Comments on: A Merchant Loan for the Lone Merchant http://scfm970.com/a-merchant-loan-for-the-lone-merchant/ Business, Finance, Marketting, Management Learning Fri, 02 Jul 2010 13:22:11 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Aaron Dotzler http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1439 Aaron Dotzler Fri, 09 Apr 2010 23:54:01 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1439 This is a good,common sense article.Very helpful to one who is just finding the resouces about this part.It will certainly help educate me. This is a good,common sense article.Very helpful to one who is just finding the resouces about this part.It will certainly help educate me.

]]> By: Super Planet http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1036 Super Planet Thu, 11 Mar 2010 03:55:01 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1036 Super Planet, I think you'll have a hard time, bad credit hurt many people in so many ways. http://www.americaschoicetoday.com/Payday-Loan.html Super Planet, I think you'll have a hard time, bad credit hurt many people in so many ways. http://www.americaschoicetoday.com/Payday-Loan.html

]]> By: sammyarts http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1030 sammyarts Wed, 10 Mar 2010 09:18:47 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1030 Pros and Cons... Pros: Its regarded (today) as off-balance sheet financing Its open to those with below average credit scores (cash flow vs. history review) Its fairly quick and easy to process. Zero liability - no recourse if the business goes under (typically) Cons: These types of 'factoring' equate to HUGE percentage rates - and although they will forcefully tell you its not comparable to a loan with an APR% - the bottom line is they average between 60% - 125% APR in hindsight. Quicksand - often those involved in these types of advances - keep rolling over the advances (they take a certain percentage of your merchant processing receipts - and often require you to use their processing service so they make money there too, and when you pay down the advance - you are so behind, you end up doing it all over again). This type of factoring utilizes "unearned income" from an unknown source - which is usually categorized as part of an 'equity' account on the balance sheet... If the oversights of the industry ever reorganize this type of lending to be 'on-balance sheet' financing - it could impact businesses and owners substantially (from a reporting & historical / credit rating standpoint). In the end for a 5,000 advance, you will likely pay back 1500 per month (held back from your merchant account funding) for 6 or more months. Its expensive money, but if you have nowhere else to turn - its your (last/best) option. Pros and Cons…
Pros:
Its regarded (today) as off-balance sheet financing
Its open to those with below average credit scores (cash flow vs. history review)
Its fairly quick and easy to process.
Zero liability – no recourse if the business goes under (typically)

Cons:
These types of 'factoring' equate to HUGE percentage rates – and although they will forcefully tell you its not comparable to a loan with an APR% – the bottom line is they average between 60% – 125% APR in hindsight.
Quicksand – often those involved in these types of advances – keep rolling over the advances (they take a certain percentage of your merchant processing receipts – and often require you to use their processing service so they make money there too, and when you pay down the advance – you are so behind, you end up doing it all over again).
This type of factoring utilizes "unearned income" from an unknown source – which is usually categorized as part of an 'equity' account on the balance sheet… If the oversights of the industry ever reorganize this type of lending to be 'on-balance sheet' financing – it could impact businesses and owners substantially (from a reporting & historical / credit rating standpoint).

In the end for a 5,000 advance, you will likely pay back 1500 per month (held back from your merchant account funding) for 6 or more months. Its expensive money, but if you have nowhere else to turn – its your (last/best) option.

]]> By: dreambig324 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1033 dreambig324 Tue, 09 Mar 2010 15:58:13 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1033 Create or join a local meet-ups network group for small business and entrepreneurs. Become a small business expert. Start your own blog offering advise and tips to business owners looking to expand. Attend chamber of commerce meetings. Make yourself visible in your community. Be interested in more than the loan. Be interested in the people and their businesses. Be credible, and sincere, you will get referrals that way. It is all about the relationships you develop and cultivate. Create or join a local meet-ups network group for small business and entrepreneurs. Become a small business expert. Start your own blog offering advise and tips to business owners looking to expand. Attend chamber of commerce meetings. Make yourself visible in your community. Be interested in more than the loan. Be interested in the people and their businesses. Be credible, and sincere, you will get referrals that way. It is all about the relationships you develop and cultivate.

]]> By: sont http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1031 sont Tue, 09 Mar 2010 10:59:52 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1031 ans: $717.35 ------------------- explanation: ---------------- monthly interest rate i = 1% = 0.01 let us agree to call (1+i) = 1.01 as r to match with GP nomenclature and assume payments at end of month also, let L = loan amount and n be the amortisation period in months. L will become L*r^n at the end of n months so payment stream must also be equivalent let p be the monthly oayments, so value after n months = pr^(n-1) + pr^(n-2) + ....+ pr + p sum of this series is p(r^n - 1) / (r-1) so p(r^n -1) / (r-1) = L*r^n or p = L*r^n*(r-1) / (r^n -1) substituting the numerical values in the formula derived, p = (50000*1.01^120)*.01 / (1.01^120 -1) = $717.35 ans: $717.35
——————-

explanation:
—————-
monthly interest rate i = 1% = 0.01
let us agree to call (1+i) = 1.01 as r to match with GP nomenclature
and assume payments at end of month
also, let L = loan amount
and n be the amortisation period in months.

