All You Need to Know About Payment Processing

DIGITIZED PAYMENT ROUTE

Marketing is now more digitized as compared to the previous decades since most businesses are now adapting to efficient means of payment such as online to capture more sales. Online payment is not only effective when making transactions in purchases, but also when organizations are doing business that requires fast and proficient methods of monetary exchange. Incorporating streamlined online payment processing is among the key factors that promote success but also enhances customer experience. Transitioning to online means of conducting business requires you to focus on three main factors which include Players, payment, and pricing. Understanding how your money gets to you goes a long way in assessing and securing your income.

Money Transfer

1. Players

Online payment options require the processing of credit and debit card payment which occurs via online means and also face to face. This process takes place online by connecting you, the business owner, to the customer via technology. The three key components for an online payment process include;

  • The trader
    As a business owner, you need to partner with a merchant bank that accepts payment online on behalf of your organization. The purpose of the merchant bank is to deposit acquired income into the trader’s account provided.
  • The Customer
    For an effective transaction, a customer needs a credit or debit card that is issued by an issuing bank, which guarantees the credibility of the customer.
  • Digital Means
    Two main components are usually crucial when carrying out an online transaction. The first is software that connects your business shopping cart to the network which processes the transaction and payment processor, which works closely with the merchant bank which deals with sending the organization a billing statement which simplifies the entire process.When it comes to online payment, as a business owner it is important to have a clear understanding of how money moves from your customer to your business. This process involves two key processes; the authorization process and settlement.

2. Pricing

Pricing covers all those who take part in ensuring that the money gets to your business and require payment. These include the issuing bank, merchant bank, and payment processor. There are four key areas where payment is required such as;

  • Interchange fee, where the issuer gets paid for each transaction.
  • The credit card associations also require a cut from the transaction fee.
  • The merchant bank takes a percentage fee for every transaction.
  • A payment processor takes a cut of the funds by charging an authorization fee.

Online payment has helped in transacting without using liquid cash which aids in reducing the risk of transmitting  covid-19 and therefore saving and protecting the health of your business’s workforce and also your customers. Online payment is becoming more common across various service providers and not just because of health safety, but also because of the following reasons;

  • Companies that deal with payment processing relieve you of the burden of managing card detail which involves running it through an IMA.
  • It also saves you from setting up a secure payment system, which is not an easy task, with an increase in cyber insecurity.
  • Makes the processing of applications quicker as compared to IMA

At MobyCap, we offer multiple funding options such as SBA loans, merchant cash advances, business lines of credit, term loans, and invoice factoring. This allows the funding team to leverage the best parts of your clients’ businesses during the underwriting process. We also provide entities that are higher than any other company in the industry. We can efficiently process your request within several business days which will save time and improve customer experience. To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

Equipment Leasing: A Simple Guide for Business Owners

Leasing is a convenient, affordable way to help businesses of all sizes acquire high-quality equipment they might not be able to purchase outright. But if you’ve never leased equipment, it’s natural to wonder how the process works and what specific benefits leasing can deliver to your business. Below is a look at the top benefits of equipment leasing and the key to a successful equipment leasing experience.

How does the equipment leasing process work?

The path to a smooth equipment lease begins with a clear understanding of how the process works. The process typically begins when a person or business (ultimately the lessee) needs one or more pieces of equipment. In many cases, the equipment needed is costly – sometimes carrying a value of $1 million or more. In a nutshell, there are three primary reasons why a lessee may decide to lease equipment:

  • Scenario 1: The lessee needs the equipment indefinitely but is not able to afford to pay cash in advance
  • Scenario 2: The lessee needs the equipment for a specific period of time and is not interested in long-term use
  • Scenario 3: The lessee is interested in acquiring the equipment with the option of purchasing it at the end of the lease

The leasing company typically pays the equipment provider in advance and the equipment is delivered to the lessee according to negotiated terms. The lessee then makes affordable monthly payments to the leasing company throughout the course of the lease. At the end of the equipment lease, the equipment is either returned to the supplier or purchased at a negotiated rate.

What are the steps involved with a typical equipment lease?

No two equipment leases are exactly alike. However, there are some basic steps that are followed in virtually every equipment lease. Depending on your financial health and the leasing company you select, your application could be approved and your equipment delivery confirmed within just a couple of days. Here are the key steps involved in a typical equipment lease.

