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Getting Money When Times Are Tough

Author: Jay Sumlin

Before you start thinking hard money, do not! Although, there are some sharks in the finacial ocean. These new business lenders are very appealing to any smart business owner. Here are a few options that some savy small business owners has taken advantage of these programs. According to North American Banccard "Many businesses have acquired loans on their future credit card sales." This is also known as Busniness Cash Advancements. To qualify for this advancement business owner must be in business for a minimum of 2 years, have 6 months bank statements and 6 months merchant account statements, a middle credit score of 550 and not over obligated in debt. This is the traditional cash advance lending guidelines from Capital For Merchants program. Funding is very fast. In most cases 7 days or less. Approvals can be obtained in 24 to 48 hours after application has been submitted. There are other companies with less restrictions, but less restrictions equates to higher fees. How much do they lend you may ask? Loans start from $2000.00 to $250,000.00 based on your six month average in credit card sales multiplied by 125%. Some companies may lend up to $2,000,000.00.

Another scenario, that can be considered is using your decent credit to lease or buy ATM's. The ATM's should be placed in a high traffic area. The income potential can be hard to imagine. Some ATM locations are generating $1000.00 per day and if you have five with this kind of volume you are having a a great week to say the least. Here is the breakdown. It does not matter if you lease or buy the ATM; however, I suggest leasing. The monthly payments range from $65.00 to $350.00 per month. You also have the option of allowing North American Bank & Meta Bank to use their funds to minimize your risk. However, you must insure the ATM machines.

You don't have to worry about upkeep or maintence because the software that is install will alert you and the bank when someting is wrong. You must have a dedicated phone line for the ATM machine for dialup or an ethernet connection.

The next option, if you have great credit, is to get an unsecured business line of credit from lenders like American Unsecure. For a small fee American Unsecure will locate funding for you. You must have almost perfect credit with credit scores from 680 to 720 and higher to get funding up to $10,000,000.00. American Unsecure has many programs, we will find the one that is right for you.

If you don't have good credit, there is still hope. Get someone that does have good credit and offer them a piece of your company. Make them a partner with a short term buy-out plan. You may also give them money for allowing you to use their credit. In commercial lending this is a practice that is above board. Or better yet if you have great credit and don't want to be responsible for paying back a loan use your credit for a person who wants a business loan and charge them. The standard rate is optional of what you will pay or what you will charge to help someone else. For instance, if a business owner needed $250.000.00 for a business loan and if I were using my credit, I would want $150,000.00 reimbursement. On the other hand, I would also be willing to pay this amount if I needed the money to make the deal a win win situation.

The other option that I will just highlight is factoring. Factoring is when you have rendered a service an you have a purchase order or invoice that you have not collected on. You may wish to sale your purchase orders or invoice to a factoring broker or factoring company. However, you will be taking a loss on your invoice but, you will receive immediate cash.

The following options are available but I do not recommend them. I do not know how true this is about the founder and owner of Fed Ex Fred Smith. That in order to make payroll he took a large sum of cash went to Vegas and placed it all on a Black Jack table and won. My belief is that you should never gamble with what you need to survice. In other words a person should only gamble with what they can afford to lose. Never use your personal assets to fund your business. Because, if the business fail so does your personal and family's financial future. Coming from an ex-banker using your own personal funds to fund your on personal business is not wise.

Finally, stay away from loan sharks. Desperate measures will introduce you to desperate people. This can cost you more thatn you are willing to pay. For example, and extra stay at the hospital, a few broken limbs, the displacement of a loved one or being introduced to your permanent resting place. So, stay away.
A few of these suggestions are taken out of my self published book that is due out next summer, entitled "Making Something Out of Nothing." If you need any further information or assistance you may contact me Jay Sumlin at ysumlin@yahoo.com or call 1-800-226-2273 ext 1120
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