5 Reasons Why You Should Consider a Business Cash Flow Loan
By- Victor Talha
Small businesses and/or start-ups are heavily reliant on their cash flow…
…as they often have difficulty regulating what comes in and out on a regular basis but it’s also not uncommon for mid-sized businesses to run into difficulties that require a business cash flow loan. Here are some reasons that you should consider getting a business cash flow loan for your business.
1. Bank Loans are Harder to Get.
The recession hit the nation hard and changed some ideas about borrowing and lending. Cash flow loans are easier to get than traditional bank and business loans and don’t have the same requirements for credit.
2. It Doesn’t Require Collateral.
A cash loan is different because a business can use it for working capital and generate the collateral for the loan over time.
3. It’s an Opportunity to Organize.
Many cash flow providers request to see cash flow charts and collect data about a company’s banking, payment processing, and accounting information before acceptance. If your finances are not completely organized before you go in to ask about a cash advance you should take the opportunity to balance your books and get on top of the situation. Plus, you can get comparative ranking information from your loan provider.
4. The Interest Rate is lower than You Think.
Many people think that the interest rates for a cash advance may be up near 50% but the actual rate is consistently below 30%. Right now businesses are trying to encourage lending and the average has moved even farther down towards 20%.
5. It’s also Less Risky than you Think!
There are a lot of misconceptions about borrowing cash advance loans, especially from misuse in people’s personal lives. Businesses can use this money responsibly to make ends meet, expand for better customer service, and balance their cash flow. At OCM Financial Group, we understand the unique reasons you may have behind obtaining your business loan. Allow us to meet your needs with one of our custom cash flow loan products. Your approval is just minutes away!
The Neighborhood was Saved by a Merchant Cash Advance
By – Raquel Ellen Donate
Not too long ago, our neighborhood was almost without a pizzeria! Thanks to a smart and savvy local chamber of commerce member, the neighborhood was saved by a merchant cash advance. Sounds like this was no big deal, right? Well it may not be a big deal where you’re from, however, in my neck of the woods, we don’t care too much for the big name pizza franchises. Instead, we love our Romano’s Pizzeria, so much so that me and my family have been eating here since our grandfather’s time. Now, thanks to a merchant cash advance, our favorite pizzeria and Italian restaurant was saved from having to close it’s doors.
We are not certain what went wrong, however we are sure this deep recession did not make matters better. After a few slow seasons, the owners had to put up their house in order to get a small loan to survive the dry spell on business. The recent harsh winter season was another nightmare along with broke down ovens and a few other essential items needed to run a successful eatery. After the winter was over, our neighborhood was in such dismay. Rumors had spread like wildfire stating that the owners of Romano’s were calling it quits! Let’s just say, everyone from the children all the way up to our grandparents were stricken with disbelief at the thought of losing everyone’s favorite pizza joint since the late 60’s. Some folks even set up a charity donation box. But it was just a drop in the bucket compared to the almost 6 figures it was going to take to save Romano’s.
Then one day, at a local chamber of commerce meeting, a gentleman was there from OCM Financial Group doing a seminar about how banks are getting tougher and stricter about lending any money out and how OCM Financial was able to get business owners the money they needed in less than a week! Attending this meeting, was one of the owners of Romano’s. Quite serendipitous to say the least! Soon after the presentation was over, the business finance specialist was passing out his business cards when the Romano’s owner asked if he could apply for a merchant cash advance to save his restaurant, and the rest, as they say, was history. Less than 6 days later, Romano’s was able to order a new oven and fix the broken one. Success! Neighborhood pizzeria saved and the tradition lives on!
The Heartbleed bug has sent a shock-wave through the Internet, as millions of users try to take stock of all of the accounts they’ve ever created and figure out how to change their passwords. Too bad their passwords are just the beginning of the problem.
