Tuesday, February 28, 2012
Monday, February 27, 2012
Merchant cash advance proves popular
Over the last few years we have seen the banks reduce their lending appetite to small businesses... oh sorry despite them saying the contrary. This has created funding gaps for small businesses who would have just phoned their bank managers and asked them for a small overdraft or overdraft extension.
Well not only are the banks not that interested in lending to small business the vast majority of bank managers have been removed. Alternative lenders have stepped in to fill this funding gap and one type of alternative source of finance for retailers has been the merchant cash advance.
A merchant cash advance will typically supply a forward advance to a trading business that receives credit and debit card payments for their product or service the equivalent of 1 months takings. So if you process £15,000 on average through your PDQ machine you can take that as a cash advance.
To find out more about merchant cash advance follow the link.
Well not only are the banks not that interested in lending to small business the vast majority of bank managers have been removed. Alternative lenders have stepped in to fill this funding gap and one type of alternative source of finance for retailers has been the merchant cash advance.
A merchant cash advance will typically supply a forward advance to a trading business that receives credit and debit card payments for their product or service the equivalent of 1 months takings. So if you process £15,000 on average through your PDQ machine you can take that as a cash advance.
To find out more about merchant cash advance follow the link.
Great shortcuts for business owners
Our journalists at Enable Corporate Strategies blogged about these great Company Shortcuts from Lara Morgan the other day .
Great tips and fast track advice for business owners, Directors and entrepreneurs. Well worth checking them out.
Have a look for yourself and please let me know what you think.
Great tips and fast track advice for business owners, Directors and entrepreneurs. Well worth checking them out.
Have a look for yourself and please let me know what you think.
Thursday, February 23, 2012
Business Lending - Project Merlin Not Working
Project Merlin is not achieving one of the core parts of what it was designed to do – namely increasing the amount of money the major banks should be lending to SMEs.
Lending to small business for 2011 reached £74.9 billion, which was some £1.1 billion short of the target that had been agreed just over a year ago. Now, while £1.1 billion out of a £76 billion target may not seem like a big deal – after all, it is only 1.45% - we have to consider the actual sums involved. £1.1 billion in anyone’s language is a huge amount of money and I’m sure there will be businesses up and down the land who would have welcomed a very small amount of this being lent their way.
I think the bank lending picture will look like this for sometime to come may be even into 2013.
Fact: Businesses are going to have to seek alternate sources ow business finance if they are wanting to raise funds for their business.
Subscribe to:
Posts (Atom)