FINALLY..... WORKING CAPITAL BUSINESS LOANS FOR CAR DEALERS

If you own a car dealership and have had trouble qualifying for bank or other loans, we could provide you with the financing you need -up to $500,000 or as little as $5,000. You could be approved within 24 hours and you could have funding in your account in as little as 72 hours. One of the most prevalent types of financing is the merchant cash advance option. 

This process works by allowing you to pay back the funding through your credit card receipts or receivables in the dealership. There are a number of different ways to finance your loan and your funding manager at IMN Direct Capital Funding will work on the best deal for your individual needs. Your loan for your car dealership loan is a safe and easy way to get the small business loan and alternative funding you are looking for. For most small business loans, you are going to need to submit six months of bank statements and three months of merchant processing statements. 

Call 609-365-0001 for free consultation or APPLY HERE

Emergency Funding to Small Businesses Affected by Hurricane Matthew

All Small businesses affected by Hurricane Matthew are advised that IMN Direct Capital is currently offering funding in 24 hours. We will be processing applications starting October 10th for the next 90 days. There is no application fee and no down payment required. The application and supporting documents required can be submitted online.

There are limited funds so apply on first come first serve basis. Business must have been established for at least 3 months before hurricane and deposit at least $10k monthly

Hurricane Matthew is now making steady progress towards the Florida coast and is expected to make landfall at late October 6th. Hurricane Matthew's path is projected to wreak havoc along the east coast for the rest of the week with wind speeds reaching up to 140 MPH.  This will be the strongest hurricane to make landfall since Hurricane Andrew, which inflicted nearly $46 billion in inflation adjusted damage. 

Any questions please call:

Michael Corso

IMN Direct Capital

609-365-0001 

APPLY HERE

BUSINESS LOANS - OUR PRODUCTS WE OFFER

Line of Credit vs. APR Term Loan: Which Is Best For My Business?

If you’re seeking capital to run and grow your small business, you may be debating between a line of credit and a term loan. But how do these two financing vehicles work, and in what situation should you apply for each one? Here’s a closer look:

Business line of credit: A business line of credit is similar to personal lines of credit, such as credit cards or home equity lines of credit. You have access to a specific amount of financing—say, $50,000—but you don’t make payments or incur any interest until you tap into the funds.

Lines of credit can be secured or unsecured business loans (typically by inventory or receivables). They are often referred to as “revolving,” which means you can tap into them again and again. For instance, if you have a $50,000 line of credit and take out $25,000, you still have access to the remaining $25,000. If you pay that $25,000 back down to $0, you still have access to the entire $50,000 without reapplying.

A line of credit typically has a lower interest rate and closing costs than a loan of comparable size. However, if you’re late with a payment or go over your borrowing limit, your interest rate may increase substantially—unlike a term loan, where the interest rate stays the same for the life of the loan.

Term loan: With a business term loan, you borrow a lump sum of money, get it all at once and pay it back over a specific time period (or “term”)—it can range from a year to 20 years. Unlike lines of credit that are typically renewed every 1 – 2 years, a term loan is fixed for the specified amortization period. Lenders prefer loans to be collateralized, but there are options for unsecured terms notes.

You can select term loans with different repayment periods and with fixed or variable interest rates. However, you must begin repaying the loan immediately (even if you don’t use the money right away). Closing costs and interest rates for term loans are typically higher than those on a business line of credit. And, unlike a revolving line of credit, once you use up all the loan funds, you’ll need to reapply for a new loan.

Now that you understand how these financing options work, when should you choose a business line of credit as opposed to a term loan?

Term loan: Term loans work best for long-term investments. For instance, if you’re buying capital equipment or other fixed assets that will take several years to pay off, buying a business or doing construction, obtaining a term loan is your best bet.

In addition, term loans are typically used for a specific purpose: In order to get the loan, you’ll need to show exactly what you plan to use the money for and how that will help your business increase sales and profits. If your financial projections convince lenders that these changes will increase your sales and profits, the lender will feel confident that your business will be able to pay off the loan.

