Alternative Business Financing

Paper Clips & Business Tips

2008-12-01T12:02:00.003-08:00

While kneeling down to pick up a paperclip off of the floor of my office, I was reminded of a book that I read about 3 years ago. (Unfortunately, the name of the book escapes me right now, but I will check my bookshelves at home so that I can properly credit the author.) At the time, my company was going through what I perceived and believed to have been a difficult time. Little did I know that we would all soon be facing possibly the most challenging economy in nearly all of our lifetimes.

I turned to the book for some direction and solace. And the primary theme of the piece was an emphasis on utilizing simple tools and making common sense decisions in order to succeed as a small business person. One chapter in particular resonated with me. Short and to the point, the chapter extolled the virtues of the business person who took the time to bend over, pick up the omnipresent paperclip on his or her floor, and reuse it. This was, of course, juxtaposed against one who might simply walk past the object or one who might pick it up only to discard it.

This was and remains less of a lesson in “going green” than in a simple truth: small business people must never become lazy when it comes to conserving. The simple act of reaching down and picking up a paperclip for its reuse at a later date is a powerful statement made by the business owner that there is just no room for waste. Acts like these can set the tone for entire corporate cultures.

While I believed this to have been true when I read it, it may never have been more relevant than it is today. Companies in general – and smaller businesses in particular – must use all means necessary to conserve capital. This is because the conservation of capital in a recessionary economy equals survival.

This philosophy, coupled with some of the solutions offered by Bay Harbor Capital, like merchant credit card cash advances, accounts receivable financing, and equipment leasing, will make the difference between those companies that are able to weather the storm of 2008 and thrive in 2009.

Who Qualifies for a Merchant Credit Card Cash Advance?

2008-12-01T12:02:00.001-08:00

Among the other important factors to be considered when applying for a merchant credit card cash advance, one must consider the average size of each of his or her company’s transactions. One might ask him or herself why this is of any importance at all to the funding source making the advance. The answer is actually a fairly commonsensical one.

To illustrate the significance of this data, let us use two examples, both of which are seeking a merchant credit card advance of $20,000.

THE LOCAL DINER

The first example shall be that of a local diner. Let us suppose that said restaurant averages $20,000 per month in credit card sales. We have all been to diners, so let us assume that the average cost of a meal paid for by credit card is $30.00. This means that in a given month, to maintain the level of $20,000 in sales, the diner would have to serve 667 meals at the average cost of $30.00. Achieving that amount of turnover and sales would seem to be quite a daunting task.

THE HIGH-END FURNITURE STORE

For the purposes of this discussion, let us say that the second business is a high-end furniture store. This store, which sells custom made pieces, averages $80,000 per month in credit card sales. The furniture is sold in sets, however, so the average cost per transaction is $8,000. As you can guess, this means that the store would have to make only 10 average sales to maintain its monthly average of $80,000 in credit card transaction.

WHO IS MORE LIKELY TO OBTAIN AN ADVANCE?

As we have discussed in previous posts, the advances are repaid to the funding source on a per-transaction basis. This means that the funding source will hold back a percentage of each transaction - anywhere from 8% to 25% - until the advance is repaid. Common sense would seem to dictate that it would be easier for the high-end furniture store to make 10 sales than it would be for the diner to make 667. Therefore, the furniture store is the apparently obvious answer.

But we must delve further to better understand who the more qualified candidate for a merchant credit card cash advance is.

While the diner has to do more volume, the relatively small size of the sales makes it impossible for any one, two, or even fifty to materially affect the restaurant’s income. This is not the case with the furniture store. A decrease by only 5 sales would cut the store’s income in half, affecting its ability to repay the advance. Now, while funding sources understand and account for the fact that some months are slower than others - resulting in less being repaid in those months - they like to hedge as much as possible.

Thus, in the end, the diner is the better candidate for a merchant credit card cash advance than the high end furniture store. This is not to say that the store would be summarily rejected for an advance, but it would certainly be more of a challenge to find a source. So if you are considering a merchant credit card cash advance, understand that smaller ticket items sold in greater volume are looked upon more favorably than higher ticket items sold as in lower volume.

