Alternative Business Lending With Steve Sheinbaum on #BusinessFuel

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This past friday, I joined in on Lendio’s #BusinessFuel on twitter, a twitter chat that is held weekly. There were many alternative business lending experts in attendance including Steve Sheinbaum, the CEO of Merchant Cash and Capital. He was the featured guest and the questions were directed at him for the last half hour. I’ve created a storify summary below with all of the important pieces:

Alternative Business Financing

A small group of experts got together on Lendio’s #BusinessFuel twitter chat to discuss alternatives to banking with Merchant Cash & Capital’s CEO, Steve Sheinbaum

Storified by Sean M· Mon, May 27 2013 10:13:11

While we are waiting for Stephen to join us … Let’s start today’s chat off with a question by @MikeAlder801 #BusinessFuelLendio

QUESTION 1 ———–>

@Lendio Why is it that more small business owners are turning to alternative lending? #BusinessFuel #SBO #AlternativeLendingMike Alder

QUESTION 1 ———–>

@MikeAlder801 Is it because chances of securing needed funding are higher than with the traditional methods? #BusinessFuelKenny_Caldwell
@MikeAlder801 Regular banks and credit unions are extremely risk averse, and they hesitate with anyone less than perfect. #businessfuelTyson Steele
@Rapid_Capital I hear some banks can take months to deliver. Alt. finance can literally take a day. + it can be done online! #businessfuelTyson Steele
@MikeAlder801 I think there’s an easy answer here. There is still no traditional lending market for biz loans under 250k #businessfuelSean M
@Lendio Alt Financing is about cash flow. Your credit score doesn’t matter as long as you’re making money. #businessfuelTyson Steele
@RobertFSteele It’s not even about having perfect credit. Business loans under 100k aren’t even profitable to a bank. #businessfuelSean M
@Lendio I think it also has to do with time commitment before receiving funds. #BusinessFuelRapidCapital Funding
@financeguy74 I hear the lending process takes so much time and effort, the ROI is only good for 250k+. Crazy. #businessfuelTyson Steele
@financeguy74 @MikeAlder801 Definitely a challenge. Banks want to lend to more established less risk adverse businesses. #businessfuelLendio

QUESTION 2 ———–>

How is it profitable for alternative lenders then? @lendio @financeguy74 #businessfuelEesha the Cat

QUESTION 2 ———–>

@BeebsCat It’s a high risk/high reward play by Alt lenders. #businessfuelJoel Jensen
@BeebsCat Easy. They charge more and spend less on underwriting. #businessfuelSean M
@MikeAlder801 @Lendio is it because it’s quicker nad easier? #BusinessFuel.jdkartchner

QUESTION 3 ———–>

@Rapid_Capital @Lendio would you say that start up companies are the ones most suffering from trying to find financing? #BusinessFuelMike Alder

QUESTION 3 ———–>

@MikeAlder801 @Lendio Yes – Without a business credit or revenue history its difficult to find a lender to take the risk. #BusinessFuelRapidCapital Funding

QUESTION 4 ———–>

Let’s discuss the benefits of alternative financing options. What do you think are the benefits? #businessfuelLendio

QUESTION 4 ———–>

@Lendio Alt Financing is about cash flow. Your credit score doesn’t matter as long as you’re making money. #businessfuelTyson Steele
@Lendio When selling future sales: no collateral, no fixed payments, no timeframe, fair and poor credit friendly, etc. #businessfuelSean M
#1 benefit: Giving business owners access to capital so they can grow their businesses and fuel the #americandream #businessfuelLendio
@Lendio Traditional factoring is great: cash upfront, no worries about defaults, no collection cost overhead #businessfuelSean M
@RobertFSteele @Lendio Is there a limit to the amount of financing you can get through alternative financing? #BusinessFuel.jdkartchner
@Kenny_Caldwell Exactly. If you do MCA financing then your singular underwriting goal is CC swipes. #businessfuelJoel Jensen
@jdkartchner @RobertFSteele @Lendio In MCA / ACH type of lending, it usually depends on your revenue and your business type. #BusinessFuelRapidCapital Funding
Alternative lenders are leaving the shadows and becoming well respected options and brands. #businessloans #businessfuelJoel Jensen
Minimal paperwork, timing of funds, often no collateral, and short term payback periods. All benefits to the business owner. #BusinessFuelRapidCapital Funding
Alternative lenders are leaving the shadows and becoming well respected options and brands. #businessloans #businessfuelJoel Jensen

The CEO of Merchant Cash and Capital, Steve Sheinbaum Joined the Chat

Let me introduce Stephen Sheinbaum, CEO of Merchant Cash and Capital (@MCCFunding) #BusinessFuelLendio
Hello Lendio and thank you for having me on your Friday #TweetChat. Looking forward to answering your questions about funding! #BusinessFuelMerchantCashCapital

MCC’S ANSWERS BELOW

Who does MCC work with?
@RobertFSteele at MCC, we work with restaurants, retail and more. You can learn more here – bit.ly/11iRPBP. #BusinessFuelMerchantCashCapital
@Lendio no…we have funded almost every type of #SMB. #BusinessFuelMerchantCashCapital
What is the approval rate?
@RobertFSteele Average approval rate for acceptable business types is over 90% and approval occurs within 24 hours. #BusinessFuelMerchantCashCapital
Is there a minimum credit score?
@Beebscat we provide funding to business owners with sub 500 FICO all the way up to perfect 800 credit scores. #BusinessFuelMerchantCashCapital
What defines their cash advance program?
@financeguy74 Cash Advances are based on future sales and unsecure business loans are based on current sales. #BusinessFuelMerchantCashCapital
What documents are needed for a pre-approval?
@MikeAlder801 Typically 3 months of bank statements and 3 months of credit card statements if applicable for a #CashAdvance #BusinessFuelMerchantCashCapital
What other products does MCC offer?
@Lendio Merchant Cash Advances, Unsecure Business Loans and Equipment Financing. #BusinessFuelMerchantCashCapital
How long does it take to get funded?
@TheEditorsNotes #MerhantCashAdvances take an average of 3 business days and do not require collateral! #BusinessFuelMerchantCashCapital
@TheEditorsNotes great question! Traditional business loans from banks can take 1-6 months w/ collateral required. #BusinessFuelMerchantCashCapital
What is the biggest obstacle for a business to get approved?
@MikeAlder801 Biggest obstacle is that we require SBO to be in business for at least 6 months. The rest is smooth sailing. #BusinessFuelMerchantCashCapital
How do you know if you are getting the best deal?
@Kenny_Caldwell Great question. Watch out for brokers and middlemen so you are always paying the best available rates. #BusinessFuelMerchantCashCapital
@BeebsCat Best way to prepare – research the company through BBB, call them and check their Comp CC Score. Do your homework! #BusinessFuelMerchantCashCapital
Who would take a merchant cash advance?
@MikeAlder801 The business types are a wide variety. Any #SBO that needs a quick cash injection to help their business grow. #BusinessFuelMerchantCashCapital
Are there any underwriting red flags?
@RobertFSteele red flag would be an open bankruptcy. We have unique products that can help SBOs with a history of bad credit. #BusinessFuelMerchantCashCapital

Last modified: May 27, 2013
Sean Murray


Category: ACH Advances, business cash advance, Loans, merchant cash advance, merchant financing, merchant funding, merchant loans, MPR Authored

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