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PRZOOM - /newswire/ -
New York, NY, United States, 2010/10/22 - Paramount Merchant Funding is now offering new information about the average business owner’s need for a business cash advance in the current economy.
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Paramount Merchant Funding, a company that specializes in merchant cash advances for small business owners, in a statement released this morning from their New York City offices, offered some new information about the average business owner’s need for a business cash advance in the current economy. In an interview conducted as they were rolling out their new website, a company spokesperson was asked about small business needs, the definition of cash advances, and how they differed from regular bank loans.
“The need for available funding is one that was created by banks and lending institutions refusing to offer credit lines to retail businesses,” said the company spokesperson. “Their mistakes in recent years in the areas of bad mortgages and loans have created an internal situation for them where they almost can’t lend money to anyone with less than perfect credit. That’s a way for them to cover themselves, but it hurts the average business owner who has invested everything they have into keeping the doors open. That often results in a lower credit score, so how can you use that number to determine whether they are a good risk for a loan or not?”
The burst of the housing bubble in late 2008 and subsequent recession has been blamed by many on the banks issuing bad loans and high risk adjustable rate mortgages. Though definitely a contributing factor, most experts agree that the continued poor economic climate is due more to a lack of consumer and business spending than any actual financial crisis. Paramount Merchant Funding has created a system which will allow business owners to tap into capital they need to get the wheels moving once again. Their company spokesperson explained further.
“A cash advance is very different from a loan because its money issued against future sales. Instead of looking at credit score, which only tells us about someone’s past, we look at credit card sales numbers for the months immediately previous to the merchant cash advance application. Those numbers tell us about the present situation of the applicant, not their past which is most likely filled with past due bills that they are paying off now that their business is up and running. In many cases, the merchant funding we provide them with is used to pay off those old debts and restore their credit rating. In other cases, the merchant financing is invested into expansion, giving the applicant some breathing room. We take our payments as a set percentage of future credit card sales, so they don’t have to worry about late fees or having to come up with money they don’t have. It’s a much more intelligent way to do business.”
The new website rolled out by Paramount Merchant Funding this morning explains more in detail what a merchant cash advance is and how it can benefit a new business or one that is established and either struggling or looking to expand. The cash advances provided by Paramount don’t have any stipulations on them as far as use is concerned, so the potential benefits are unlimited. For more information, call the number below or visit the Paramount Merchant Funding website.
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info[.]paramountmerchantfunding.com 
