Housing Recovery Opens Up The Door For Home Improvement

Traditionally the home improvement industry has been on many Merchant Cash Advance funding companies prohibited list.  Especially the "old timers" that have been around since pre-2008 when the economic downturn started.  This industry got absolutely hammered resulting in very high default ratios.

Across the country the housing recovery is starting to happen.  The first homes that are being purchased are the foreclosures, auctions and short sales and these homes need the most "home improvement" to get them back in livable or rent able condition.  Typically this requires the services of the following:

• Plumbers
• Flooring
• Painters
• Kitchen re modelers
• Stone and masonry
• Pool and spa
• Heating and air conditioning (HVAC)
• Window and garage door replacement

Business that survived in home improvement and construction are now experiencing strong demand and are in search of financing to fund raw materials for their jobs.  For those business owners that survived and have decent operations now is the time to take advantage of the market and make up for the previous lean years.

Here at American Finance Solutions we have been ahead of the curve and been financing these business types over the past 24 months.  In fact these industries are turning out to now have some of the lowest default rates as well.  Clients in this segment will need to be somewhat established with a 24 month track record, but only a 500 minimum FICO is required, and the provide 12 months of bank or credit card statements since in many areas of the country their business is seasonal.

As always, AFS looks forward to assisting both our clients, partners and agents will financing solutions that are merchant-centric and building long term value.

Over 40 Percent Of Small Business Owners Plan On Investing

Wells Fargo just recently release a Gallup Report that small business owners' outlook on capital expenditures is unlikely to change before the presidential election in November, given the massive uncertainties in the US economy.  It also indicated that small businesses are approaching 2013 very cautiously.

The survey found that while 41 percent of them are planning on making capital improvements, this level is 12 points lower than they made in the past year.  One highlight is that most will investing in new equipment.  Over a majority, 57 percent to be exact, stated that they will not be making new investment into their business next year.

The Gallup report said "small business owners as they consider making capital investments over the next 12 months are consistent with the overall decline in owner optimism since April.  Then also seem consistent with the slowing of the overall United States economy as well as declining economic confidence and a worsening unemployment situation."

For our valued partners and resellers of our financial products this report may seem doom and gloom. However, while the decline in our client base outlook is not good, it does show that over 40 percent of our client base will be very receptive to financing offers.  In addition, focus you pitch on getting new equipment to meet the majority of their needs to keep you sales pipelines full!

AFS Recognized As One Of The Fastest Growing Private Companies

American Finance Solutions, one of the fastest growing merchant cash advance companies for small and mid-sized businesses, was named the 24th fastest growing private company in Orange County, California by the Orange County Business Journal for 2012.  We achieved this with dramatic revenue growth of 272.5% in the past two years and an increase in employee headcount of 70%.

We have proven ourselves again as a key financial resource for small businesses often overlooked by traditional banks, which often only examine assets and personal credit scores. AFS applies a holistic approach to determine the funding amount, based on a small business’s overall health.  Using its proprietary pricing and risk algorithm, AFS creates custom-tailored, low-risk funding programs for each merchant.

The Orange County Business Journal’s recognition of AFS is a attribute our strong growth to our talented team who provide exceptional ‘white glove’ customer service and transparent counsel for our merchants. This accolade further validates our merchant-centric solution to helping small businesses secure capital and grow.

The list ranked 154 private companies based in Orange County by revenue growth over two years, from June 2010 through June 2012.  Each company had minimum sales of $300,000 for 12 months through June 2010.  The list includes only privately held companies, those owned by individuals, families, private equity or other investors.