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    4 Replies Latest reply on Dec 5, 2008 3:59 PM by Chris.Black

    Those merchant card loan thingis... -_-

    ILoveHaru Newbie

      Ok, so they give you the money and takes percentage + interest every card transactions....

      Too good to be true or just another hoax?!?!

      Please advise~ Thanks
        • Re: Those merchant card loan thingis... -_-
          Bluesuit Adventurer

          Not sure I understand your question. Can you please rephrase it?
          • Re: Those merchant card loan thingis... -_-
            LUCKIEST Guide
            Those merchant card loan thing

            Who are you?? Where are you?? What are you talking about??

            Please advice on what??
            • Re: Those merchant card loan thingis... -_-
              Lighthouse24 Ranger
              It sounds like you're talking about a merchant loan - where you borrow against future credit card sales. Certainly not a hoax, but not necessarily one of the best ways to borrow money either (in my opinion).
              • Re: Those merchant card loan thingis... -_-
                Chris.Black Newbie
                ILoveHaru:

                It sounds like your refering to a merchant cash advance. It is not another hoax. Basically, lets say you make $10,000 in credit card sales a month, this would qualify you for $12,500 advance. So you borrow the $12,500, and are given a 1.3 factor rate (ranges from 1.20 to 1.45). This means your overall pay back would be $16,250. You set up repayment for 9 months. $16,250 over 9 months is approximately $1,805.55, a month. $1,805.55 out of your original monthly sales of $10,000, comes out to about 18%. So your hold back percentage would be 18%. Generally, you will pay 18% of your daily credit card sales to pay off the advance. If you make $500 on one day; $90 would go towards your advance, $410 would go to you. If you make $1000 on another day; $180 would go towards the advacne, $820 would go to you. Basically if your sales go down to $5000 one month, you will only pay $900; if your sales go up to $20,000, you pay $3,600. Let me know if you have any further questions.

                Chris Black
                Making Obstacles Manageable, Inc.
                (866) 942-9199 ext. 223
                www.ourbusinessloan.com
                cblack@m-o-minc.com