11/16/2013
VANCITY BUZZ REPORTING on Merchant Funding Challenges for funding
by PAUL DAVIDESCU |
It can be difficult for a business to acquire loans from banks. Like startups, a regular restaurant or clinic may have big plans to grow and expand but unfortunately, they do not fulfill steep bank asset requirements – even though a peak period of profits may be coming up and repayment is a safer bet.
INTERVIEW with David Gens CEO of MAC and funding arm of VISTA CAPITAL GROUP Merchant Cash Advance Program.
It’s very hard for small businesses to get loans to grow their business. It takes money to make money and the banks simply are not there for them. If a major bank is willing to lend to a small business, it’s only if the individual running the business has assets they are willing to put up as collateral that the bank could sell if the individual doesn’t pay the loan back – i.e. real estate holdings. The idea we work with, which was originally developed in the U.S.A., is that we can bank on a business’s future debit/credit card sales. We can give them funding up-front and then take a percentage of their debit/credit card sales to get paid back. The process is automatic so the business owner doesn’t need to write any cheques, and we only get paid when the business actually makes sales. This new technologically enabled method of funding is what has opened up the possibility of getting financing for many small businesses. The kinds of clients we work with are restaurants, retail stores, auto repair shops, spas, clinics, dentists etc. – any business that has a physical store-front and accepts debit/credit cards as a form of payment from their customers. These businesses use our funds for growth, such as expanding their business, renovations, purchasing inventory, buying or building an additional location, buying out a partner, or any number of similar reasons. For more information contact VISTA capital group
