Your Small Business Lifeline for 2008 -- Think Merchant Cash Advance

Las Vegas, NV (PRWEB) December 31, 2007 -- Crown Financial Services, Inc announced today a brand new program that is unique and designed to help small businesses with cash flow. The Crown Financial Services "Working Capital Program", or merchant cash advance, is designed to put cash into the hands of merchants who find it difficult to obtain capital through traditional funding sources. The advance is based on the merchants past MasterCard/Visa sales volume as opposed to the merchants personal credit score.

SBA statistics reveal 80 percent of all small businesses fail during the first year. And a full 92 percent are unable to get traditional financing from banks. Restaurant and retail operations, or any business that accepts credit cards as a form of payment, can now get a merchant cash advance on their future credit card sales. And many smart companies are doing just that.

Dan Ollman, President of Crown Financial Services, states, "There are as many different needs for this kind of funding, often called a merchant cash advance or credit card factoring, as there are small businesses operating today. For example, a restaurant owner who can't quite make payroll may survive the crisis and keep his doors open with a merchant cash advance. Or a mom and pop hardware store could suffer a flooded basement or damaged piece of equipment or loss of inventory and need to make an immediate and often substantial expenditure. Even when these extra expenditures are covered by insurance, there might be a lag time until reimbursement. This is where our merchant cash advance can become a small businesses lifeline."

Ollman states, "Then there's just the unpredictability of running your business on a day to day basis. Routine occurrences, like a slip in sales because of bad weather, a shutdown during a power outage or road maintenance, can cause you a significant cash crunch. Crown Financial Services is here to help with our new Working Capital Program."

This Working Capital Program can also be used for growth. If a hair salon is looking to expand its services and become a day spa and the space next door suddenly becomes available, the owner will need money to renovate. Ollman says "With our merchant cash advance program, the owner could have the needed funds in hand in just 5-7 working days."

The advance amount the merchant can receive is determined by calculating the company's average monthly Visa and MasterCard credit card sales for the past six months. Crown Financial Services Working Capital Program offers financing from $5,000 to $1,000,000 per location.

The loan amount is typically 100 percent to 150 percent of the average monthly Visa/MasterCard sales volume. Cash is also used as the basis for the loan in certain situations, such as diners, pizza places, and sandwich shops. The bottom line: The merchant's monthly payment should be in the neighborhood of 10 percent of his total monthly volume, including cash, and Visa/MasterCard.

Loans generally average $35,000-$50,000, and the loan is paid back within 5-12 months. After the merchant pays back 50 percent of the advance, he has an opportunity to renew the arrangement again.

Payment is very simple. Crown Financial Services will work through a credit card processor to draw money from actual profits as payments are made using credit cards. Or, we may draw his payments directly from the merchant's bank account once the credit-card payments are deposited there (ACH Withdraw).

"We share the same goal as your local bank-to insure the long-term health of the local business community," Ollman added. "It is the health of these small businesses that is so critical to the future of everyone living in the area."

A merchant cash advance can be a great way for a small business to get the cash it needs to grow, or to get through a particularly difficult time. Will you need a cash advance in 2008?

Ollman says, "Look into this new option now before you need the funds. Our working capital program acts as a great emergency cash plan. Be prepared! It's your business. And for many small businesses, it may be the only source of funding that will help it survive. It may just be your businesses lifeline."

# # #