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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.




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Regarding Resources for the Small Business Community

Small Business Resources

I visit local small businesses every day. So I am often having conversations with small business owners in my community and seeing what it is like from their perspective. They tend to have a few things in common; 20 employees or less, fairly new, and lots of long, unpaid hours for the owners.

They also have another thing in common, which is poor access to business credit. They are usually renting, they use credit cards to pay business expenses, and they lose money on their taxes. Most business owners I know go into work every day knowing that one equipment failure or bad decision could close their doors, and that there wouldn’t be anyone willing to save them.

Few, if any of them, receive financing or credit through traditional banks, or have assets with equity in them. What they usually get is advances through “alternative” or “online” lenders. Sometimes they are advances on future credit card receivables, sometimes they are unsecured term loans.

There are a lot of stories about negative experiences with online lending products like merchant cash advances. Most of the business owners I know in South Florida find them to be very helpful. They are able to funds in times and situations where no one else would help them. Most cash advances actually have reasonable, affordable payments from lenders that offer good customer support. They can usually either pay the advance to maturity, or go back and get more funds after a few months of making payments.

Small business owners always have to be smart and vigilant in protecting their business’ financial future. They need to have other options in building revenue for their business. They need to be careful not to over-leverage their business credit through cash advances, or credit cards, and so on. There are thousands of businesses who are able to use unsecured credit options responsibly and successfully.

As long as business owners are smart, like the ones I talk to every day, they can manage things like business cash advances and come out much better from it.

Strategies for Small Business Financing

Having a strategy for finances is very important. When a business owner simply waits until there is an emergency to get a loan, and then puts their finances back out of their mind until next time, problems can arise.

Merchants generally need to have an idea about how they are going to increase their access to credit over time. Even if they get a small, short-term advance, they also need to look ahead. Credit scores can be very important – merchants should always be thinking of small ways to improve their credit rating, including going through a credit repair process if need be.

If a business has taken on a lot of short-term debt, there needs to be a plan to eventually replace them with a better loan product. Merchant cash advances need to be paid off or consolidated at some point. Otherwise it is difficult to move towards longer and larger term loans. Credit lines are something else to look towards.

And even if access to traditional loans is impossible in the near future, merchants need to have a plan to get one eventually. Even longer-term debts and revolving credit lines can be completely replaced by programs like SBA 7(A).

Joe Alkobi  founded  Main Street Finance Group, which is based near Fort Lauderdale, FL and helps small businesses find the right sources of financing for their companies.

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3 Attributes To Look For In SBA Loans

There are many types of SBA loans. You could call it a business loan, cash advance, short term loan, financing or working capital loans. The essential elements remain the same. When you need a business loan, the obvious criteria are loan amount, rate of interest, term of repayment, clauses in the loan agreement and if you would qualify. Not many business owners think beyond these obvious elements while considering or choosing a business loan. There is more to SBA loans than these attributes.

Here are three attributes that you must look for in SBA loans, whether it is a traditional business loan or a very short term cash advance.

Availability of Secured and Unsecured SBA Loans

Check if the lender offers both secured and unsecured loans. There are pros and cons of both secured and unsecured SBA loans when you pit them against one another. Even within the realm of secured and unsecured loans, there are substantial differences. The reason why you should look for the availability of both types of loans is simple: choice. You should be able to choose what suits you. It is possible you have some asset to use as collateral. You may not have any asset that is acceptable to the lender. You may choose not to offer any collateral even if you have an acceptable asset. Having this choice helps. A secured business loan will have more favorable terms than an unsecured cash advance so having the choice gives you the luxury to pick what is best for you in the given circumstances.

Loan Restructuring

Does the lender allow loan restructuring? Loan restructuring is usually available with mortgage, car finance, large business loans, student loans and even personal loans. There is no reason why an established lender should shy away from loan restructuring as it helps the borrower and is beneficial to the lender. You get the leverage to restructure your loan given the prevailing needs and circumstances. If you don’t have the option of loan restructuring, you are stuck with the terms even if they are not suited at that stage.

Flexible Repayment Plans

Flexible repayment plans will allow you to work on your business finances without being compelled to adhere to a system that you are facing problems with. Also, the lack of flexible repayment plans will give you fewer choices. From the loan term to the loan amount, look for flexibility while considering a lender.




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What does a Merchant Cash Advance mean?

What is a merchant cash advance?

Merchant cash advance its a type of a business loan, but the way it works is a little bit different than a regular business loan.

When the bank says no, we say YES!

When a business is having a cash problems, it can affect the business for a long time. The business owner usually goes to the bank to ask for more credit or for a business loan. Sometimes the bank says no, which can cause the business to be in danger of less sales because they cannot buy the merchandise, or even worse, they may have to close the business.

How it works

In the last few years, more and more businesses choose to go with a merchant cash advance. Merchant cash advances are a way for us to invest money in your business in exchange for a small percentage of your future credit card sales. The way this is works is very simple. Based on your yearly credit cards sales, we can give you the money that you need to grow your business.

Fast Approvals

From the moment you complete the application, we are going to be on top of it. We will get your approval in few hours and the money in your bank in just a few days.