Given the reach of Heartbleed and how long the bug existed, it’s hard to even say how much data unscrupulous hackers could’ve gotten their hands on and, because of how it worked, we’ll probably never know. Most people are changing their passwords on affected sites, sitting back and thinking (or hoping) they’re safe. But now is when the work really begins for a large group of scammers. Since many websites ask you (or even require you) to use your email address as a username, that information is also vulnerable to the Heartbleed bug.
Welcome to the beginning of phishing season. Phishing (and the other “ishings,” like vishing for phone scams and smishing for text scam) is a more time-consuming method of extracting the goods from you, but it is often more directly profitable.
With information about where you have accounts and your email address, it’s easy enough to send you a phishing email that looks like it’s coming from Tumblr but leads you to “update your credit card” with a site that is definitely not Tumblr. And it’s not just your email address you need to worry about.
You wouldn’t believe how far phone scam artists can get with just a little information and the right tone of voice. Plus, while more and more people are texting, many newcomers to the technology haven’t even considered the possibility that the link in the text that is supposedly from “your bank” or “your mobile company” leads you to a site that puts malware right under your thumbs.
If a phisher reeled in or bought information of yours – like emails, addresses or phone numbers — compromised in the Heartbleed hack, what should you watch for?
1. Any emails from companies imploring you to “click here” to change your password or update your account information.Companies are learning not to do this precisely because it’s such a common phishing and spear-phishing tactic.
You should try to pre-empt any such email by going straight to the affected websites once they’ve implemented the Heartbleed fix. But if you don’t, or didn’t, and get worried by the email, take the extra few seconds to open up a new tab and (correctly) type the website’s name into your browser.
2. Any phone call that promises to fix your problem but only if you give them passwords, account access or a credit card right now. Phone phishing (or vishing) scammers rely on two things to succeed: your fear that you did something wrong or are in some sort of trouble; and their ability to project authority and the ability to fix it.
If someone calls you and wants any information and won’t allow you to get off the phone to call back the customer service number you find on your own, they aren’t legit.
3. Any text message from an unknown number. Don’t open links and pictures or call any numbers you just don’t recognize. Text-message phishers (known as smishers) use our own Fear Of Missing Out (FOMO) to draw us in and take advantage of us.
4. Any calls from weird numbers, especially if your cellphone isn’t widely known. I assume that there are (mostly young) people who often get calls or texts from numbers they don’t know after a night — or several nights — out.
But for the rest of us, we probably hoard our cellphone numbers closer than most of the rest of our personal information, if only to avoid overage charges. So if you suddenly start getting calls from numbers you don’t know, don’t let the FOMO lead you down the wrong path.
Let them leave a voice mail: just because you can pick up doesn’t mean you have to. Technology has made a lot of things more convenient, but it’s also made the cleanup of a major security flaw like Heartbleed incredibly difficult. In the face of such a global issue, simply changing our passwords is like using caulk to seal a crack in the Hoover Dam.
Bugs and breaches, hackers and phishers are the new norm and we can no longer assume that technology will bail us out or “it won’t happen to me.” It is critical that we change the way we think about security and realize that in the end that each of us must be more vigilant and aggressive in our cyber self-defense.
Thinking of Offering Obamacare Insurance to Your Employees? You May Qualify for a Small Business Tax Credit
The deadline for Obamacare enrollment is right around the corner, which means that it’s likely you are getting bombarded with questions from your employees as to whether or not you will be offering affordable insurance.
If you are thinking about offering insurance to your workers, then you may be pleased to learn that you may actually qualify for a small business tax credit. What does this mean for you? Reduced tax liability and reduced payments overall.
This year’s Obamacare tax credit can be as high as 50 percent of your premium payment. But as great as that sounds, as with all good things, there’s always a catch.
You get a 50 percent tax credit on premiums for up to ten employees. This number goes down as the number of your employees goes up. Once you hit 25 employees, you can kiss your credit goodbye.
Additionally, your employees will be eligible for a subsidy on their premiums. As a business owner, you will not.
And, let’s not forget the endless paperwork you need to submit – all on paper (for insurance on the federal exchange) because online submissions are not available.