Step One: Make a list of the equipment you need

If you are considering an equipment lease, you likely have an idea of the equipment you need and the approximate cost. But it’s best to be as specific as possible with equipment suppliers to avoid confusion. As you prepare your list, be sure to include the following:

  • The equipment or machinery you need
  • Your preferred manufacturer and model
  • The quantity of each item you need

Step Two: Request a quotation from a reputable equipment provider

Depending on your industry and the equipment on your wish list, you could be looking at a multi-million dollar transaction if you were to purchase the equipment outright. Most equipment leasing companies will want to review your estimate, so make sure you request a formal quote that includes the following:

  • The delivery address of your facility
  • A signature of the company representative
  • An expiration date
  • Any additional fees

Step Three: Select a trusted equipment leasing company

Not all equipment leasing companies are created equal. As in the case of equipment providers, leasing companies vary greatly in terms of their service, funding abilities, and reputation. As you evaluate leasing companies, look for a company that offers the following:

Step Four: Complete an application

Today’s equipment leasing companies make the application process fast, straightforward, and convenient for prospective clients. It is not uncommon for leading companies to have a short one-page equipment lease application that can be completed online in a matter of minutes. You might be asked to provide some basic documentation along with your application. The documentation requested will depend on the type of business you own and the value of the equipment.

Step Five: Receive approval

If you are working with an efficient leasing company, you can expect to receive approval or feedback on your application within 24 hours. And if you’ve selected a top-tier company to handle your lease, your first lease payment could be remitted the same day you are approved. This means you could have the equipment you need in hand faster than you ever imagined.

What are the top benefits of equipment leasing?

Many people are surprised by how straightforward and easy it is to lease machinery or equipment. In fact, the simplicity of the leasing process is a major reason why many business owners and operators decide to lease again in the future. Here are some other benefits of equipment leasing:

1) Flexible terms and equipment options

Flexibility is one of the many advantages of an equipment lease. You can negotiate the length of your lease to suit your needs and work with your leasing company to arrive at monthly payments you can afford. Additionally, you have a lot of latitudes to choose your favorite equipment brands and models.

2) You may opt to purchase the equipment at the end of your lease

Some lessees find that they don’t want to part with equipment as the end of a lease term approaches. In some cases, employees grow comfortable using leased machines, and some business owners find that their productivity skyrockets after new equipment is introduced. So whether you wish to avoid disruptions to your operations or simply wish to keep the equipment you have grown accustomed to using, you can often negotiate a purchase at the end of your lease.

3) Your maintain a healthy cash flow

Healthy cash flow is the cornerstone of growth for many companies. Leasing a device for a few thousand dollars instead of forking over $100,000 to purchase it outright can help you keep plenty of cash on hand. This cash can be used to fund special projects, expand your product line, or hire new employees.

4) You don’t have to stress about service

Service woes and equipment breakdowns are two of the woes of owning equipment outright. Grappling with equipment repairs can be costly, and equipment problems may even halt your productivity. But with most equipment lease agreements, you aren’t responsible for equipment servicing. So, if a machine you are leasing breaks down or requires maintenance, the equipment provider must repair or replace the item quickly and at no cost as your lease agreement specifies.

What are some common examples of situations that call for equipment leasing?

With leasing offers so many enticing benefits, you may wonder whether it is the best option for your business. As you compare leasing with other financing options, it’s helpful to consider some of the unique ways leasing can help you meet your revenue goals. Here are some examples of situations when equipment leasing makes sense:

1) Your business is a startup or in the early phases of growth

Startups and new businesses rarely have much excess cash on hand. However, many begin generating substantial revenue after being open just a few months. By offering manageable monthly payments, leasing is a good choice for growing businesses.

2) You would like to offer special medical services

Equipment leasing is quite common in the healthcare industry. Capital medical equipment can cost hundreds of thousands of dollars, making procurement a challenge for budget-conscious facilities and doctors starting their own practices. Here are some ways leasing can help healthcare providers:

  • Equip temporary pop-up or mobile clinics: Leasing is a great option for healthcare practitioners seeking to open
  • Procure high-ticket equipment: Obtaining a costly MRI machine, CT scanner, or mobile x-ray unit becomes more affordable with leasing.
  • Ease startup costs: Leasing can help newly licensed doctors and dentists equip their practices without breaking the bank.

