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What’s a Reverse Consolidation?

Consolidating short term and unsecured business debt is one of the most frequent requests we get in the cash advance industry. Replacing existing cash advances with other products that lower the merchant’s indebtedness is often extremely difficult. If someone doesn’t already qualify for a bank loan or other secured loan option, they are going to have a tough time finding anything in the unsecured industry.

One option that has become more popular, and accessible, is reverse consolidation programs. Reverse consolidations can pay off multiple existing cash advance positions and free up a great deal of a merchant’s cash flow. Here’s how it works.

Let’s say merchant has 3 cash advances that they pay 5 days a week. A reverse consolidation loan will be disburse enough every week for the merchant to make those cash advance payments, and will only be paying down the replacement amount from the reverse consolidation lender. Merchants will therefore be spending far less every day paying their existing loans because the reverse consolidation is taking care of those payments.

If they’re not too over extended, a reverse consolidation may still allow the merchant to net some extra cash, but it’s usually not as much as a traditional replacement advance. Still, on average they will save a great deal more by removing multiple, expensive, daily payments, and replacing them with one. It also avoids keeping merchants in a situation where they have no other options but to renew multiple cash advances, which constantly adds to the businesses’ over-all indebtedness.

Many cash advance lenders have been expanding their reverse consolidation programs in 2018, and it remains a unique opportunity for small businesses to manage their unsecured, short term debt. Contact Main Street Finance Group today to find out if your business qualifies for a reverse consolidation program.

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Happy Holidays from Main Street – What’s Next in 2018

We’re wrapping up another year of helping our amazing customer base in 2017, with an eye on the New Year. Since 2014, we’ve been providing all the latest alternative lending programs that has made us so successful. Many things have changed, especially in the last year – but business cash advances and unsecured online lending is bigger than ever.

Here’s some of the bigger things that happened in our industry in 2017:

Tougher Competition – we’re used to providing comprehensive customer service and affordable rates for our customers – and those that aren’t, are closing up left and right.

Some of the biggest corporations in the world, from Amazon to Wal-mart to Paypal, are getting directly involved in alternative lending. Banks and credit cards are lending directly to their customers. Alt lending companies like Kabbage are opening up markets nationwide. Other nations like Canada and China also now have booming unsecured lending markets.

Bigger and Badder Data Breaches – the backbone of the cash advance economy is confidential digital data. While the big Equifax breach took up many people’s attention, many people have forgotten just how serious this problem has become. Multiple large-scale hack attacks, such as the “Wannacry” ransomware attack, effected millions of people around the world. Companies like Facebook and Twitter are now under constant scrutiny for the way they have been collecting, using, and in many cases, passing on, incredibly complex data on billions of individuals.

Long story short, people have good reason to be more wary than ever about sharing private and sensitive information on the internet. We’ve always taken our partner’s and customer’s security with the utmost seriousness.

Debt Relief Shenanigans – Every year, new unsecured lending programs come along that help widen the ways in which companies like ours can help our customers. However, not all of these ideas are helpful. Cash advance “debt relief” companies have become a serious problem. In fact, some of the earliest, and biggest debt relief companies of this type are becoming tied up in very serious litigation for encouraging merchants to default on their cash advances. Some of them have even taken to chasing merchants that have already defaulted through public court records, and offering them false promises of settlement.

These companies have created serious problems for many small business owners, tricking them into not paying advances that can risk their very own company. We do not recommend ever working with these types of companies, and do not do so ourselves.

We’re looking forward to offering the same great services like business cash advances, unsecured lines of credit, unsecured term loans, credit card processor savings, cash advance consolidation, SBA loans, and more in 2018. Call us any time to find out what you qualify for!

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Don’t Fall for Business Debt Settlement Scams

As the business cash advance industry grows and becomes more “mainstream,” we’ve seen more and more shady companies trying to trick business owners with promises of debt settlement. Over the summer, some of the most well known of these companies’ were exposed in a very NSFW story that revealed how disreputable and unprofessional these debt relief companies can be.

The news got a lot worse for phony “debt relief” companies this week, as two of the largest cash advance companies in the unsecured lending industry, Yellowstone Capital and Everest Business Funding, jointly sued several debt settlement companies, as well as several cash advance brokers, for allegedly conspiring to sell business owners cash advances and then referring them to debt settlement companies that induced merchants to default.

While the consequences of these scandals are not fully known yet, the details of these issues are consistent with the way businesses that claim they can settle cash advance debts operate. In fact, they aren’t much different than debt settlement operations that claim they can settle personal debts, or even the infamous “loan modifications” that were offered during the financial crisis to help homeowner’s negotiate their underwater mortgages.

First, they attract business owners with high interest advances with promises that they won’t really need to fulfill repayment. They will advise merchants to stop paying their cash advances, and to start sending payments to a debt relief company, that they will supposedly negotiate a settlement amount with the cash advance lender.

But cash advance companies simply don’t work that way. The overwhelming majority of unsecured lenders do not allow for these type of settlements, and in most cases, the money sent to debt settlement companies is not nearly enough to repay these debts, even if they were used for that purpose. Merchants will also likely find out that it may be years before they will ever qualify again for any type of financing for their business because of dealing with these debt relief scams.

Now, many lenders are fighting back as extremely aggressive debt settlement firms threaten to trick their clients into insolvency. And here at Main Street Finance Group, we always advise our clients not to deal with these predatory finance companies that lend with one hand and defraud with the other. While unsecured online lending has gotten bigger and bigger, good advise is still very hard to come by. That’s why its so important for small business owners to vet and research people who approach them, offering them deals that sound too good to be true. Your businesses’ future is too important.

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Why Traditional Lenders Are Not An Option For Business Cash Advance

 

There is no dearth of banks and traditional financial institutions and they have a plethora of loans to offer. However, most of their loans are for conventional purchases or investments. They don’t really factor in the possibility of making unique investments that are specific to an industry or pertaining to a singular purpose for a business. When we talk about corporate loans or business loans, we are mostly looking at procuring large equipment or investing in a massive infrastructure that the banks or traditional lenders can relate to, what they will find viable and can see their loaned amount to be safely parked in assets that they can easily liquidate or dispose off should the need arise.

Not every business loan is for the larger infrastructure or to procure the quintessential equipment.

A business cash advance could be an interim financial aid to steer through a crisis. A business cash advance could be to invest in a supplementary solution, which could be hardware or software. There cannot be a cap on the types or the purposes of business loan as that would be futile for companies looking for the much needed financial assistance.

Traditional lenders do not see much sense in considering applications for small loan amounts over very short terms. The extensive application process, the stringent approval and the long drawn loan disbursal make it less rewarding. Most banks are willing to assist large companies with a fortune as a business loan but would not consider business cash advance applications from small firms and medium enterprises. There isn’t enough return for the banks. It is unsurprising why banks have such an approach, given the much higher overhead, the portfolio to manage and the obvious quest for higher returns.

That is where Main Street Finance Group becomes relevant. In a rapidly changing world, it is only expected that businesses will undergo tectonic shifts, new businesses will emerge and the startup scene has already transformed the way business is done. Traditional lenders fail to understand the kind of business cash advance such organisations need, they fail to relate to the viability of such a business loan and hence do not really feel inclined to expand their programs or accommodate apparently quaint purposes according to what they are accustomed with.

Main Street Finance Group understands and relates to the purposes, the nature of expenses and how small to medium businesses are trying to achieve their goals. That lays at the crux of why getting a business cash advance from MSFG is so simple and more surefire.