So if you are thinking of offering Obamacare coverage to your employers, you might actually stand to lose more than you gain and may need to seek a cash advance for working capital just to cover your own expenses.
Sound tedious? We certainly think so.
Regardless of what you decide, you can know one thing’s for certain. OCM Financial Group is here to help you if you exceed your cash flow. Our merchant cash advance options can provide you with the working capital you need to ensure your valuable employees obtain insurance coverage while at the same time, protecting yourself against liabilities.
How Much Working Capital Do You Need for Your Business?
As any small business owner knows, you need to have a sufficient amount of working capital in order to effectively carry out your company-related endeavors. By definition, working capital is the amount by which your assets exceed your liabilities. But how can you determine the amount of working capital your particular business needs?
For starters, the amount of working capital your business needs should be (at the very least) sufficient enough to pay your business expenses. Should you be thinking about a profit? If you are starting out, then you shouldn’t worry too much about profit just yet. It can take a few years to accumulate enough cash flow to surpass your basic payment needs. But you should, however, be thinking about how you will pay your immediate expenses.
Overall, you should determine what your fixed costs are (rent, utilities, payroll, taxes, etc.) then add at least 10-15% extra to cover any miscellaneous costs. It’s always good to give yourself a cushion because you never know when you might find yourself in a sticky situation.
Figuring out how much working capital you need also depends on whether your clients pay you immediately or if you offer a grace period. In that case, you need a greater amount of cash reserves to account for any delay in payment.
But if ever you do find yourself exceeding your limits, you don’t necessarily have to panic.
The OCM Financial Group helps small business owners obtain the cash flow they need when they need it. Think of our company as the other cushion that will break your fall when your liabilities exceed your assets. If you need working capital today, give us a call so we help you keep your business running effectively.
During these current times of financial instability and economic volatility, it’s refreshing to know business owners have business cash loans options available, still. Although traditional banking has been a strong foundation for most businesses in America and just about anyone with a strong business plan, collateral, and verifiable references could secure a small business loan. Not so much the case anymore. To truly understand how tough it is out there, currently, we turned to the most reliable sources, our present applicants, to gather real life information on the current status of small business owners trying to obtain business cash loans.
Here’s a case in point, take Joel M. for instance. Joel has an extremely amazing business model that not only helps kids stay out of trouble, but Joel’s company actually helps inner city youth discover all there is to know about the NFL! Kids in grades ranging from K-12 and college level get to train with the pros and through rigorous training modules get a chance to be considered for recruitment. Pretty amazing working with kids and keeping them off the streets, right? Well, you’d imagine any bank would gladly see Joel’s business as a sound investment. Even besides the fact, Joel only needed to borrow approximately $8,000 to $10,000 USD for purchasing training equipment for his students. Going to the two banks he has investments in, turned up denied bank loan applications. When a family friend told Joel about the OCM Financial GroupFacebook page, Joel searched immediately for the contact number. Soon enough, after speaking with a Financial Advisor and pinning down a few sound options, Joel was enjoying his $10,000 business cash flow loan. Payback terms were generous and will be easily managed. When asked if he would refer OCM Financial Group to his friends and family, Joel replied, “I will tell the country about your company. Thanks so much for saving my business, helping my kids get their sports training equipment, and helping me meet my business’s growing financial needs!” Another success story!
To view a related video on Business Cash Flow, click on link below:
Starting a new business can be exciting. Choosing your location, branding, and even your business cards can be an adventure. You may have dreams of opening up a small local boutique or perhaps fantasize about creating a chain of trendy restaurants. But no matter what your business goals may be, your dreams of entrepreneurial success can be dimmed if you don’t have enough capital.
Not everyone can be approved for a business loan, and in this stagnant economy, it can be years before you are able to save enough money on your own to venture out and build a company with your own funds. Luckily, there is another option to obtain the funds you need now to get your business off the ground and running. If your business processes credit card transactions, you may benefit from a Merchant Cash Advance. Now, there are even merchant cash advance options for businesses that don’t accept credit cards yet. This type of program is based on ACH banking history which is beneficial if your credit rating is not acceptable for traditional loan qualifications.
