Monday, June 1, 2009

Merchant Loans and Other Innovative Ideas For Small Business Owners

Small business owners are getting all types of advice nowadays. Here is some of the most innovative advice that small business owners are getting from the web, newspapers and magazines.

Buy Back Your Business Loan

Yes, you read it correctly. "If you have a loan from the bank, it may be possible to buy back that loan from them right now, at a significant discount," said Monica Mehta, managing principal of New York based investment firm, Seventh Capital.

She offers this advice when attempting to buy back your loan:

• Know What Motivates Them

A bank loan that was originated between 2002 and the middle of 2007, may be worth less today to the bank, than it was when it was originated. Also, if the bank that originated the loan is no longer around, the new acquiring bank may have less interest in your loan, said Mehta.

• Understand Market Rates

Borrowers that are considered a "risky play" may be able to buy back their loans at 50 cents on the dollar.

• Persistence

You may not be able to get what you want on your first trip to the bank, so be prepared to return in a few months.

• Be Ready to Close Quickly

"These are special times that we're living in and special times create special opportunities, and this is one way that small business owners can actually benefit from this credit crises that we're facing," said Mehta.

Merchant Loans

Merchant loans offer small business owners the opportunity to receive up to $500,000 for their small businesses within 7 to 10 business days. Merchant loans are one of the best options for owners of retail and service-oriented businesses, because the repayment method was specifically designed to work with their businesses. Small business owners never have to make payments on their merchant loans because the payments are automatically deducted as a small percentage from daily credit card sales.

A website that offers free merchant loan quotes is

Emergency Small Business Loans

The SBA recently announced the arrival of an emergency loan program designed to help "struggling-but-viable" small businesses. Small business owners will be able to apply for these emergency loans in mid June.

The new program will back short-term loans of up to $35,000 that business owners can use to temporarily cover their payments on existing debt, writes Sharon McLoone in her article for CNN Money. "No repayment on the ARC loans will be due for 12 months, and owners will have up to five years to repay them."


jesus said...

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