L will become L*r^n at the end of n months

so payment stream must also be equivalent
let p be the monthly oayments, so value after n months
= pr^(n-1) + pr^(n-2) + ….+ pr + p
sum of this series is p(r^n – 1) / (r-1)

so p(r^n -1) / (r-1) = L*r^n

or p = L*r^n*(r-1) / (r^n -1)

substituting the numerical values in the formula derived,

p = (50000*1.01^120)*.01 / (1.01^120 -1)

= $717.35

]]> By: ee http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1032 ee Tue, 09 Mar 2010 10:22:46 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1032 The international economic financial system is collapsing because it has a logic problem in its design. As this fact was not accepted by the elite,people is paying now the consequences. A few of the medium class will buy a piece of land and buy a manufactured house using credits giving by the manufactured houses companies, and most of the people will be reenters forever. People who works in the loan and construction business will loss their jobs. The economy status of USA is in a big trouble and banks and houses are only the top of a big iceberg that affects the entire world. The international economic financial system is collapsing because it has a logic problem in its design. As this fact was not accepted by the elite,people is paying now the consequences.
A few of the medium class will buy a piece of land and buy a manufactured house using credits giving by the manufactured houses companies, and most of the people will be reenters forever.
People who works in the loan and construction business will loss their jobs.
The economy status of USA is in a big trouble and banks and houses are only the top of a big iceberg that affects the entire world.

]]> By: Thomas G http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1035 Thomas G Tue, 09 Mar 2010 00:30:43 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1035 0.1125 troy ounce and of .986 pure gold, about 2 dollars in 1900,about 70 dollars today. 0.1125 troy ounce and of .986 pure gold, about 2 dollars in 1900,about 70 dollars today.

]]> By: golden http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1034 golden Mon, 08 Mar 2010 18:47:29 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1034 The most common type of lender is the commercial bank, credit union, savings and loan companies, or investment companies. These lenders offer business loans, however, often times these loans must be secured. This could mean offering up your personal assets as collateral<!--Although, the business is yours to do with what you want, these loans are very risky to any un-established business. And that’s assuming you qualify. Unsecured loans, usually less than $100,000, are available to business owners based upon his or her personal credit history. http://best-loans.awardspace.com/businessloans.htm Commercial banks may also request that a business have a co-signer or guarantor. This may mean finding a financial partner or checking into the various types of small business loans available through the federal government. Women and minorities have an even wider selection of entities-->willing to loan them business capital. Organizations such as the Women’s Business Ownership, Women Entrepreneurship in the 21st Century, and several others cater to lending money to women that wish to start-up a business, still others actually guarantee them business loans. The most common type of lender is the commercial bank, credit union, savings and loan companies, or investment companies. These lenders offer business loans, however, often times these loans must be secured. This could mean offering up your personal assets as collateral<!–Although, the business is yours to do with what you want, these loans are very risky to any un-established business. And that’s assuming you qualify. Unsecured loans, usually less than $100,000, are available to business owners based upon his or her personal credit history.

http://best-loans.awardspace.com/businessloans.htm

Commercial banks may also request that a business have a co-signer or guarantor. This may mean finding a financial partner or checking into the various types of small business loans available through the federal government. Women and minorities have an even wider selection of entities–>willing to loan them business capital. Organizations such as the Women’s Business Ownership, Women Entrepreneurship in the 21st Century, and several others cater to lending money to women that wish to start-up a business, still others actually guarantee them business loans.

]]> By: guzen http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1027 guzen Mon, 08 Mar 2010 07:46:01 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1027 very cool video i must say. I made sure add you to mu channels also. hey if anyone wants some more info on cash advances here is a great site to read gauranteedcashadvance(dot)com very cool video i must say. I made sure add you to mu channels also. hey if anyone wants some more info on cash advances here is a great site to read gauranteedcashadvance(dot)com

]]> By: Steenskees http://scfm970.com/a-merchant-loan-for-the-lone-merchant/comment-page-1/#comment-1029 Steenskees Mon, 08 Mar 2010 07:23:00 +0000 http://scfm970.com/a-merchant-loan-for-the-lone-merchant/#comment-1029 The funds are deducted before they take the deposit into your account. That way they are sure they get their money and don't have to worry about the funds being available when they go to ACH it out of your account. The funds are deducted before they take the deposit into your account. That way they are sure they get their money and don't have to worry about the funds being available when they go to ACH it out of your account.

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