July 13, 2009

Credit Crunch Limits Traditional Lenders

Filed under: Business Loans, Instant Business Cash — admin @ 2:44 pm
We are all aware of the effect the existing credit crunch is having upon us as business owners. It really hits home when business owners look to their traditional lending institutions for working capital, business loans and lines-of-credit.
What seperates a Merchant Cash Advance provider from a bank is the ability to place greater emphasis on a business’s track record of success, and less on consumer-oriented measures like FICO scores.
This is important because many business owners may have mediocre personal credit, due to many factors such as over utilization of other credit lines to keep the business running. This does not always mean that the owner doesn’t have the ability to repay, but in the traditional banking guidelines they are not a candidate for additional funds.
Merchant Cash Advance providers weigh their decisions more on the cash flow of the business which opens up opportunities for funds to become available.

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