Working Capital Finance

This Working Capital Finance Executive Summary will provide the following information:

1. Three key commercial lending changes positively effecting the use of business cash advance programs as well as other short-term working capital programs offered by AEX Commercial Financing Group.
2. Five primary reasons to consider obtaining working capital with merchant cash advances.
3. Ten problems to avoid with credit card processing, business cash advances and credit card factoring.
4. Six criteria for business cash advances up to $300,000.

A Special Comment:
Short-Term Working Capital Options Have Changed

1. A business cash advance based on credit card financing is one of the few viable options for reliably obtaining short-term working capital
2. Credit card factoring is available to most businesses that accept credit cards in their business transactions
3. There is no need for collateral
4. There should not be any up-front fees or closing costs
5. Funds can be obtained very quickly

There are a number of problems to be avoided with business credit card financing programs.

1. Maximum merchant cash advance of $10,000 to $50,000
2. Up-front fees
3. Collateral required
4. Closing costs
5. 2-3 years or more in business required to qualify
6. Financial Statements required regardless of business cash advance amount (Note: larger cash advances can involve additional information such as financials)
7. Fixed payments to pay off the business cash advance
8. Fixed term to pay off the working capital financing
9. 12 to 24 months of $10,000 to $25,000 (or more) in credit card sales required
10. High credit scores (frequently 680 to 700) required to qualify

1. One year as service or retail business
2. Business accepts credit cards as a form of payment
3. Ability to document credit card sales of $5000 or more per month for the last six months
4. Acceptable personal and business credit (minimum personal credit scores of 500)
5. No open tax liens, judgments or bankruptcies
6. If leasing: in good standing with landlord and at least one year remaining on lease

It is not necessary to accept ANY of the 10 problems listed above in order to obtain working capital based on future credit card sales and business cash advances. AEX Commercial Financing Group has eliminated ALL of these potential problems from the Working Capital Program that it uses for their clients. Here is an overview of our commercial finance program:

1. Business cash advances from $5000 to $300,000 (higher amounts also possible on a case-by-case basis)
   
2. No up-front fees or closing costs
3. No financials required for most situations although larger business cash advances will sometimes require additional information such as financials
4. No set term to pay off the business cash advance although there is a minimum of 90 days
5. No collateral required
6. No fixed payments - a small percentage of each credit card sale is collected from one of the processing banks as goods and services are purchased
7. Easy 2-page application: AEX Commercial Financing Group can email or fax the application for its Working Capital Program to you. This application will be requested only AFTER a discussion with AEX. Please note our policy described below about avoiding the use of online business financing applications.

AEX advises business owners NOT to complete an online application.

A commercial borrower working with AEX Commercial Financing Group will not be requested to submit any application until they have completed a thorough discussion with AEX confirming that business financing is feasible for their unique business situation.

By completing an online business finance application, business owners would be submitting confidential business and personal information to a lender before they should. There are numerous commercial loan and business cash advance sites that urge commercial borrowers to complete an application before a business owner even has a conversation with a potential lender.

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AEX Working Capital publishes The Working Capital Journal and provides working capital management programs throughout the United States. Stephen Bush, Chief Executive Officer for AEX, is a nationally-known business consultant and business finance expert. AEX Commercial Financing Group offers commercial finance programs for business cash advances, SBA financing, commercial mortgages and working capital loans. 

Traditional working capital financing is currently available from a shrinking group of commercial lenders. Small business owners should determine which commercial banks are still actually providing this specialized commercial finance funding. In most cases the active commercial lenders for this specialized form of commercial funding are limiting working capital loans to businesses which are current in their debt payments and are showing a net profit (based on recent financial statements). If these two conditions are met, new commercial loans can frequently be obtained to refinance lines of credit and term loans which have been cancelled or recalled by many lenders. For businesses not qualified for commercial financing using these two requirements, there are alternative funding sources such as business cash advance programs.

Meanwhile, there are banks willing to make working capital loans. In general, these commercial lenders have been willing to provide working capital financing, either in the form of new business financing or refinancing lines of credit and term loans which have been recalled or cancelled by other lenders.

Businesses need to increasingly prepare for life without relying on a traditional bank line of credit and instead consider other viable sources of commercial financing such as business cash advances (which provide working capital based upon future credit card processing activity). Business owners should be willing to seek out commercial finance funding sources beyond their previous banking relationships when they encounter difficulties obtaining working capital loans and commercial loans from normally dependable lenders.

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