Should you have any questions about merchant credit card cash advances or any other type of alternative business financing, please contact Bay Harbor Capital at 1-800-541-0919 or visit our Web site at http://www.bayharborcapitalcorp.com.

Business Uses for a Free Web Tool

2008-12-01T12:01:00.001-08:00

The tool is called Google Street Maps, and if you have not already taken a look at it, then you should. It has been around for nearly a year and has some mind-boggling capabilities. Incredibly, it provides 360-degree street level views of roads across the country. Google was able to achieve this by having people physically drive a car with a sophisticated camera attached to the roof up and down various streets. Not all roads have been mapped, but knowing Google, I am sure they will be.

I am certain that after viewing this tool, a variety of business people will come up with ways that I could not even imagine to utilize it for their company. For instance, a real estate agent might use it to revolutionize the manner in which homes are shown. Agents could have the ability to "drive" a prospective buyer through a neighborhood prior to showing her or him the house, should they desire. Or a paving company could use the tool to look at a homeowner’s driveway and provide an estimate without having to go to the home. A roofing or gutter contractor could similarly look at the home online and provide a rough estimate.

In the case of my company, Bay Harbor Capital, I can think of numerous applications that we can employ immediately. For instance, prior to funding a merchant credit card cash advance, a physical inspection is sometimes needed. For instance, we might utilize it to check on the location of a gas station or restaurant to estimate the traffic. We might also be able to use it for our medical working capital product. For this type of financing, we need to verify that the location of the practice is not home-based or mobile which, with Google Street Maps, can be accomplished without leaving the desk.

So if your business requires that you or your staff view streets or properties, this tool might be useful to you, too. Needless to say, it will never replace a physical appearance or inspection. It might, however, be a cost-effective and time-saving method to pre-screen business prospects. It also provides the added value of placing you company at the forefront of the use of technology. And it’s free.

If your business is in need of financing, particularly if you have been turned down by your bank, we ask that you contact us at 800-541-0919 or visit us on our Web site at http://www.bayharborcapitalcorp.com. Among the many financial solutions we offer to businesses are merchant credit card cash advances, medical working capital loans, equipment leasing, and accounts receivable financing / factoring.

Refuse to Participate in the Recession

2008-12-01T11:55:00.000-08:00

“We understand that there is recession. We are just refusing to participate – and so should you.”

The words “recession” and “bad economy” have become a warm blanket for too many small to mid-sized business owners. It is easier to comfortably remain beneath the covers of these words than it is to rise out of bed and face what has always been a cold, stark reality of business: it is extremely difficult.

We business owners have understandably been beaten into submission by the constant media barrage informing us that the economic sky is falling. As a result, too many of us are accepting slower sales, decreased volume, or lower incomes as inevitable consequences. But are these conditions truly unavoidable?

The economy of this great country is, as others have described it, much like a rubber band. It has been stretched too far – not unlike it has in the past. But what is the more likely scenario? Will the economy break in half, never to return to normalcy? Or will the natural and inherent tension that has kept it in check for the majority of this country’s history force it to snap back so that it resembles its former, more natural self?

Before you answer that question, consider the primary reason cited in the media for this bad economy. It is, by all accounts, a failure on the part of large banks with regards to overly aggressive lending practices on real estate mortgage loans, many of which have gone into default.

This is, unfortunately, a reality. While one might be able to argue why it happened, no one can argue that it has happened. Similarly, one cannot dispute the fact that real estate values have fallen precipitously and that there is a general lack of liquidity in that sector. It is no great revelation to state that the large lending institutions and those dependent upon their funds are in peril.

Let us consider also the fact that our country’s economy – and, to a degree, our country itself – has been founded upon an entrepreneurial spirit. The present day carriers of this torch are the small and mid-sized business owners out there. These are the brave souls with the guts to hang a shingle, take out a loan, and work for little or nothing at the start in pursuit of the most American of dreams.

