Alternative Lending On The Rise

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Why is alternative lending currently on the rise?

Alternative lending is on the rise because many banks are not lending, contrary to what most people may think. This year, most businesses that don’t do more than $1M will never see bank funding.

Here is a short explanation of bank lending:

Under normal circumstances, deposits and loans are more-or-less equal across the banking system as a whole. This is because when a bank creates a new loan, it also creates a new balancing deposit from “thin air”, not from existing deposits.
 
According to CNBC, bank lending funds increased from $9.5 billion to an all time record high of $2.3 trillion last year.  So what are the banks doing with that enormous liquidity?  The answer is absolutely nothing.  Why?  Banks simply put that money back where it came from: The Federal Reserve.  Instead of earning 4.5% percent on car loans or 10% on other funding, banks choose to deposit .25% to the Reserve.  So with all of this money accumulating, why aren’t these banks lending?

What affect is it having in the marketplace?

PCA MarketplaceMore merchants see alternative funding as a better solution than bank lending according to a 50 merchant survey done by industry professionals.  Most merchants will easily take the more expensive cash advance rather than go through the scrutiny of bank lending so they can concentrate on running their business.  With alternative lending, it only takes 3 days to get funded rather than the standard 30 days, thus alternative lending is seeing a huge explosion of Grade A credit come to the merchant cash advance area.
 
Here at Professional Cash Advance, we do just that!  We offer competitive prices and rates that most banks offer, totally unsecured and you will get funded in less than 3 days time with minimal paperwork.

Call our toll free number at 888-564-5551 for a merchant cash advance now.

Professional Cash Advance is your #1 Source for VIP alternative funding.

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Cash Advance Business Loans Update

Cash Advance Business Loans Update

Market Trends

As of Jan 2011 Professional Cash Advance has seen the market trends go to another level with the cash advance business loans industry.  So many merchants that would otherwise get funded from banks are starting to understand that the Cash Advance Business Loans program is here and waiting for those who need business funding.  Many thousands of merchants still don’t know that they qualify for this funding and that there are hundreds of millions of dollars available in 2011.

Credit Scores and Cash Advance Business Loans

Merchants that have excellent credit scores are mentioning that they love the effortless process that Cash Advance Business Loans offer, with 7 day turn around and renewal of cash advance at the 50% mark.  All this does is enhance the working capital that any merchant can use to there advantage, especially retail since the market has already shown there is a 35-50% increase in revenue in the retail statistics of merchants that have used this product.

Lender Terms For Cash Advance Business Loans

In 2011 expect to see many more business lenders getting aggressive again and funding merchants that, as of 9 months ago, were being declined at a high rate.  Also on the rise are different programs available to business owners regardless of credit, and in some cases negative bank statements.  In addition to the 9-month and 12-month programs that are available to qualifying merchants, with a few lenders there are longer programs that extend up to 18 months thus allowing the monthly payback to be very low.

Cash Advance Business Loans Starter Programs

Another growing trend is Starter Programs.  They are perfect for business owners who are processing $15k per month or under as they may be able to qualify for 50% of the processing as a starter advance, and still get the cash they are looking for by renewing again in less than 3 months.  We have seen countless merchants thrive from the starter program and many lenders will give better rates on the 2nd and 3rd advance if the merchant pays back in a timely fashion.

Professional Cash Advance prides itself in being able to serve its clients by providing quick access to Cash Advance Business Loans in a timely fashion while beating the rates of its competitors.

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