Here are some situations where you might use a term loan:

You own a pizza restaurant and want to expand into a larger space that just became available next door. You also want to add two wood-burning pizza ovens so you can serve upscale, Neapolitan-style pizzas (and charge more). The expansion and shift in positioning will take a while to pay off, and the pizza ovens have a usable life of 10 years. Therefore, it’s to your advantage to stretch out your payments to a long-term loan of 10 years.

You own a graphic design business and need to buy new computers for your staff of 30. Typically computers have a life of about three years, so a three-year term loan would be appropriate.

The longer you’ve been in business, the easier it will be to get a term loan, as banks want to see a track record of success.

Business line of credit: A business line of credit is sometimes called an operating line of credit, because its purpose is to help finance ongoing operating expenses. Think of a line of credit as an insurance policy providing a cushion of cash when you need it. That’s why the best time to apply for a business line of credit is before you need it—in order to get an unsecured line of credit, you need to prove that your business has healthy cash flow.

Business lines of credit are best for short-term financing needs, such as payroll, seasonal expenses or temporary cash flow shortages. Here are some situations where you might use a line of credit:

You own a landscaping business and have just completed several projects. You have a huge chunk of receivables due in a week—but you need to make payroll for your 20 employees in two days, and don’t have the cash on hand. You could use the line of credit to cover payroll, then pay it back as soon as your receivables come in.

You own a business selling fashion accessories from a kiosk, and a particular style of sunglasses is selling like crazy. You need to order more and your supplier is offering a great deal, but requires C.O.D. Use the line of credit to pay for the sunglasses, then pay it back as you sell them.

Be sure not to tie up your line of credit paying for long-term investments, or you won’t have access to it in an emergency, limiting your flexibility—which is the whole point of a line of credit.

Working with a company that’s experienced in matching businesses with financing sources can ensure that you find the perfect type of small business loan for you.

If you have further questions please call us at 609-365-0001

Do you have a business idea and trying to get off the ground

Do you need funding to get a great idea off the ground? Or, perhaps you’re already running a successful small business, but you have to relocate or you’re ready to expand. For whatever reason, you need cash. Major banks and lending institutions have never been known for rolling out the welcome mat to entrepreneurs and small businesses with no long-term track record (although according to the 2014 Small Business Success Study, small business owners report that they find commercials loans are a more attainable yet less desirable funding choice). This article provides a few start-up financing ideas. It’s also worth considering five additional alternative funding methods: crowdfunding, microlending, angel investing, peer-to-peer lending, and start-up incubators.

Crowdfunding is a collaborative funding model that lets you collect small contributions from many individuals (the crowd). With donation-based crowdfunding, represented by well-known brands like Kickstarter and Indiegogo, you collect money from individuals and offer them products, or one-time rewards, as perks for donating. With investment crowdfunding, businesses sell ownership stakes to investors who then get the potential for financial returns if a business is successful.

Microlenders make small loans, typically in the range of $5,000 to $50,000, to entrepreneurs who can’t get loans from traditional banks. Some microlenders focus on lending to specific categories or types of borrowers, such as women-owned or minority-owned businesses, or ethnic markets, such as Hispanic business owners, and they may also offer education and training to their borrowers.

Angel investors provide financing to small companies in exchange for an equity stake in the firm. Money received is an investment, not a loan, but angels will want a clear path to profits, either through a public offering or acquisition at some point down the road. As stakeholders in your company, angels are motivated to help you succeed, and may offer mentoring and management guidance to help achieve goals.

Peer-to-peer lending is the practice of packaging small amounts of money—from $25 on up—from many different individual lenders to provide directly to a borrower in the form of an unsecured personal loan. Over the past three years, peer-to-peer lending to small businesses has grown, and newly established companies with a few years of business under their belts may be able to seek loans of up to $500,000 for terms as long as 60 months.

Start-up incubators, many of which focus on the technology sector, support the development and growth of entrepreneurial companies. They offer resources that include physical office space and shared services, expert mentoring, consulting services, legal counsel, and seed money—anywhere from $18,000 to $150,000. Plus, you get networking access to investors and experts who can provide valuable guidance after you leave the incubation program. In exchange, the incubators may take a small equity stake in your company.

Four New Ways to Make the Most of Working Capital

The secret to surviving this Great Recession may turn out to be how you manage working capital--the difference between the money you've been paid and the cash you owe.

