AFS Announces New Cash Flow Program With Low, Low Factor Rates

American Finance Solutions' new CASH FLOW program offers a new funding option featuring low factor rates with minimal restrictions! Over 60% of business owners funded by AFS list cash flow as their main reason for seeking capital. The CASH FLOW program provides this short-term financing at very competitive factor rates to fill this need. These short-term contracts, merchants quickly become eligible for their next round of financing in little as eight weeks, providing a continual stream of cash flow.

Factor rates available are 1.2, 1.22 and 1.25

Most merchant will qualify for funding amounts equal to 70% to 100% of their monthly credit card processing average. There are minimal restrictions and the program utilizes the same funding criteria as our traditional programs. All three types of collection methods (Split, Lock Box & Fixed ACH) are available with the CASH FLOW program.

CASH FLOW General Guidelines:
• Minimum FICO Score of 500
• Minimum Time In Business Of 1 Year
• Minimum Credit Card Sales Volume - $5,000/Month
• Maximum One Month Past Due On Rent/Mortgage On Business Premises
• No Open BKs Or BKs In Past 6 Months
• Restricted Merchant Types Qualify With Minimum 2 Years In Business

Why AFS CASH FLOW program?
• Sales agents will not lose the sale due to price!
• Eligible for additional funding when balance is less than 50%
• Agents offer low factor rates to all merchants, not just those with good credit
• Agents' commissions paid weekly and earn full commission renewals as well
• Funded by AMERICAN FINANCE SOLUTIONS – a proven leader in the MCA industry

As with all of AFS’ Merchant Cash Advances products, AFS does not have a processing fee, points or other closing costs. When a merchant’s contract is for $20,000; the merchant receives $20,000 in funding!

$30 Billion For Small Business Lending, Think Not!

Recently Congress passed legislation to create a new fund for $30 billion to assit 8,000 community banks in creating business loans. Specfically the bill, known as the Recovery Act Queue" will waive SBA loan fees, allow the SBA to guarantee larger loans and offer tap breaks for those businesses.

While this is a good step in the direction of opening up credit markets for small- and medium-sized businesses, it is just a band aid. Unfortunately, these businesses will still have to go through the traditional banking system to access the funds. That means qualifying under very stringent guidelines, providing full documentation and if approved accessing the funds in 90 days or more. The more critical issue is fixing the credit markets!

Unfortunately the $30 billion does not place restrictions on business size that can utilize the funds. Most bankers are much more favorable to lending to large, established businesses rather than mom-and-pop operations. I have to believe that the $30B will quickly be gobbled up by established businesses retiring pervious expensive debt and leave little for Main Street. The banks will continue to lend to only their best clients and forget it if you have a credit score below 750!

The fundemental issues are still present and continuing to grow. In the MCA space we continue to see record submissions and funding amounts month-after-month. If you are an agent offering Merchant Cash Advance or any other type of alternative business financing, there has never been a better time. The demand is there, the funding companies left are all solid proven players and the range of MCA products continues to expand making it easier to get clients funding.