The time seems to have passed quickly and it is interesting to look back over those fourteen years and reflect on how business has changed.  Shortly after starting Performance the economy took a turn for the worse and all of us in Arizona struggled through the real estate problems and Savings and Loan failures.  People still talk about the RTC debacle.  But Arizona businesses survived and they weathered the storm by making all of the right moves to cut costs and become more efficient.

Today it seems like we are all struggling again to survive.  Arizona has many problems and has been in the headlines nationally for some very controversial reasons.  It sometimes reminds me of a quote I heard a long time ago that went “when everyone is against you, you can be sure you are completely wrong………or completely right” Only time will tell where Arizona will come in the end.

One thing I am sure of is Arizona will be fine and our business community will be stronger than ever.

As a small business owner, financial crises are almost inevitable. Fortunately, such predicaments do not have to mean the end of a promising business. These monetary emergencies can be overcome if fast action is taken. You may think, “How can I possibly remedy a financial problem in such a short period of time?” The answer is – a business cash advance, also known as a merchant cash advance.

A business cash advance is a sum of money lent to a small business owner without the stringent requirements and high interest rates of most bank loans. It can be beneficial for any type of business, from restaurants to retail stores, to hair salons, etc. Business cash advances can be used to pay for unexpected fees in cases of emergency, to purchase products and/or equipment, to pay off dues, and much, much more.

Merchant cash advances are much easier to obtain than bank loans. Business owners can receive funding for their business without providing proof of employment or salary, and without a requirement of collateral. There is only one requirement for receiving a business cash advance; your business must accept MasterCard or Visa credit cards. After supplying the merchant cash advance, the lender will accept a percentage of each credit card sale, allowing business owners to repay the lender only as sales are made. This is done automatically, making it virtually impossible to fall short on payments, leaving small business owners with the peace of mind to focus on the most important thing, their business. Small business owners no longer have to be preoccupied with the obligation of repaying a lender on time.

The process of applying for a merchant cash advance is short and simple. With most lenders, you can apply online. Simply fill out the short online form and you could be approved in less than 48 hours.

Small business owners no longer have to worry. With a business cash advance you can be prepared for any financial obstacle that comes your way.

Gaston C. writes articles about [http://www.cashprior.com/cash_advances.php]Business Cash Advance and [http://www.cashprior.com/small_business_loans.php]Small Business Loans for Merchant Resources International.

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Perhaps no other major industry is better suited to factoring than the building and construction industry.  For many years, the peaks and valleys of construction seasons and cycles have troubled subcontractors and general contractors alike.  Now factoring offers a cost effective and simple solution that can benefit both the contractor and the factoring company.  Many factoring companies have even gone for far as to specialize in factoring for the construction industry, learning the unique language and needs of subcontractors.

Generally, banks and construction subcontractors don’t get along with each other.  Construction is a risky business and banks are only interested in safe, reliable clients.  If the contractor is new and growing, or does not have several years of positive cash flow, banks won’t even let the contractor in the door let alone give them a business loan.

There are many reasons why construction is so financially volatile, but one of the main reasons is the time delays and cost overruns; that are almost a given in construction.  You almost never ever hear of a building being completed on time and under budget.  The architect and client inevitably change the plans along the way, causing increased costs and construction delays.  If you are the plumbing subcontractor for the new town school and the local school board decides to change the plans after it is started, you truly have no idea when you will get paid.  In the mean time, the plumbers that work for you are expecting to be paid weekly – and you are expected to order and have on hand all plumbing materials needed for the school.  The bank won’t help the plumber, but factoring companies are perfectly suited to this situation.  By purchasing the plumbing subcontractors accounts receivable, for a small factoring fee, the subcontractor can continue on with their business.  Both the construction subcontractor and the factoring company benefit.

Another problem with the construction industry is the scope and number of projects that can be handled at one time.  Building a building is a big deal.  A contractor simple can’t take on more than a small hand full of projects at a time.  And buildings are expensive.  Contractors don’t have the resources to take on more than a couple projects at a time.  Most other industries don’t have this problem.  For example, a company that builds and sells vacuum cleaners can make thousands of vacuums every day, with only a small amount of the companies’ resources and capitol invested in each individual vacuum.  After a while, cash flow evens out and business is relatively steady.  Construction companies can’t do that.  If problems with a project get to be too much for the poor plumbing company, they may have to go out of business.  On the other hand if Mrs.  Jones has trouble with her vacuum cleaner, the vacuum company can easily replace it without having to go out of business.  Again, the bank won’t help the plumbing company but factoring companies are designed to handle just this type of ebb and flow in construction.