The good news is that clever startups are coming to market with big new ideas intended not only to change the way small businesses handle money, but in some cases to also cut out big, bad, TARP-grabbing traditional banks altogether.

"The market is beginning to understand how much value there is in unlocking what is not working in the financial infrastructure," says Aaron Patzer, vice president of the Personal Finance Group at Intuit and founder of Mint.com, the online personal finance site Intuit purchased last year.

Here then, is how to get the most out of next-gen working capital.

1. Put future sales to work
The old-school small-business dynamic of paying a bill by the agreed-upon due date or face usurious late fees is disappearing. BillFloat, based in San Francisco, is launching micro-credit for small business. Using investment and tech backing from online giant PayPal, BillFloat will provide as much as $1,000 of unsecured credit for 30 days to pay any bill.

BillFloat charges a flat rate for each micro loan. Fees during the current beta period, for example, are $4.99 per bill for a $50 loan and as much as $14.06 to pay a $225 bill. This fee combines a 3 percent monthly interest rate and a flat service charge per bill. Lendees have 30 days to repay and can extend terms as long as they notify BillFloat. Interest continues to accrue while the balance is outstanding.

Traditional banks also are morphing into financing innovators. Capital Access Network has created a product called AdvanceMe that provides working capital based on a company's estimated future credit card transactions. The outfit also reviews other factors--including whether a company has a minimum monthly credit volume of $5,000--before agreeing to provide a lump sum. The Scarsdale, N.Y., company says the approach lets firms with lower credit scores qualify for loans.

Clearly, new financing options like these will strain some small businesses. For example, as low-cost as BillFloat might be compared with charges for bounced checks, 3 percent per month works out to a near-Sopranos level of 36 percent annually. And financing tools like those offered from Capital Access Network require sophisticated accounting because, technically, the cash is not a loan, but a form of accelerated sale. Companies will need to think through options to be sure these deals make business sense.

2. Get your money faster
Considering all the innovation in digital technology and the web, small-business billing is still almost ludicrously old-fashioned snail-mail paper bills and paper checks or fast but pricey web-based billing and payment services. Now third parties are offering new ways to expedite inbound cash.

Invoicera, based in New Delhi, provides services like international billing, multiple payment gateway support, fiscal team management and automatic billing. Basic tools are free, and $10 a month buys access for as many as 25 users and more features. The system requires at least a working knowledge of accounting to use properly.

Bill.com in Palo Alto, Calif., offers a near-enterprise-grade billing and invoicing tool that extends to managing payroll and billing options via the web. "Small-business owners are beginning to demand the kind of controls they have in their personal banking tools from the business tools," says Jeff Schultz, Bill.com's vice president of marketing.

Traditional financial service firms are not far behind. Charge card giant American Express is betting on a new payment service that ties web payment options, financing and other services to small-business invoices.

The rub with all these is cost. American Express charges to manage receivables. Fees are complex and vary by amount and product used, but entry-level accounts cost 2.89 percent of each bill, plus 15 cents per transaction. Bill.com's service starts at $20 per month, plus 99 cents per check and 49 cents per electronic transaction. So firms must be careful not to get buried by these costs.

3. Lose the payroll, the paper and even the branch
BankSimple is angling to offer all the services of a bank without the actual building. The Brooklyn, N.Y., firm is establishing a web-based financial system that will offer free ATMs, automated money management, smartphone bank deposits and free online bill payment with what the firm claims are no hidden fees and far lower costs than traditional banks.

New banking hybrids are springing up fast. Austin, Texas-based MPOWER Ventures, through its prepaid debit card brand Mango Financial, recently opened its first "Mango Store" in Austin. A lower-cost alternative to high-priced check cashing, Mango's new retail location provides prepaid MasterCards, mobile money transfers and free alternatives to many financial transactions. The service gives small businesses not only new payroll options, but also lets their employees cash checks less expensively. Mango will offer payment options for small businesses looking to pay employees in cash. It hopes to open stores across the country on a march to become the Starbucks of next-gen banking.

