Merchant cash advances have changed over time in regard to how they have been funded and the collection process. What has changed mostly is the methodology in how they are funded and the risk involved based on the requirements. Initially the pure cash advance model was similar to credit card processing. Many companies would only give cash advances to merchants that demonstrated a consistent flow of credit and debit card receipts. The merchant cash advance was repaid through split funding of the merchant’s payment processing. Generally the credit card processor paid a certain percentage, typically no more than 10%, of […]

Private debt is holding back economic growth, especially impacting the lower and middle class households. Private debt saw a significant increase in the years prior to 2008 and the financial crisis that began the same year. Households in the United States have become dependent on debt to maintain their way of life in the face of stagnant wages according to a report from the New America Foundation called America’s Debt Problem. The report’s authors, Joshua Freedman and Sherle R. Schwenniger, found that lower and middle-income households have much higher debt burdens when compared to upper-income groups. The heavy debt burden […]

A new measure has been successful in aiding people set up small businesses in the United Kingdom. The New Enterprise Allowance has led to 46,000 various entities being created. These businesses range from a gas engineering firm, a vintage clothing shop, to a drama school and a college for children that have learning difficulties. Employment Minister Esther McVey predicts that this budding new generation of entrepreneurs could impact the creation of the jobs of the future. She stated that the success of Great Britain as a united country is dependent on the individual successes of these small businesses. The program […]

Consumers are opening their wallets again, albeit slowly. Consumer retail spending rose slightly in May 2014. Spending was up over 4% from May 2013. It shows economic growth, and it also represents that this is a great time to start up a business. However, if you are hesitant about a business loan, you are not alone. Business loans are slowly becoming a thing of the past. There are many reasons why business owners are turning against them, from the uncertainty of banks due to the economy to the massive interest rates associated with business loans. You may be thinking, “Well, […]

Lisa Madigan, Illinois Attorney General, issued a warning to Illinois residents concerning a debt collection scam. This scam, which also names her office, come via email and threatens the receiver. First off, collections agencies do not send emails. Secondly, these scams are dangerous for all involved. This is dangerous for consumers who fall for the scam, as well as for innocent collection agency merchants, who may suffer from the fallout. Collection agency merchant accounts are already hard to come by, as they are considered “high risk” by merchant account processors. This means that these companies are at a higher risk […]

Starting a new small business can be a very daunting task with some fairly weighty burdens and very lofty rewards.  There exist a number of potholes, roadblocks and deterrents that every little company needs to plan for, or at least be aware of. In making a list of these deterrents, I hope that some small business out there may use this information to persevere though the hard times to a greater financial success. Time Unfortunately there are only so many hours in a workday and you only have so much time and energy to get it all done.  So many […]

Getting your first small business off the ground requires many things but funding is one of the most important factors. There are many ways to fund a small business. There are traditional options such as loans, venture capital investments and bonds and also alternative options such as First American Merchant. The Small Business Administration offers several different loans to accommodate the needs of each individual business. Loans are likely one of the most common ways to fund small businesses. The requirements for obtaining these loans though are high and lenders often take long periods of time to make a decision […]

Starting your own business can be challenging without proper funding. There are a variety of ways to obtain funding for a small business. There are traditional options such as loans and venture capital investments and also alternative lenders such as First American Merchant. Loans are likely one of the most common ways to fund small businesses. The Small Business Administration offers several different loans to accommodate the needs of each individual business. The requirements for obtaining these loans though are high and lenders often take long periods of time to make a decision regarding the loans. Some types of small […]

First American Merchant is a great way to finance a small business. Our merchant cash advance is a great alternative to a business loan and is becoming preferred by many borrowers. So, why should you consider a merchant cash advance for your business? A merchant cash advance is a sale. 1st American Merchant purchases your future sales at a discounted rate. Both parties agree to the discounted cost and the amount of sales being purchased. A merchant cash advance is not a short term loan or advance. Wondering why you should choose a merchant cash advance in lieu of a […]

Small business lending is on the rise as traditional lending institutions have realized that small businesses are vital to the economy. More and more lenders are providing loans to small businesses. Wells Fargo, a leading financial lender, projects that it will have loaned $100 billion to small businesses by 2018. Small business loan approval rates have increased since the economic downturn and have risen from 18.8 percent in March to 19.4 percent in May. In addition to traditional lenders small businesses have many more options when seeking financial assistance due to recent economic trends. There are now many more types […]