Factoring companies can’t change the nature of construction.  Construction will always be subject to massive peaks and valleys and each project will be a huge investment of resources and capitol for contractors.  Because of this, the factoring fees tend to be a little higher than with other industries – for example 3 or 4 percent versus 1 or 2 percent.  And the amount withheld to cover disputes is usually closer to 25 percent rather than 15 percent.  But for the construction subcontractor, this is usually a small price to pay for the peace of mind of knowing they won’t have to file for bankruptcy.

Michael Russell
Your Independent guide to [http://factoring-guideto.com/]Factoring

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Whatever market place a growing business operates in there is always one problem that emerges when a company becomes successful i.e. they all suffer from either cash flow problems or a shortage of working capital. The initial solution that many businesses usually turn to is a bank overdraft and this can meet any cash shortfall at least in the short term, but is it the right finance option for your company? Is a debtor finance option such as factoring better suited to enabling business expansion, here we explore some simple facts about the suitability of both methods in respect of helping a company grow.

The problem with bank overdrafts is simple, the level a bank will set an overdraft limit at will be dictated by a companys’ historical trading data, i.e. previous years turnover & profits etc. using current lending criteria which can change at any time. Without doubt a bank overdraft can provide a useful infusion of capital, but how far can a company develop on fixed amount of capital from a finance option that could be withdrawn at any time, even if your business is unaffected by general trading conditions.

An alternative cash flow finance product such as factoring which exploits what for many businesses is a primary asset, i.e. invoiced debts, is a “here and now” commercial loan option that dynamically moves forward with an expanding company. Increased credit sales means more cash tied up with your customers and your sales ledger, those trade debts throttle your cash flow!

Factoring and overdrafts have broadly similar costs in terms of cash, but when a company is faced with cash flow problems which option would your prefer? Regular trips to the bank spending time re-explaining where your businesses is, negotiating increased credit limits and potentially leaving with insufficient funds to meet your needs and having to do it all again in a few months time. Or would you prefer to make the most of your invoiced assets, no meetings, no time lost, just submit your invoices to your preferred factoring lender, bank your trade debts now and let your business move forward at the pace set by you not someone else!

Visit our [http://www.ebslfinance.co.uk/Our_Services/Working_Capital/Factoring]Invoice Factoring page for more information on the topic of debtor finance.
Eland Business Services Limited are UK based [http://www.ebslfinance.co.uk]Commercial Loan Brokers

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© Eland Business Services Limited

A factor is basically a financial institution that purchases accounts receivable from businesses.  The factor normally bears the credit risks associated with the accounts receivable purchased by it.  There are about twenty firms in the United States engaged solely in factoring. These firms raise their operating funds by issue of equity and debt capital.

The factoring agreement governs the relationship between the factor and the business whose accounts receivable the factor purchases. The following conditions are typically found in factoring agreements. The factor will select only those accounts receivable which appear to be acceptable to it.  The sales of accounts receivable will be done to the factor on a non-recourse basis. This implies that the factor has to absorb the losses arising from uncollectible accounts.

The factor would set up an account, similar to a bank deposit account, for the firm. Monies will be deposited in this account as payments are received or as due dates arrive. The firm can freely withdraw amounts from this account. Surplus balances in the account earn a certain rate of interest.  The factor is liable to pay the firm on the last day of the credit period or when the account is collected, whichever occurs first.

The factor will advance money to the firm against not-yet-collected and not-yet-due accounts receivable. These advances, representing a negative balance in the firm’s account, carry a certain rate of interest. Factoring costs consist of three elements: factoring commission, interest levied on advances, and interest paid on surplus balances. Factoring commission is payment to the factor for administering the tasks of receivables management and bearing the risk of bad debt.  Factoring commission is usually 1 to 3 per cent of the face value of the accounts receivable factored. The interest period on advances may be 2 to 4 per cent higher than the prime rate. [http://www.i-factoring.com]Factoring provides detailed information about factoring, credit card factoring, loan factoring, invoice factoring and more. Factoring is the sister site of [http://www.e-InvestmentProperties.com]Buying Investment Properties.