A merchant cash advance is a way for business to receive the capital they need in exchange for a percentage of their credit card income. There are several benefits, including the fact that you don’t have to put up collateral, as you would with a traditional loan, can be written off as expenses giving you a tax break, and best of all, you get your funds quickly after approval. The OCM Financial Group offers more than just these standard benefits for merchant cash advances. You only have to pay us back when your business process your credit card sales and we offer flexible repayment systems so you can have greater control over your assets. The application process is easy and quick, and you could have your cash at hand in as little as a week.
So if you have been denied a loan application or just don’t want to go through the hassle of applying or getting stuck with huge interest payments, give us a call today to discuss how our merchant cash advance program can help you and your business succeed.
Whether you are starting a new business, are looking to remodel your current corporation or are embarking on a new project, you may need new equipment that will get the job done quickly and successfully. Businesses don’t usually purchase this equipment because of the cost and generally because some types of equipment are not needed on a continual basis. So, most companies lease their equipment. In fact, statistics show that 85% of businesses in the U.S. lease either all or some of their equipment, from software to office furniture to bulldozers.
Leasing equipment has many benefits. For one, if you do not have a large amount of liquid capital available for a purchase or don’t want to spend much money on an investment, leasing is ideal for you. Leasing is also beneficial because you don’t have to make a huge lump sum payment. There are flexible payment options to suit all types of businesses and all sizes. Another benefit is having the ability to continually upgrade. If you invest in a piece of equipment, it can easily become obsolete in a few years. Then, you’ll have to reinvest a ton of more money into another huge purchase and the vicious cycle continues. Leasing allows you to always have the latest, state-of-the-art technology to keep your business running smoothly.
If you have been thinking about business equipment leasing, the OCM Financial Group is here to help. We offer finance options from $5K upwards and with flexible payment options to meet your individual needs. Give us a call today to discuss your best leasing options so we can help you obtain the tools and technology to help your business grow.
Ever been tied up for money and couldn’t obtain a loan? Have you been trying to start up a new business but didn’t have the resources? Sick of waiting around for a pay day? If so, you are not alone. Millions of people in the United States are suffering economically, especially corporations, but that doesn’t mean you have to accept it. There are ways to obtain working capital for your business needs. But what exactly is working capital?
Working capital is defined as the difference between your liabilities and your assets. Basically, the amount of liquid funds you have at your disposal. Everyone needs working capital to stay afloat, whether you are dabbling in entrepreneurship for the first time or have amassed a world-wide company chain. The amount of working capital at your disposal influences your business’ ability to meet both short and long-term demands, pay back debts, and remain in profit.
Some companies require more working capital than others, but it’s safe to say that if you’ve got a business, no matter what kind of products you offer, you need liquid capital and you need it readily available. But if you’ve recently paid off a big loan, are tied up in a lawsuit, or are facing a foreclosure, chances are the amount of working capital you have isn’t going to be expansive.
That’s where we come in. The OCM Financial Group can work with you to find a flexible and creative solution to your financing needs. If you need cash now, we can provide it. Whether you are a seasonal or cyclical corporation, are rebuilding your brand or are starting fresh, let us help fund your imagination and help your business grow.
The end of the year is a busy time with lots of holidays, get-togethers with family and friends and year-end work deadlines. It can be easy to forget to make some time to review your financial situation and make sure you’re on track this year and you’ve got the right plan in place for reaching your personal financial goals in the coming year.
What Steps Should I Take Now? There are several different financial moves you should consider before ringing in the New Year.
Take a good look at your budget. Now is the time to review your budget in detail. Are you meeting your savings or debt reduction goals? Are you spending more than you make? Is there a big expense coming up in the next year or so? If your budget isn’t synching up with your income, look for places to lower your expenses. If you’ve got more money than expected or receive a year-end work bonus, consider paying down any debts or increasing the amount you’re saving.
