Your Questions About Small Business Financing Options

George asks…

What are some financing options available to small businesses?

My salon needs a make over, I do not have perfect credit :(

admin answers:

If you cannot get approved for a business loan or you want a less expensive option, a Merchant Cash Advance could be the best fit for you.

Some people may say that Merchant Cash Advances are a bad idea because of “high rates”, but lets compare some options…

OPTION 1: Small Business Loan

ADVANCE AMOUNT: $100,000
ANNUAL INTEREST RATE: 8%
TERM: 24 Months
Total Repaid: $200,745.60
Total Interest Paid: $100,745.60 !!!!!!

OPTION 2: Merchant Cash Advance With BankCard Funding:

ADVANCE AMOUNT: $100,000
Purchase Factor: 1.35
RTR (Right to Receive): $135,000
TERM: The average time to pay back is 7 months. There is no set “TERM”, we collect a percentage of your credit card sales until the RTR is paid off.
Total Repaid: $135,000
RTR less Advance: $35,000 !!!!!!

Going with option 2 you save over $65,000! And you finished paying much faster!

Please keep in mind that the numbers used in the options are only examples and could be different, but they are actual averages.

If you would like to apply go to the following link:

http://www.bankcardfunding.com/business-cash-advance-application

If you would like more information about BankCard Funding or Merchant Cash Advances, please visit http://www.bankcardfunding.com or call 1-888-221-4545

Richard asks…

Invested my own money to finance a small business. What are my options if I leave the business?

Can I write that investment off my taxes if the amount has not been re-paid in full? What are other options? The business may not be able to re-pay the investment.

admin answers:

This is a very simplistic answer, but until the business makes a profit, you do not have any write offs. That would be asking the taxpapers to finance your venture.

Robert asks…

what are some different financing options for small businesses?

admin answers:

If it is for Real Estate (purchase of existing or construction of new), your best option, in my opinion is a SBA 504 loan.

You do not have to deal with the SBA unless, of course, you do not repay your loan.

It is 10% down (land counts), fixed rate at 6.49 for 10 or 20 years. It is the best product out there.

If your business is leasing space, then a bank loan guaranteed by the SBA is still your best choice.

Hope this helps.

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