Retail Store Financing/Leasing and Loans

For this update, retail store financing can come in the form of cash advances and businesses looking for working capital in the form of a cash merchant advance and/or merchant cash loan. Todays financing market is very illiquid in offering retail businesses leasing/financing. Most bank funds are better off served in other industries from a risk/reward factor. However, there are niche institutions out there that will think about retail store financing but usually want the applicant to have at least a minimum of one to two years time in business. Most startups don’t have a possibility unless their personal credit score are over 700 and are prepared to pledge additional collateral to the arrangement with additional clear and free assets. The institutions that finance retail store financing will properly offer up to $50,000 application only and over that amount full financial and tax disclosure would be mandatory … Permitted leases can run between 24-60 months with various buyout clauses…

The following is the type of retail stores under consideration:

Book stores, sporting goods stores, clothing stores, pizza shops, men and womens apparel stores, discount stores, pharmacies and drug stores, fast food restaurants, music stores, video stores, franchise restaurants, mail centers, pet grooming stores, dry cleaners, tanning salons, etc

The most distinctive part of this editorial is the merchant cash advance/loan programs. For the most part people aren’t even conscious of these programs….

The initial question a lot of people are asking is what is a merchant cash advance? An established business in existence for one year or more with visa and mastercard sales can qualfiy for a loan or a merchant cash advance on their previous activity up to $150,000 from a financial institution and $750,000 or more per location from a true merchant cash advance company. The monthly average of their visa and mastercard sales x 1.5 will be a qualifying amount that the lender will fund up to. A quantity of cash merchant advance companies will fund up to $750,000 per location.

This is a skillful way for a business to obtain working capital. Most conventional banks shy away from the retail industry.

These cash merchant advances/loans are great for businesses that have seasonal cash flow needs, that aren’t capitalized appropriately and require more time to achieve their sales base, have credit issues that can’t be overcome at the bank, businesses that want instant cash now, and obviously numerous other factors tailored to specific businesses.

These institutions aren’t FICO driven and are interested in you past Visa/ Mastercard Sales for the preceding six months. Usually the company’s bank statements, the merchant processing statements and a signed application are necessary. to commence the lending process. Once the lenderhas received these requirements, a decision can be made fairly quickly, usually within 24-48 hours. Beyond an acceptance, the money is usually funded within seven business days.

The next obvious question, is how does the client repay back the loan or cash merchant advance? It is from the impending card sales, a small fraction is paid back each day to pay back the bank This is critical because there are no balloon payments or monthly payments to consider. The bankcalculates a small repayment per day that can last up to one year.

Locating available capital whether through leasing and working capital can be very hard in todays times. The cash merchant advances/loans can offer the seasoned business an distinctive opportunity to obtain funds without all the red tape conventional banks require..

Happy hunting for your financing…..

By: J.M Luna

J.M Luna has over thirty years experience in the financial field. This includes accounting and taxes, leasing, cash merchants advances and commercial loans. U.S Corporate Capital Leasing assists the start up and small business for financing in different industries. www.cclgequipmentleasing.com/cashadvances.htm www.cclgequipmentleasing.com/cashadvances-150k.htm

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