Approximately 80% of small businesses in the United States fail in the first five years and many times it is due to them being undercapitalized and being unable to qualify for a bank loan.
In many instances, smaller companies suffer through periods of low financing due to slow payments from clients. Often, they are faced with paying for inventory, months ahead of the sales season.
For many companies, the solution in inventory financing or short-term debt. As credit standards tighten during coming months, these resources may be drying up.
Also, many business owners are reluctant to provide personal guarantees for collateral loans. At the same time, they are reluctant to disclose many of the intimate details about their companies and themselves.
Summit Funding Group, LLC is offering a new way to receive the business capital that may be used to sustain or grow a small or medium-sized business and it doesnt require visiting a bank for a loan. The process is quick, hassle-free and firms can receive their monies in as little as 7 business days.
Securing a bank loan generally requires the providing of collateral and a personal guarantee, as well as going through a lengthy process in which the business likely has to submit financial statements and tax returns, as well as completing long applications.
In a new wrinkle on the factoring concept, Summit Funding Group, LLC, a Los Angeles, CA company, provides capital businesses need for growth and expansion without going through the long, difficult and often torturous bank process. The company works with qualified business owners who are defined as those that:
Accept MasterCard and Visa payments for their products/services
Do over $5,000 in credit processing each month
Have been in business for 6 months or more (but possibly as little as 2 months)
According to Michael Mansori, Chief Operations Officer of Summit Funding, a business owner is asked to fill out a brief application form, submit the last four months of credit card processing statements, a voided check, copy of their drivers license, and the articles of incorporation for their business. This information is reviewed and within less than three business days, the owner will receive an answer with the amount of money that Summit Funding is willing to provide to them and the payback terms.
Rather than a monthly loan payment, the payback will occur as part of the credit card processing from each business transaction as a part of the net revenue. Summit Funding Group LLC will assist the business in switching to one of their preferred credit card processing (nationally recognized names) and the two parties will agree on a percentage (typically 10-25%) that that will be deducted from the revenue amount of each transaction and sent to Summit Funding via the new processor. When the company's loan balance reaches zero, electronic debiting will cease (generally about 6 to 8 months).
Therefore, theres no monthly payment to make, nothing shows up on your credit report since its not a loan, and theres no personal guarantee or collateral to put up in advance of getting the money needed. To find out more information, receive a risk-free/cost-free proposal or to apply, please visit http://www.summitfundinggroupllc.com/promo