Florida Merchant Advance Loans – Brightening the Outlook for Florida Businesses
In 2016 thousands of businesses in Florida will fail. With the single most common reason for failure coming from the lack of adequate cash flow, small business owners have needed a lifeline for short term cash crunches for years and until recently none existed. Florida merchant cash advance loans are helping pump the oxygen by way of needed capital into family-owned companies across the sunshine state and brightening up the lives of tens of thousands of employees who depend on their survival. Due to the seasonal business swings in Florida, a more perfect method of funding could not have been made to order better than merchant cash advance loans and the philosophy behind them.
Riding the Waves:
Exactly like the waves coming in along the shorelines each day at Miami beach the tide of peak and off-peak business is what dictates success for many small company owners. In Florida relying on tourism and seasonal events such as bowl games, motorcycle runs, NASCAR and countless other festivals and weather related activities the general structure of the merchant advance allows for the highest and best model to be utilized. Traditional loan products designed for the typical SBA philosophy of financing fall short in many instances due to the lack of flexibility. The latest and best fit for funding needs seems to be coming from a loan which technically is not even considered to be a lending product.
An Orange Without Seeds:
Because the merchant cash advance loans offer instant operating capital and provide such flexible payment terms they can be compared to one of the state’s finest products – the Navel Orange. With the sweetness of the fruit being exactly like the quick cash and the lack of seeds representing the “no flaw” structure for repayment merchant advances are popping up like a crop of their own throughout the state. Since the repayment is taken as a percentage of the credit card business brought in daily the best times of the year allow for rapid payback and the quiet season’s payment regimen is proportionally less. By design, the advance significantly reduces the chances for stalling out with working cash on hand which previously occurred from being required to pay the same monthly amount during the slow season on conventional installment loans.
Coming out of the Curves:
Much like the local tracks where cars come off of the curves and roar at record speeds down the straightaways at Daytona International Speedway , Florida businesses can utilize the cushion of the reduced cash outlay when business is soft and then quickly retire the balance during peak seasons. Utilizing that consistent percentage of credit card receipts to bank on during the slowest periods is vital for companies which may do more than 50% of their total business volume in a period covering less than 60 individual days which is broken up throughout the calendar year.
For business owners who have jokingly referred to hitting the lottery to have enough cash to pay off their business debt, the merchant advance model is strikingly similar. If large percentages of the balance advanced can be reduced proportionally during the most successful times, it is precisely like using large windfalls to eliminate the total borrowed without any strain on the business. Making huge payments is easy when business is booming and having the flexibility to recover with tiny amounts of cash outlay during brutally slow spells makes the perfect match for the tourist-related enterprise. Many business owners who strongly endorse the new merchant advance program explain that since the entire process is centered around only utilizing a percentage of the total credit card transactions, there is a minimal drag on their business. With the amount eligible to be advanced relying on the history of the business it is almost as if a cash infusion occurs with the statement of approval being “conduct business as usual” and the debt will disappear.
Headed Home while Flying Under the Radar:
Most Merchant cash advance loans are not reported to the credit bureaus which adds another enormous advantage over other lending methods. With the flexible terms set for payback at the natural pace of conducting business and not adversely impacting the overall credit appearance, the option is even more attractive to provide a unique financing tool for small business throughout Florida. Cash flow shortages are threatening to darken the outlook for family businesses at alarming rates. Merchant cash advance loans are bringing the sunshine back in a state which is largely dependent on its warmth.