Merchant Cash Advances

Anyone familiar with this concept? Getting a loan for some capital is near impossible right now. Looking to explore a merchant cash advance. Not the most economical way to get money, but running out of options. Credit cards are maxed and can’t hit anyone else up. We are breaking even after being in business 5 months with Delco. I was trying to expand menu and market it with ads and new menus and signage. Any suggestions? Good rates, bad rates? Good reputable companies, bad ones? There are about a million of them and do screen them through BBB, the problem is that the same companies will often operate under several names. Just wondering if anyone has an experience to share. Thanks!! and Happy New Year!

This topic has been discussed before. Conclusion: NEVER GET LOANS THIS WAY![/u]

We are breaking even after being in business 5 months with Delco
<- Thats incredible! But, if you’re cash poor, and breaking even after 5 months, it means you started with entirely too little capital and reserves. And since you started on thin $$s, you’ve now got to make do on very thin dollars. I hope you have low rates on your CC debt (and other debt) because you’ll end up paying in excess of 40% on any merchant loan, on top of having cash+interest+fees+various other charges taken directly out of your daily deposits.

Best options:

  1. Make do on what you have.
  2. Find a generous friend.
  3. Close shop.

You would likely find better rates by going to the local mobster for a loan. The rates you are going to pay when you look at all the costs are outrageous.

Been there/done that - mixed emotions…

quite expensive…you need to be doing some major credit card sales, as they will only front you a % of your 1 months transactions…

Mine was slow to fund but was painless…paid it off early, so the expense wasn’t as bad as it could have been…

I used mine for an emergency…moved the shop…lol…only had it for 3 months…

Run away as fast as you can. They will take you to the cleaners on rates & if you are already cash poor the last thing you need to do is have another payment. Think outside the box & start guerrilla advertising. You can drive sales with things other than expensive ad buys & mailers.

Yep. You will cut your own throat taking on one of those. It decreases your daily income and kills your cash flow, not to mention the usurious interest rates.

Take some time, sit down and make a marketing plan. Focus on low cost/high ROI marketing. Things like post cards and press releases. Sending out 100 post cards will cost 28 cents each for postage and 4-5 cents for printing. $32 that should convert to at least 10 orders (much more if you haven’t done it in the past). At an average order of $12.99, that is $130. Send out 200 the next week, 300 from there, and so on. This is not an expense, the money you spend here will generate more money. Keep increasing the number spent until you are hitting every customer who hasn’t ordered in the past 30 days.

Make a plan, post it here, and implement it. With credit cards maxed, you need to think more about sales generation than additional funding, because with more cash this problem will only be delayed.

[size=5]GO TO A MOBSTER FIRST . . . . THEY HAVE BETTER RATES, TERMS AND POLICIES![/size] :shock:

can anyone refer me to a local mobster in oklahoma

haha

dennis