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January 9, 2009
How Merchant Cash Advances Work
Small-business owners who need quick access to capital have a burgeoning industry eager to fund them: merchant cash advance providers. The decade-old industry has grown significantly in the past two years, to more than 50 providers, observers say, and the tight credit environment is fueling demand. As interest in their business grows, providers—who charge premiums of 30% or more on the money they advance—are trying to promote industry standards to avoid scrutiny from regulators.
February 15, 2012
Poll: Small-business owners fear economic situation
Almost one in four small-business owners who are currently not expanding their workforce, 24 percent, said they are holding back from hiring because they are worried about no longer being in business in 12 months.
“The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents. We live on a placid island of ignorance in the midst of black seas of the infinity, and it was not meant that we should voyage far.” - H. P. Lovecraft
Real Estate Newsletter Articles this Week: Existing-Home Sales Increased to
4.15 million SAAR in November
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At the Calculated Risk Real Estate Newsletter this week:
[image: Existing Home Sales]*Click on graph for larger image.*
• NAR: Existing-Home Sales Increase...
19 hours ago
9 comments:
I see we've achieved the next innovation in the field of payday lenders: payday lending for small businesses. Because, you know, that's critically important as we move to a bring-your-own-job economy.
Who Struck John,
Without commenting on Amato's situation specifically, RapidAdvance President Jeremy Brown says responsible merchant cash advance companies are careful not to retrieve so much money from a customer that the business won't be able to survive.
It's no doubt a complex financially innovative tapeworm model designed by PhDs in Economics.
"are careful not to retrieve so much money from a customer that the business won't be able to survive."
Didn't the mob perfect his biz model in the 50s? And they had tight regulation, with Fat-fingered Louie and No-neck Paulie to see that it was enforced. This preceded the bust-out model of the later mob, adopted by private equity firms like Bain.
The Appalachian Conference...more important for our financial future than anyone realized.
fried,
I bet to differ! *sarcasm*
From the link:
Tony Boulton, owner of the three-person kitchen supply store Design & Grace in Grapevine, Tex., got $20,000 from AdvanceMe in 2007, which cost him $27,000 in credit-card sales.
$7,000 / $20,000 = 35%
From The Godfather (1972):
So, I am to receive thirty percent for finance, for legal protection and political influence. Is that what you're telling me? - Don Corleone
See? Not even remotely the same. 35% only gets you the finance part these days. You are on your own when it comes to legal protection and political influence.
I bet to differ? Freudian slip.
You know, I really wasn't being sarcastic. I fail to see the difference between the mob's bust-out biz model and that of private equity guys like Bain. As for these vultures called merchant cash advance providers...how does that differ from the mob "putting money on the street"?
fried,
I was the one being sarcastic when I said (or meant to say), "I beg to differ!"
I can't actually see the difference either, other than the idea that Don Corleone only wanted 30% instead of 35%.
Don Corleone was also probably more understanding about negotiating an extension.
Who Struck John,
...responsible merchant cash advance companies are careful not to retrieve so much money from a customer that the business won't be able to survive.
Army Protection Racket
You've got a nice army base here Colonel. We wouldn't want anything to happen to it.
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