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The first aspect to acknowledge when seeking purchase order financing is that most factoring companies are very choosy when dealing with this type of financing. There is not a firm set of regulations to follow concerning invoice financing because each situation is very unique and has to be assessed as such. It is typically very difficult to find purchase order financing however, there are factoring companies out there that are willing to take that type of risk.

Purchase order factoring provides existing businesses with a financial solution to continue operating. However, it should be mentioned that these companies typically will only finance those businesses with a proven track record in their said industry. Turning purchase orders around into account receivables is a business solution that will free up working capital and extend finances to the business in a timely manner.

Purchase order factoring should be considered a short-term solution to finance a large purchase or to manufacture specific goods that are already sold. For example, if a company manufactures iron staircases and a popular building company has given a invoice to order a set number of them, factoring can come in extremely handy. It is unlikely that the manufacturer of the staircases has an over abundance of operating capital to purchase materials and manpower for all of these staircases. Most often, banks won’t touch this type of financing so the feasible and low cost solution is to seek out a reputable purchase order company that can advance cash on that invoice.

When purchase order financing companies assess a specific invoice financing request, there are several determining factors that have to be understood. If the company that has issued the purchase order is not credit worthy, it is likely that the invoice factoring company will not lend assistance. Purchase order financing is a very risky business due to the nature of the business. The company is lending money on the premise that the company that has issued the invoice will pay for the goods or services. It is easy to see that any purchase order company would have to be very stringent with their rules surrounding this area in order to be successful. These companies are sticking their necks out to supply a potential customer with the funds required to fulfill their end of a invoice agreement. It is completely understandable that they would be picky and selective in choosing this set of clients.

In order to be considered to qualify for purchase order financing the business seeking financial help must have been in business for no less than a year. The type of transaction that is being considered for invoice factoring must be prominent in the business history and have at least a $100,000 transaction minimum. There are several issues that will depend on the type of industry the business is in and the credit history of the business and the customer. [http://www.troydegarnham.com]Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, [http://www.accounts-receivable-financing.info/purchase-order-financing.html]purchase order factoring, non recourse and other factoring financial services.

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Getting funding for a restaurantcan be difficult when you need to get it quickly & easily until the business cash advance product was introduced.

You as a restaurant owner have at one time or another been faced with applying for a restaurant loan, possibly getting your loan request denied and faced rejection unless you had money to do your own self restaurant financing.

Getting startup capital to open a restaurant is much more challenging then it is for other non food businesses or retail businesses. Banks do not like doing restaurant financing period because of the high failure rate associated with restaurant businesses.

The nice thing with the internet and article directories is that it gives you immediate access to great loan information and options. You can receive great advice to help you with your restaurant business, if you sort out the fluff from the real meaty info with substance. The information is there online for free for you to find and use to your advantage.

How Does The Business Cash Advance Differ From Other Types Of Financing

* It is not a business loan or cannot be called a business loan because there is not an interest rate attached to the loan or a monthly fixed payment you have to pay every month. Since it is not a small business loan it does not get reported by the finance company that provides financing to you. If you ever need a quick easy to apply unsecured business loan or business line of credit that not require you to provide collateral this cash advance product is your solution.

* If you ever need to take out a loan for your restaurant and want to legally keep it 100% totally private, prevent it from showing up in the 3 credit bureaus, prevent other creditors from knowing you applied for financing and received it, the business cash advance or known also as the merchant cash advance is your new solution to how to do it legally any time you need a loan and wish total anonymity.

* Does not affect your credit score since Experian, Transunion, Equifax, do not know when you take out a business cash advance for your business

* You do not have to worry about rigid payments every month like you do with a bank

* Your approval process is in 48hrs not weeks

* You can get funded in about 10-14 days

* You do not have to put up collateral like you do at a bank

* You do not have to provide tax returns

* You do not have to provide financial statements

* No long application like you will get at your local bank

* If you are opening a restaurant and you need more financing certain companies provide financing to new start up restaurant owners who are ready to open in a few days and need extra working capital, this is not even possible with a local banker.

* If you just opened a restaurant and need more cash flow financing to help you make your leasing payments for a few months with your casual dining business, it is possible and not once again with your local banker.

* Payments are made automatically from your credit card merchant account through a percentage of each credit card transaction your business makes, does not require you to remember one more payment you have to make reducing stress and worries about making late payments and paying a penalty.

