Ever wonder why there are so many title pawn shops around? It’s because there’s a need for them. In Albany, GA (just a few miles from where I live), there must be twenty of these lenders where a customer can walk in with a car title, borrow a few thousand dollars at a ridiculous rate, and then struggle for years trying to repay the debt. It may be the worst possible way to borrow money, yet people continue to go there. When people are desperate for money, they’ll find a way to get it.
If you own a business, you’ve been in tight situations before. Business owners often need short-term loans to buy inventory, replace a key piece of equipment, or expand their business. Maybe you’ve had an unusually bad month, and you need a little help with payroll. I work with business owners who have monthly sales approaching $100,000, yet they don’t have the $50,000 they need to open a second location. Many don’t even have the $5,000 in cash needed to upgrade their air conditioning.
If you’ve been in business for a while, then you know approximately what next month’s sales will be. You know your customers will continue supporting you, just like they always have done. Your sales are reliable, and there’s no chance that you’ll go out of business anytime soon. But just try convincing a banker of that.
Being the owner of a business can make it nearly impossible to get a traditional bank loan. It’s ironic, but a man working for $10/hour at a large factory can usually borrow money with less hassle than a small business owner netting $75K per year. This forces some small business owners to take out cash advances against credit cards, borrow money from family members, or even visit the dreaded title pawn shop. But you have a much better option.
If your business accepts credit cards, you can qualify for a cash advance on your future credit card sales. As long as you’ve had consistent sales in the past, I can virtually guarantee a cash advance of up to one month’s average credit card sales. So if you have a store or restaurant averaging $40K/month in credit cards, you’ll probably qualify for a $40K advance. The money can be in your account in less than a week with very little paperwork.
Here’s how it works. The credit card processor advances you the money, then takes daily deductions from your daily deposits until the debt is paid (in 6 months or less.) You don’t even have to make payments. This program does cost more than a traditional loan, so if you have access to a bank’s money, use that instead. But this is certainly a lot better than going to a shady lender, and you’ll be completely free of this debt in 6 months or less.
If you’d like more information about how you can get a cash advance for your business, call Neil Moncrief at 229-351-4197.