Wall Street Journal Tightens Business Credit

NEWS FLASH. Credit markets tighten. From the Wall Street Journal front page Tuesday, January 22, 2008. "In particular, start-up and smaller companies are finding that banks are setting higher rates, seeking more collateral or lending smaller amounts." This is actually good for us in the cash advance industry. As traditional banks tighten up small and medium sized businesses will have to turn to alternate sources of fianancing like the merchant cash advance to get funds for cash flow and expansion

Cash Advance Minimums to Rise to $10,000

Tired of chasing all those small deals? Don't worry, you won't have to starting soon. Many of the cash advance "banks" are planning to raise their minimums to $10,000 per month in credit card processing volume in the near future to get deals funded. This means that a lot of the marketing that targets low-end customers will no longer be as viable. It also means that the banks that continue to do deals in the low end, say $2,500-$5,000 a month in credit card processing will get more business. I see cash advance banks that take the smaller deals as developing stronger relationships with ISO's as it makes more sense to do most of your deals with one bank that can handle all your business.