Review your retirement plan. Whether you have an individual plan or are part of a plan at work, take some time to review your investments and make sure they’re performing well and your savings are on target for when you plan to retire. If retirement is coming up in the near future, it may be time to rebalance your investments to minimize your risk. If you’re just starting out, consider increasing your plan contribution while your expenses are lower.
Check your flexible savings account balances. If you have a flexible savings account (FSA) to help pay for dependent care or health care, you should file all your claims before the end of the year. For some accounts, you lose any money you don’t spend on eligible expenses before the end of the plan year. Ask your employer or plan administrator to find out if you need to spend down your FSA before the year ends. If you have a high deductible health plan and a health care savings account (HSA), however, any money left in your account carries over to the next year with no penalty.
Make sure you’re paying enough taxes. If you got married this year, got a raise or if you earn income from freelance work or cash tips, the amount of income tax you owe may be higher than you expect. The IRS has a calculator that can help you determine your tax liability or you can talk with a financial planner. If you will owe more than expected, start saving now to cover the difference.
Start gathering your tax documents. It might seem early, but it’s a good idea to start to gather the documents you’ll need to complete your taxes next April. Though you probably won’t get your W-2 forms until next year, you may start receiving year-end investment statements, property tax and insurance statements and documents you’ll need for deductions, like mortgage interest statements. You can also start getting together business and real estate expense records and receipts and supporting documents for charitable deductions.
Taking the time to get your financial situation in good shape now can pay big dividends in the coming year.
If you’re struggling with a large amount of debt, the ads you see on TV and the web promising to settle your debt for a fraction of what you owe might sound very tempting. But before you decide to try this option, it’s important to understand the process, the often-high fees involved, and the effect this decision can have on your financial future.
What is Debt Settlement? Debt settlement means that either you or a debt settlement company working on your behalf negotiate with each of the companies you owe money to in an effort to get your creditors to accept a portion of what you owe as payment in full.
Usually, a debt settlement firm will have you stop paying your creditors and pay the firm a monthly amount that they will hold until you have enough to make a lump sum payment to pay off a creditor.
The Downside of Debt Settlement
Debt settlement can hurt your credit score. While your score may have dropped because you have been making late or incomplete payments, because you stop making payments for a period of time as part of debt settlement, your credit score will take an even bigger hit. Some financial experts warn that settling your debt for less than you owe can also damage your credit score.
Fees can be very high. Many debt settlement firms charge an upfront fee plus a percentage of your total debt or of the amount your debt is reduced by.
You’ll owe taxes on the debt you don’t have to pay. The difference between what you owe and what you pay through debt settlement is typically considered to be income by the IRS. That means you will have to pay taxes on that amount.
Not all debt settlement firms are trustworthy. The industry is not regulated by the federal government and there are scams where firms collect money from you but never settle your debts, so you need to be very careful.
Your creditors could sue you. During the period when you stop paying your debts, some creditors may file a lawsuit, garnish your wages, and put liens on your property.
Other Debt Solutions to Consider
Debt consolidation can be an option. You take out one loan and use that money to pay back all your other debts. You then make one payment per month on that loan, rather than juggling multiple payments from many creditors. In some cases, the interest rate on the debt consolidation loan is lower than it was on your individual debts, which can save you money in the long run
Ask your creditors to lower your interest rate. If you can afford to make at least the minimum payment on your debts, contact each creditor and ask for a lower interest rate or see if they have any options to help customers who are struggling with their debts.
Borrow from savings or family. If you have a 401(k) or IRA, there are some situations where you can borrow money from those accounts, but be sure to find out what the tax consequences and fees are. Family members may also be willing to lend you money to help you get out of debt.
According to a recent report, more than 11.6 million adults in the U.S. were victims of identity fraud in 2011. That’s a 13 percent increase in victims in the past year. To protect yourself from the frustrating and potentially financially damaging effects of identity theft, you should be on the lookout for a number of signs that someone may have accessed your personal or financial information.
