If you have a car repair service company and are always looking for opportunities to expand your cash, good luck. Many companies, not only in the auto repair industry, are feeling frustrated by the plight of the banking industry, which makes it difficult for any company to get cash. Banks just don't lend. Few things have become the main topic of experts, voters and politicians in the campaign, and many have asked the government not to intervene to somehow make money flow to small businesses.
The bank did not lend for many reasons. The main reason is that most banks have suffered huge losses through underwriting or risky loans. They basically borrow money to make money without business. The real estate market has had spillover effects that have affected the rest of the financial markets, and now they have avoided talking about them.
So what if you are a small car repair company and need to add another bracket to the garage. You know that this bay will greatly increase your income, but you need money to do it.
What are your funding options?
- go to bank. You can, but the results may not. If you follow this route, please expect the banker to require at least 725 FICO and a two-year tax return.
- Friends and family. You may not have a partner right now, but if you choose this route, you will have it. Even if you only want a loan, they will think for some reason that they now own equity in your business. So unless you want a partner, think twice.
- Merchants advance cashfrom
. For many companies, this may be a good choice. This is not a loan, but a prepayment for more future credit card sales. These companies will check your credit card sales and explain what you will do in the near future based on what you have done in the past few months. They usually give you an amount equal to your monthly amount. They will take a small portion of your daily credit card sales to repay. This amount is usually between 8-25% and will usually be recovered in about 6 months.
Underwriting criteria from
Merchants advance cash from
very simple. Typically, they include the following:
- Four-month merchant statement
- Four-month bank statement
- Commercial rental copy
- Copy of driver's license
That's it. Some companies can provide you with funds within a few days, but the trouble is much less than the bank. Therefore, if you need funds, please consider cashing in to merchants.