PayNearMe is looking to do away not only with paper checks, but paper money, too. The Mountain View, Calif., company has pioneered the use of bar-coded vouchers, which any desktop imaging device can produce and which can be used to pay for anything from goods at 7-Eleven stores to rental cars from firms like Avis.

There are risks for these services. Fees are higher for working through third-party ATMs, and the tax implications are significant. The IRS likes to know where your money is.

4. Smarter point-of-sale 
For sheer innovation, it's tough to beat the changes coming at the point-of-sale. One of the most cutting-edge is Palo Alto-based Bling Nation, which is trying to deploy a system that lets small firms create on-the-fly loyalty programs. The cash-back and points system works through BlingTag, a fob that attaches to the back of any mobile device--no cash or credit card needed. The BlingTag lets merchants track purchases, reward customers and offer discounts almost automatically.

Firms like Plastic Jungle, meanwhile, are in the $30 billion market of uncashed gift cards. The San Jose, Calif., firm buys the remaining balances on unused or unwanted gift cards both from users and businesses, then resells this purchasing power to buyers using its Gift Card Exchange. Spreads range from 30 percent to 92 percent of face value, depending on the retailer and value of the gift card. "If you have gift cards on your books, this is a new way to get working capital," says Bruce Bower, CEO of Plastic Jungle.

Again, there are drawbacks. Bling Nation must work with existing credit card vendors, which can be challenging. And gift cards face steep competition from prepaid debit cards that replicate the gift card experience but can work with any retailer.

"All this activity does bring excitement to the market," says Patzer of Intuit, in Mountain View, Calif. "But getting from a good idea to a good business takes awhile."

Interested about alternative lending call us at 609-365-0001 or visit our website www.imndirect.net to see if your small business qualifies for funding.

Business Funding Options for Bad Credit Risks

For better or worse, your credit score has become your "SAT score" when it comes to financing. If you have a high score, you'll have a pretty easy time getting credit offers from a wide variety of funding sources. If your score is low or nonexistent, however, you won't.

But a low score isn't something you can run away from, and even if you avoid it, it won't go away. The trick is to fund your business in ways that actually get your score back on track so when you're ready to move your business to the next stage, your score will start opening doors rather than getting them slammed in your face.

Here are some ideas for entrepreneurs with low scores who are faced with funding challenges:

1. Look beyond credit cards and bank loans for financing. Studies show that credit card and bank financing account for just 25 percent of the total funding needs of early-stage entrepreneurs. This statistic should provide you some comfort, because it implies that 75 percent of the money you need can come from other sources that rely less on your credit rating.

While there are credit cards and lending programs designed for individuals with poor credit, these options will typically charge a higher interest rate to compensate for the credit risk posed by a sub-prime borrower. One bank option for those with poor credit scores is a home equity line of credit, though I'd be wary of putting your home on the line to finance a risky early-stage venture.



2. Seek loans from your relatives and friends. Everyone likes the idea of entrepreneurship, which may be why, at some point, more than 50 percent of all business owners get financing help from friends and relatives. Chances are, your relatives and friends want to see you succeed and may be able to help make your business dream a reality. They also may not dwell on your poor credit score because they trust you, or they believe your business concept to be sound. (Banks used to evaluate your character and business conditions the way family and friends still do, but credit scoring models have made lending decisions more automated, resulting in the critical power your credit score holds over you.)

If you follow the advice I have shared in previous columns on identifying private lenders and understanding their risk profile , you should be able to get access to cheap, quick and patient business capital. Also, you can now use private loans from relatives, friends and business associates to rebuild your credit score if you use a loan management company to service the loan and report payments to credit bureaus.



3. Investigate microlenders and web-based lenders. There are several nonbank lenders on the internet that now offer microloans to entrepreneurs. These loans are typically in the $5,000 to $25,000 range. Some of these sites are excellent sources of capital for those with poor credit and will also report your payments to credit bureaus which can help raise your credit score if you make timely payments. Be sure to shop around and compare rates since each site offers a twist on how they price loans and spread risk to their lenders/investors.

For a FREE Consultation just call IMN Direct Capital at 609-365-0001 we would like to hear from you to explain how you can get approved. Or just visit us at www.LoanBizSolutions.com

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