177 or Toll Free: 855-787-1113. We will help you get out of your merchant advance loan with several long term options of 24, 36, 48 or 60 months.
Many businesses in this situation would greatly help their short term cash flow to get out of these merchant advance loans. Businesses needed the funding at the time for critical reasons, but then they are finding that 6 and 9 month terms are too short term, and require them to pay far more per month than they can comfortably handle. If sales are not significantly on the upswing, cash flow can become even tighter than before the advance.
The good solution to the”I want to get out of my merchant advance” dilemma may well be to take the amount they owe, and extend the term out to 24, 36, or 48 months. Businesses can take out an asset based loan against their equipment, or a general loan against the business. Smallbusinessloansdepot can help. We specialize in helping you get out of a merchant advance with often simple and easy loans that range from 24, 36, or 48 months.
Since most businesses have equipment and other assets, the vast majority of businesses will qualify asset wise.
Call us today at Tel: 919-771-4177 or Toll Free: 855-787-1113. Don’t remain in the restricted cash flow difficulty of a merchant advance loan. Pay this loan off, and add back hundreds or thousands of dollars per month into your businesses monthly cash flow by extending the term through a leaseback against equipment, or other longer term loans based on the strength of the business in general, not it’s future sales.
Call us today and get out of the Merchant loan advance circle with an asset based or business based long term loan.
Sample “Get out of merchant advance” solution. Mike’s wholesale auto parts in Charlotte, NC took out a $50,000 merchant advance for 6 months. The monthly repay on the advance is $10,900 per month. Mike’s wholesale realizes this monthly cash flow outlay is far more of a strain on their cash cash flow than they anticipated and are interested in significantly extending the term to get out of the merchant advance.
Mike’s wholesale applies for a long term asset based loan, based on assets such as computer equipment and industrial equipment, though they could have chosen real estate, or the strength of the business as a whole. They are approved for $50,000 over a 36 month term with a monthly payment of $2,075 per month against their Computer equipment. The closing documents are E-Mailed to the customer. The customer completes and faxes in the documents and overnights the originals. Upon receipt, the the closing documents are reviewed for accuracy. Mike’s wholesale is contacted on the phone for a final verbal confirmation and authorization. Funds are wired into their business checking account within 1 business day. They want to payoff the merchant loan and do so. Mike’s wholesale was able to reduce their monthly outflow for this financing by $8,825 per month.
Frequently asked questions:
Question: How do I know whether I can get a 24, 36 or 48 month term?
Answer: In most cases, if approved, the business can choose any of these
term options. Most businesses that do tell us “I want to payoff my Merchant
advance”, and are happy to be able to extend the term to 24 or 36 months, which
are the 2 most frequently chosen options.
Question: I am not sure I have enough Computer equipment or industrial equipment to cover the loan amount. Can I still get the amount I need?
Answer: Yes. We have programs that allow companies to get the full amount they
need, even if they do not have that much equipment.
Question: All I have to put up as collateral is some of my equipment? I don’t have to assign part or all of my sales also, or put up Real Estate?
Answer: Yes, in most cases, you only have to put up the equipment, or some of the
equipment you have. Your future sales are never put up for this option to help you
get out of your Merchant loan. If you do have Real Estate and are interested in a large
amount, such as $150,000 to $250,000 then you can choose to use both your equipment
and Real Estate to go higher. This is an option you have. The terms for this option of financing may be as high as 72 months.
Question: What do I have to provide to apply for this? Do I have to provide bank statements for this type of loan also?
Answer: You do not have to provide bank statements for this request. All you need
is a simple one page application and one page equipment list. You can easily complete this online or print out the short application and equipment list and Fax it in.
Question: Do I have to provide any financial statement or any other cash flow information for this request?
Answer: In most cases, you do not have to provide any financial information. However, if you need a significantly larger amount and your financial statements are readily available and show good cash flow, you can choose to provide them as part of the request.
Question: Do the assets, or equipment have to be new or almost new?
Answer: The assets, or equipment do not have to be new. The main factor is the condition of the equipment. The equipment can be several years old, as long as the condition of the equipment is good or very good.
Question: Can I take this loan out personally and then use the funds to pay off the merchant advance?
Answer: For this product, your business will need to apply in the business name. Once the funding has been approved in the merchant name you can use it to pay off the merchant transaction. Simply provide us with a balance. We will call the merchant, get a final payoff and wire the funds to the merchant and pay off your transaction. You will then begin paying the transaction back on the monthly basis instead of a daily basis, dramatically improving your monthly cash flow and have achieved your “get out of merchant advance”
Get out of Merchant Advance Resources:
SBA Community Blog and Forum – Blog and Forums by the SBA, Small business administration. Questions can be asked and answers provided.
U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.
U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.
Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.
Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.
International Trade Administration – Creates jobs and economic growth by promoting U.S. companies abroad to governments in other countries.
More Get out of Merchant Advance resources:
Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health
U.S. Patent and Trademark Office – U.S. office to file patents to protect a companies new or existing proprietary products.
U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.
CEO Refresher - A monthly newsletter on creative leadership ideas. Short articles, brief book reviews, models, management tools, quotations and commentary.
E-Network for CEOs – Online articles and much more for CEO’s
Public Radio Planet Money – All issues money related to the public.
Thank your for visiting our get out of merchant advance resource page!