* It is a Hidden Asset that your restaurant has… If used correctly it can be a very powerful alternative funding source when you need financing that is very quick and easy to get.

* If you do not already have a merchant account, you are locking yourself out of another source of money available when the need for money arises. Certain business owners do not like using their credit card machine because it tracks most of their transactions and would prefer cash transactions since there is not a record of this, but whom they are hurting are themselves when they need money and cannot get it anywhere else.

* A lot of restaurant owners may be in need of quick money for supplies, equipment, staff, adverting, and more, and this type of restaurant funding could be the solution you are looking for.

Provide Alternative Business Financing Solutions To Restaurant Owners

Hard Money – Hard To Place Loans Specialist

Avoid costly future mistakes by learning how to use this type of financing correctly and by clicking here: http://www.restaurantfundingusa.com

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Historically a first tier lender has been an institutional lender such as a Bank or similar company which falls under the regulatory agencies such as the FDIC or Federal Reserve.  The rates of interest they charge are almost always tied to Prime, or to the Libor rate of interest.  The interest charged is at quoted rate plus a factor which can be as high as 4%.  An example would be if the rate was agreed to be the prime rate, you would take that rate and add 4% to it which would get you your annualized interest rate. 

The second tier lender is usually a company which does not fall under these regulatory agencies.  In some states they are regulated by the state banking laws.  But all second tier lenders are restricted to lending to businesses and are restricted from making any type of consumer loans.  All of the loans are secured by collateral and almost always personal guarantees of any owners of more than 20% of the stock.  Interest rates are usually tied to the prime rate but the rate which is added on rate is higher than a Banks because of the additional cost of doing business. 

The final tier is usually an individual or individuals who lend money but are quite often interested in one particular industry or type of collateral.  The terms from these lenders tend to very high interest rates and low loan to value ratios.

In the current banking economy few first tier lenders are actually making loans.  Therefore the second tier lender is acquiring a larger market base as companies who traditionally would have secured first tier financing are only option is to obtain financing with the second tier lenders.
That being said, one has to ask themselves if a lender who is not making loans can be considered a 1st tier lender.  Likewise if a commercial finance company is lending money in this economy can they still be looked upon as a second tier lender when they are the only segment of the business community that is lending money.

One of the major failings of most businesses is the lack of accurate financial information.  What these business owners don’t understand is that current and accurate financial information is the first thing and lender will want to see and if it isn’t up to par, well you know the old saying about its hard to make a good impression the next time. 

Small business owners find it very difficult to justify the cost and time associated with keeping current and accurate financial information.  This aspect of the business notoriously seems to take a back seat to all other activities.  If I can give any business owner a golden key of advice is while consistent accurate information may not guarantee a loan, it will at least give you an excellent platform to present your financing needs. 

How do businesses get a lender to provide funding for their business?  Anytime a business owner applies for credit and cannot produce a current Balance Sheet or Income Statement they have just made their request go to the bottom of the stack behind those businesses which always have current and accurate information on the company.  If you can’t do it yourself then you need a good bookkeeping service or accountant to assist you.  The cost is worth it in the long run.

Performance Funding Group, LLC is a locally owned and privately funded asset based lender who has been providing several different loan products since 1997.  Lou Wallace has been working in commercial loans since 1971.  Lou Wallace can be reached at 602-912-0200.

Are you positioning your business to be first in line to move when things turn around? The economy, while showing signs of improvement is still sluggish and everyone is still trying to figure out if it has reached bottom.  Small business owners are still scrambling to keep their business in the black.

So what happens if your company comes across a deal or contract that is very profitable?  The credit crunch is still with us. With Banks continuing to terminate existing lines of credit and business loans and are not making any new loans to business owners, what can you do to position your business to take advantage when these opportunities present themselves?

The answer may be in talking to an Asset Based lender or Factor to set up financing accommodations for your business now.  These lenders are still making loans and the unique thing about them is they add no debt burden to your company.  You don’t incur any loans to pay back until you have the contract or order to complete.  The financing is there when you need it and you won’t find yourself scrambling to find working capital you would need to seize these opportunities. 

Performance Funding Group, LLC is a locally owned and privately funded asset based lender who has been providing several different loan products since 1997.  Lou Wallace has been working in commercial loans since 1971.  Lou Wallace can be reached at 602-912-0200.