Let me ask you,
- What’s the Secret to Getting the Capital You Need with Affordable, Easy, Fast Loan
We’re surprised you said “no” to getting the secret to more, better and cheaper business capital! Frankly, we’re puzzled by your decision. You see we have been offering you business capital alternatives for some time but have not heard from you.
Most business owners don’t know the secret to this questions. That is why we are providing you with this message so you get all the business capital you want and need.
For the past few years, small business owners seeking financing have undoubtedly found themselves classified into one of two groups: the “bankable and the non bankable”.
Put simply, some businesses get to enjoy the great terms and low cost of a bank loan, while the rest are just left to navigate the complex, expensive world of alternative lending primarily targeted to the sub-prime lending market.
What is the secret?
The problem is only a tiny fraction of small businesses ever fit into that first group, while a growing number of small companies seem to deserve better than the over-priced merchant cash advances and other short-term financing they are being offered.
Banks have tightened up their lending standards, credit scores have been hit, and available home equity has evaporated. A door opened wide for hundreds of alternative lendersoffering quick, easy financing to small business owners hungry for loans. While this financing can get expensive, with an effective annual interest rate of 50-100% percent pretty common, at least it is quick, convenient, and practically guaranteed.
Plus, the definition of “bankable” is very narrow.
Countless businesses have been turned away from the bank for not having enough collateral, asking for a loan that was too small, or even by virtue of being in a high risk industry, such as retail or food services. From the bank’s perspective, if you have any of these things you might as well have leprosy.
Combine this with the fact that many traditional lenders just aren’t interested in lending to the smallest businesses. Consider that the nation’s biggest banks define small business as companies with revenue of $20 million or less. This could include companies that have hundreds of employees. Even the SBA’s coveted small business loan programs seem to befinancing medium to large companies, not the mom and pop operations down the street.
So what is the secret?
Can it be the Growing “Middle Class” in Alternative Lending
This has created a challenge for a significant amount of small businesses in need of financing. As the economy shows signs of a real recovery, there is a growing population of small businesses caught in between in terms of the actual risk they pose to lenders.
These are typically good companies, with solid business models, and strong revenues- businesses, it would seem, that they deserve a better and cheaper financing product, but don’t qualify for bank financing.
What many of the owners of these businesses don’t realize is that there is a population ofalternative lenders out there who will offer an assortment of non bank financing products, from term loans to invoice factoring and even cash advances, at surprisingly affordable rates.
While alternative lending will always be more expensive than traditional sources of funding, in many cases, the differences can be relatively small if the company is in good health. Plus, what few alternative lenders seem to be emphasizing is that with the right guidance you can use these alternative sources of funding to rebuild your business profile and eventually steer it to sources of cheaper, traditional financing.
For example, we have been helping a company that provides on-site mobile installations in vehicles. They came to us needing an infusion of working capital to take advantage of some upcoming contracts. The owners had challenged credit, and the business itself had taken some negative hits post recession. But, they have good cash flow and a solid business over all. We’ve helped them rebuild their credit through a series of short-term loan products. We are now in the process of closing a much larger loan amount and even better terms with a new SBA loan.
That’s the power of guided alternative lending in action, and it opens the door for numerous small business owners who may not think they have many options.
Is the Secret the fact that business owners seeking capital or business loans are often overwhelmed by the number of options out there. As a result they never learn the secret.
Demand for capital or business cash advances has been gaining momentum ever since the Great Recession struck at the end of 2007, and hundreds of alternative lenders have quickly jumped in to fill the gap offering a growing variety of short-term financing solutions.
But while these offers for instant, easy cash may be alluring, many business owners only find themselves on a long-term, high-interest merry-go-round that can seriously cripple their business.
Over the years, numerous industry experts have been quick to point out that alternative lenders are not regulated in the same way banks and other traditional financial institutions are. Many have rather indiscriminately denounced business cash advance lending as a whole, claiming that lenders’ marketing tactics are inherently deceptive, and their rates are unreasonably high.
But, we think that is the wrong attitude.
Business cash advances have their place in the alternative finance landscape. In fact, it’s a space that they largely helped to define. And, the reality these days is that growing competition and development has put a downward pressure on rates and terms- especially for those businesses that have a decent, though not perfect, credit profile.
Thus, the secret to securing working capital or a good business cash advance loan really boils down to understanding four, pretty simple things:
- How these financing products work
- How your business looks to a lender
- How your business can repay the loan
- How a business loan should be used in the first place
What is the Secret to Cash Advance Loans?
Cash advances should not be looked at like a traditional loan. Some business owners make the mistake of not considering how the term of the loan affects the annual interest rate (APR). Most cash advance loans have terms that are less than a year. So, if a business owner receives a cash advance of $20,000, and has to pay back $24,000 within 6 months, the effective APR is 40%, not 20%. Moreover, payments are typically made on a daily basis via automatic withdrawals from the business’ account, which can quickly deplete a business’ cash flow and indirectly cause other expenses or losses.
Over the past couple of years, the alternative lending industry has gone through a revolutionthat has resulted in two very distinct camps: those targeting real high risk borrowers, such as start-ups and businesses with extremely challenged credit profiles, and those targeting more established, stable businesses sporting strong sales and decent credit.
What this means for business owners trying to navigate the choppy waters of alternative financing is that they first need to get a realistic sense of how they look to potential lenders. Stronger businesses, in particular, may find that they can qualify for much cheaper cash advance loans if they stay away from the big name lenders and instead target the providers of more premium products.
Cash advance companies deliberately reach out to business owners who have been declined and may have been labeled “high risk” by banks. For businesses that are truly high-risk, these financial products can be a real life line, providing them with much-needed working capital without risking their personal assets or their business.
We sometimes offer our clients these products after carefully considering their specific situation. In such a case, we clearly explain the process as well as the risks, and we help them come up with a plan to both manage the costs and eventually move on to other products.
For those businesses on the other end of the spectrum, they now have more “premium” options for short-term financing, many of which can help them strengthen their credit so that they can eventually qualify for traditional financing, such as an SBA loan later on.
In either case, business cash advance loans are meant to be temporary sources of working capital. Borrowers should have an understanding of their own situation; develop a well thought out plan for how they will cover the cost of the cash advance through the duration of the term, and make it their goal to eventually move on to more sustainable solutions in the future.
Discover all the Secrets to Getting Working Capital in a Free Loan Coaching Session
There is no way that we can provide you is a single page all the secrets to getting business capital but we can in a Free personal coaching session. That is why, we’d like to offer you an invitation to get more capital for your business’s new project and attend our free business funding training program: The 5-Steps for a Profitable & Low-Risk Capital Plan and Loan … How unique business funding technique works to Build Small Business.”
This maybe your last chance to get in. So far, hundreds of small business owners have signed up. But we haven’t heard from you at all…
We can only assume that 1) You missed our invitation, 2) You don’t want to learn about an capital funding techniques that they’re so good, they were once used exclusively for “BIGBOY” projects funding, or 3) You’re just not ready for this capital funding.
Regardless, we want to give you one last chance to get the funding you need for your business today. We can arrange for funding from between $5,000 and $50 million depending on your qualifications.
By saying “YES”, you’ll get FREE special personal coaching sessions on the secrets of business capital funding and exactly how these unique business funding techniques work… and why we believe they could save your business from not having the money it needs for its next project.
For details call me at 415-678-9965. Just remember, this is your last chance. This FREE offer closes soon.
Profit Builders Inc
P.S. We’re going to give you a special gift when you contact us. It’s a special coaching session and formula that has already made a fortune for our users – Enjoy it!