These people and their businesses – not the housing market and not Wall Street – are the backbone of this country’s economy. It is the small and mid-sized business person who, in pursuit of his or her goals, spends the money – on wages, services, equipment and countless other items – that stimulates the economy. It is this same business owner who empowers others like employees and vendors to do the same. Resultantly, the company’s vendors – cleaning services or small IT firms, for example – are able to do the same thing with their employees and suppliers. This is the essence of trickle-down economics. This is what makes our economy go.

The problem for many of the owners described above is that we are now of the mind that there is no liquidity in the commercial or business finance sector. This, quite simply, is untrue. In fact, business owners have just as much access to funds as they have in the past. The only change is that this money will not be coming from their local depository institution. As such, we not only have it within our power to refuse to participate in the recession, but to pull the country out of it far more quickly than any politician or government agency.

To find out how and why, look for part two of this piece, and visit us at http://www.bayharborcapitalcorp.com for all of your business financing needs.

Church Equipment Financing

2008-12-01T11:52:00.000-08:00

Is Your Church in Need of Financing for Important Equipment?

If you are, then you undoubtedly know how difficult it can be for churches to obtain financing. But this is where we come in.

Bay Harbor Capital recognizes the shortage of funding for worthy churches and has a program specifically designed for your institution to purchase the equipment you need for your congregation now. This is truly one of the most unique products in commercial finance.

Through this special program, we can finance the following:

· Pews / Seating

· Air-Conditioning Systems

· Heating systems

· Organs

· Sound/Audio Equipment

· Video equipment

· Pianos

· Computers

· Or just about any type of equipment your church needs.

We offer low rates and up to 60 months to repay.

Our Church Equipment Finance Programs

We offer 3 specific programs so that every church nationwide can qualify to obtain financing for any equipment their growing church needs. Below is a list and a brief description of each program and what a church would need to qualify for that specific program.

1. Established Church Program

Church must be established for 7 years or more if the church is part of a major denomination. 15 years or more if the church is non-denominational.

Church must maintain a minimum average bank balance of $7,000 or more. Combined accounts will qualify, example: checking + savings.

Church must be listed with directory assistance.

2. Newer Church Program

Church must be established for 2-5 years or more.

Church must maintain a minimum average bank balance of $2,500 or more. Combined accounts will qualify, example: checking + savings.

Church must be listed with directory assistance.

3. Start-Up Church Program

Any church that has been established less than 2 years.
Church must maintain a minimum average bank balance of $2,500 or more. Combined accounts will qualify example: checking + savings.
Church must be listed with directory assistance.

If your church might benefit from our services, kindly contact us at 800-541-0919 or visit us online at http://www.bayharborcapitalcorp.com.

Equipment Leasing Programs

2008-12-01T11:51:00.000-08:00

Do You Need to Lease Equipment of Any Kind to Make Your Business Voyage Smoother or Lengthier?

Then you have come to the right place. Bay Harbor Capital offers a plethora of leasing programs to fit almost any piece of equipment, business need, or credit profile.

We are also proud to say that we carry our own line of inventory for trucking, construction equipment, heavy machinery, and more. You can view our entire line of inventory at Off Lease Specials or Trucks at Hand.

Here are the primary types of lease financing that we offer:

	Application-Only to $250,000. No financials needed.
	Middle market financing up to $500,000
	Large ticket over $500,000

Approvals for application-only product can be obtained in 24 hours. Middle market and large ticket approvals usually take 3-5 days. We are able to offer up to 84 months to repay these leases with some of the most competitive rates in the industry.

Sale & Lease Back
Many companies need working capital for expansion and do not want to use their bank lines for working capital. We have a program where we can use the equity in your existing equipment to give your company the working capital it needs. We buy your equipment and lease it back to you and when all the payments are made you own the equipment again.

Startup Program
Most financial institutions will not finance companies that are just going into business. If your company has just started in business, or is in business for a short time usually less than two years, we can help you grow by financing the equipment you need to be successful.

B, C and D Credits
In these tough economic times many businesses have suffered financially. Additionally, the owners of these companies have seriously damaged their personal credit. We have developed a â€œsecond chanceâ€ program to help these companies. We can structure your financial needs to help you rebuild your company.