Signs You May Be an Identity Theft Victim
The most obvious and common sign of identity fraud is charges you did not make showing up on your credit or debit card statement, but there are other, more subtle signs you should also watch for, including:
You receive calls from creditors or collection agencies related to merchandise or services you did not purchase.
Your credit card is declined though you know your account should be in good standing. Contact the card issuer immediately to find out if someone else has run up debts on your card.
You don’t receive your credit card bill in the mail. Someone may have stolen your information and had the statements rerouted to their address.
You receive bills for medical services you did not receive. Accessing personal information through medical records is another form of identity theft that’s on the rise.
You receive a credit or debit card you didn’t apply for in the mail or you receive bills for credit cards you don’t hold.
You’re denied a loan or credit card or offered a higher interest rate even though you’ve always had good credit. This could be a sign that someone else has opened accounts using your identity and run up unpaid debts.
Your credit report contains false information such as wrong addresses, employers, Social Security number, name, or other personal information.
Your credit report includes inquiries from businesses or credit card companies you do not recognize. This could be a sign that someone is using your identity to apply for credit or loans or open bank accounts.
You receive a notice of change of address or mail hold that you did not request from the post office.
Protect Your Identity and Your Good Credit
A few simple precautions can help you lower the risk of becoming an identity fraud victim.
Check your bank statements and bills carefully each month and alert the bank or company immediately if you find charges or changes you did not make to the account.
Guard your personal information. Don’t post phone numbers or other key personal information on your Facebook or other social media account. Don’t write your Social Security number on checks or carry it in your wallet. Shred old financial documents and unwanted credit card offers.
Surprisingly, a high percentage of identity fraud is committed by friends or family, so don’t leave your wallet, checkbook, or other sensitive information lying out at home.
If you use your computer for banking or paying bills, make sure you have a firewall and good virus protection program installed. Choose strong passwords for your online accounts and don’t use the same one for all accounts.
If you’re in the market for any type of loan or would like to open a credit card account, it’s important to know what factors lenders consider when deciding whether or not to give you credit. With that information in hand, you can work to put yourself in the best possible financial position before you apply.
Your credit history: The easiest way to define credit history is how long you’ve had credit and how well you’ve handled it. The longer you’ve had credit, the better.
Lenders look for a consistent history of paying your bills on time. They don’t just look at credit card or loan payments. Lenders may also check to see that you’ve paid your phone, cable, cell phone, rent and utility bills on time. A pattern of late or missed payments makes you less creditworthy in most lenders’ eyes. While some may still offer you a loan or credit card, your interest rate will be higher than a person with a better credit history.
How much money you make: Lenders compare how much you earn each month with your living expenses and debts, such as rent or mortgage, utilities, food, other loan payments and so on. How much money you have left after paying these bills helps them decide if you have enough income to take on more debt. Many lenders look for a debt ratio (how much you earn compared to how much you owe) of less than 40%. For some types of loans, you will need to provide proof of your income, such as pay stubs or tax W-2 forms.
How much credit you already have and how much you’re using: Another key factor lenders consider is the amount of available credit you have and how much of that you’re using. If you have several credit cards with high limits, even if you’re not using all that credit, a lender may consider you less creditworthy because you could use that credit and then have difficulty making payments on a new loan or credit account. Lenders are also wary if your balance is close to your credit limit. Some experts suggest using no more than 30% of the credit available on each card.
What types of credit you have: Lenders like to see a mix of different types of credit, including mortgages, car loans, credit cards, school loans, and personal loans.
How many recent credit applications you’ve made: Some lenders see applying for several new credit cards at once as a sign that you may be in financial trouble. Many do not, however, worry about recent applications for mortgages, car, or student loans.
Available collateral: In some cases, a lender will allow you to use property you own, such as a car or home, to secure a loan. It’s important to remember, however, that if you use collateral to get a loan, if you do not make your required payments the lender can take your home or car as payment on the loan.
If you’re not quite up to par in any of these areas, before applying for credit, take some time to get your finances in better shape. Pay down credit card balances, make all your payments on time, and cut your expenses if possible.