Get out of Merchant Advance
How do I get out of a merchant cash advance?
Many businesses have taken out 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. Take the get out of merchant advance path. The business not only has to use future sales to pay back the loan taken out, but has to do it in only a few months. People are asking, how do I get out of a merchant cash advance? This is how.
We will help you get out of your merchant advance loan with several long term options of 24, 36, 48 or 60 months.
Many business owners situations have deteriorated into a merchant cash advance nightmare. They feel the merchant cash advance will put them out of business, and lock or freeze their business checking account. Some have said the Merchant cash advance companies threaten to sue for a default judgement against the business.
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 or longer. 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 either of the following numbers. On Mobile you can tap either Tel # link, 1-919-771-4177, or 1-855-787-1113 and press dial.
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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. Many business owners call us for help. They all have similar requests.
Business owners say I need to get out of my merchant advance, or I want to payoff my merchant advance. I want to payoff my cash advance is becoming more frequent and louder request. Other very common pleas include “Escape my cash advance”, or “solve merchant advance problem”. Sometimes callers just say they “need to get out of merchant advance”, or say they are “trapped in a merchant advance”. Other times they will say they need “help getting out of merchant advance” or “help getting out of business advance” or “help getting out of business loan”. Sometimes they will not know it is an advance and will ask to get out of a short term business loan, or ask to payoff a short term business loan.
January 19th, 2015 – Portland, OR. Pacific Coast Framing takes out 36 month term loan for $50,000 and pays of 2 merchant cash advances. The first they paid off was a $30,000 for 6 months advance that has a monthly payment of $6,000 per month. The second advance was for $20,000 for 5 months that had a monthly payment of $5,000 for a total monthly payment of $11,000. The 36 month term loan allowed them to lower the payment to $1,800 per month, improving their monthly cash flow by $9,200. President Harold Bailey announced at a staff meeting, “This consolidation and extension of the terms has greatly improved Pacific Coast Framing’s cash flow. In the next business cycle, we will devote significant financial resources to advertising, inventory and hiring additional employees to meet increasing demand. We look forward to increasing revenues and profit.”
August 6th, 2015 – Eureka, CA. Eureka Paint supply takes out monthly payment loan to payoff merchant cash advance. President Enrique Baron had 2 merchant advances for a total of $30,000. A $45,000 monthly term loan was approved for up to 120 months. The other 2 advances were paid off and the customer netted $15,000. In addition to netting $15,000, Eureka paint was able to take 2 short term merchant advances that had a 4 month and a 6 month term and extend them out to 36 months. Their monthly cash flow improved dramatically. They had been paying $4,500 per month and with the new loan, it was reduced to $1,200 per month. This resulted in a $3,300 per month improvement in their cash flow.
06/18/2015 – Smith’s wholesale gets out of merchant advance. Jason Smith of Smith’s wholesale made the following announcement at the company’s most recent board meeting. “With this longer term loan, we have taken 2 merchant cash advances totaling $220,000 with a 6 month term and combined them into 1 loan with a 36 month term. Our monthly cash flow has improved dramatically. Our cash flow had been crippled with the existing advances. They provided some short term relief at the expense of long term company health. Our improved cash flow situation will once again allow us to put more resources back into inventory, employees and new product lines, as it should be. This shifting of resources will allow us to be more profitable in the medium and long term.”
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.
Get out of merchant advance 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 “get out of merchant advance” program? 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.
Whether your business wants to “payoff a short term business loan” or has more than 1 and you want to payoff short term business loans, your business needs assistance.
Get out of Merchant Advance Resources:
For more information on business in general and business loans, visit Planet Money
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