Government and Municipal Leasing
We can provide lease financing to any government or municipal entity with guaranteed approval. The rate is determined by the rating of the municipality or government agency. A partial list of who we finance is listed below:

Federal Government Agencies
Armed Services
State Agencies
Public Schools
Police Departments
Fire Houses
Libraries

The above list is only an example of what we can finance. We can finance any state or federally controlled entity.

For more information, please contact us at 1-800-541-0919 or visit us on the web at www.bayharborcapitalcorp.com.

Merchant Credit Card Cash Advance Program

2008-12-01T11:49:00.000-08:00

Would Your Business Move Forward or Stay Afloat If You Could Receive an Advance on Future Credit Card Sales?

If the answer is "yes," then a Merchant Credit Card Cash Advance may be the solution you have been looking for. This is simply one of the most aggressive and easiest means for a company to obtain funds on the market today. With this groundbreaking program, poor credit, late payments, and bank turndowns simply are not an issue.

There are 3 Simple Steps to the process.

1. See If You Qualify

Determine how much your average monthly credit card sales are for the last four to six months. Then check the simple requirements below:

· Have you been in business for at least 6 months?.

· Have you done least $2,500 in average monthly credit card sales?

· Do you have accept Visa, MasterCard, and Amex.

2. Contact Us

Call us at 1-800-541-0919 or contact us online so that we can assist you in completing a simple, one page application. We will also need the last 4 months merchant account statements, your last month's business bank statement, and a copy of your driver's license. THAT'S IT!

3. Repay Based Upon Your Ability

This is the best part of the program. We are banking on the fact that you will continue to do business as you did before. So we fix your payment at 15 to 20 percent of your future credit card receipts until the loan is repaid. This includes principal and interest.

That means you are able to keep 80% to 85% of your monthly credit card sales. So, if you do very well, your cash advance gets paid back sooner. If, however, business is slow you pay back less and over a longer period of time. THIS MEANS NO MORE WORRIES!

Once you have repaid 50% of the advance you can make a simple phone call to re-borrow the paid amount. It's by far the quickest and easiest way to get cash short of going to your own ATM.

Use the funds for payroll, operating expenses, the purchase of inventory to take advantage of bulk-order discounts, for growth or expansion, to respond to seasonal demands and opportunities, or PERSONAL USE.

If this is something of interest to you or your company, kindly contact us at 1-800-541-0919 or visit us online at http://www.bayharborcapitalcorp.com/.

Who Is Bay Harbor Capital?

2008-11-10T09:35:00.000-08:00

Bay Harbor Capital (www.bayharborcapitalcorp.com) is a New York Corporation specializing in Alternative Business Financing, or loans that banks today cannot or will not make. Quite simply, we are able to provide funds to qualified businesses and professionals when no one else can.

The principal owners of Bay Harbor Capital have deep roots and decades of experience in the world of finance. By building one of the most successful residential mortgage loan brokerages in New York – which arranged in excess of half-a-billion dollars in residential loan transactions over the past 5 years – we became experts in lending products, their sources, and the financial industry as a whole.

About two years ago, despite the unfettered growth of our mortgage company, we began to see cracks in the foundation of the residential lending business model utilized by most of our partner lenders. We recognized that the primary flaw was not that funds were being lent to persons who were not entirely creditworthy; risk, quite simply, is an inherent part of the financing process. The real issue, instead, was that these funds were being lent at rates and terms that were not risk-based. The industry simply did not hedge against the inevitable fact that some are simply unable to repay debts.

Over time, our research indicated that this was not only occurring in the residential lending industry, but that it was also limiting the availability of funds in general from traditional lending sources. This gradual drying up of liquidity in the traditional lending markets compelled us to seek out new sources for funds.

We made the decision to enter a market that was unaffected by the problems facing the rest of the lending world. At that time, the owners of Bay Harbor Capital began to strategically shift their assets and time toward what they have come to call the Alternative Business Financing Market.

At this time, our company has access to approximately $320 million in funds to be used for the alternative financing of business, including those of people just like you. We presently operate in all 50 states.