3) You need to prepare for peak season

Many businesses depend on revenue from their peak seasons to carry them through the remainder of the fiscal year. And there are few things more frustrating than being unable to deliver service or products when you have the staff but lack the machinery necessary to meet increased production demands. Leasing provides you with access to the equipment you need without destroying your budget.

What is the key to your satisfaction with equipment leasing?

Clearly, equipment leasing offers a host of benefits to businesses in many industries. But why are some leasing experiences picture-perfect while others leave something to be desired? The answer often lies in the leasing company you work with.

The key to your satisfaction is to select a five-star equipment leasing company that is professional, efficient and focused on helping you secure the equipment you need as quickly as possible. As a leader in the equipment leasing industry, Moby Capital is here to guide you through the equipment leasing process. We offer a level of responsiveness that is second to none and have a proven track record of success working with capital equipment suppliers across a variety of industries.

To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization!

Why Your Business Needs a Merchant Cash Advance

Popularly known as MCA, the merchant cash advance offers a quick loan to businesses. Think of it as a paycheck advance that goes to businesses rather than individuals. Although, it is increasingly becoming popular among establishments with a steady volume of sales. Most business owners aren’t entirely sure of whether or not to get a merchant cash advance. Well, below is every reason why your business needs this type of loan.

1. Quick and Easy Application

With this type of funding, an establishment can get the money they need within a couple of days. Understand that your sales history is the most important consideration, both short-term and long-term. Some lending companies will have the funds ready within the day of application, thus increasing convenience and reliability.

Demonstrating that you have a viable business is all you need to qualify. Ensure you have all the documents that can prove a high volume of sales within the year. Getting your MCA will, therefore, be quick and easy.

2. Flexibility

With MCAs, you get to experience all the advantages of flexibility. Understand that you get to choose how to use the funds, which is a huge bonus. Other types of funding will usually need a detailed plan on how you will be spending the money. However, MCAs let you have full control over the funds and your business. 

You also get lots of options when it comes to payment plans. For instance, your repayment plan can be linked to the percentage of daily sales. What this means is that you won’t need to pay a lot of money when the sales are low. Understand that businesses with flatulating sales can significantly benefit from the flexibility of MCAs.

3. No Collateral

MCAs are unsecured loans, which means that they don’t tie up any business assets as collateral. If you are a business with limited assets, a merchant cash advance is an excellent choice. All of your existing assets remain operational and functional.

Understand that MCAs will also not affect your credit ratings, unlike commercial loans. Because your MCA depends on the future sales of your establishment, they are never present on your credit report. You can, therefore, maintain your credit rating and apply for any other loans.

4. Fast Cash Access

Commercial loans take a lot of time to process once approved, sometimes up to a few months. MCA funding, however, is usually available within a few days after approval. You do not need to file a lot of paperwork during the application, making the process fast and easy.

Fast cash access is an important consideration, especially when your business needs immediate funding. Understand that getting quick access to cash might be the difference between keeping your business afloat or shutting down.

5. High Approval Rate

Compared to other sources of business funding, MCAs have a much higher approval rate. The advances are hardly denied because there is always room for negotiation. You can always recalculate the interests or change your payment plan should you run into a problem.

Struggling businesses usually find it challenging to get a regular commercial bank loan. If you find yourself in such a situation, MCAs are your best bet for getting your business back on its feet. You also get to negotiate the payment plans and duration of the loan to suit your needs.

Conclusion

Are you looking for fast and easy business funding to help you meet your goals? MobyCap includes a team of dedicated professionals that will help you attain funds in as little as one day. To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

Term Loan: What is it and How You Can Use it to Grow your Business

A term loan is a type of loan acquired from a bank for a specific amount. These loans also have a specified repayment schedule with either a fixed or floating interest rate. A fixed interest rate is a loan where the interest rate does not fluctuate during the fixed-rate period of the loan. A floating interest rate is an interest rate that moves up and down with the market or index.

A term loan is ideal for businesses that are established with solid financial statements to show the lender. Keep in mind, a term loan may require a considerable down payment to reduce the payment amount and total cost of the loan.

Types of Term Loans

  • Short-term loan: This type of loan is generally offered to businesses that don’t qualify for a line of credit. These loans often run for up to a year but some loans can run up to 18 months or so.
  • Intermediate-term loan: This type of loan runs for more than one year but less than 3 years. It is paid in monthly installments to aid businesses with cash flow. For businesses that acquire an intermediate loan, it is possible to have a balloon payment for the final installment.
  • Long-term loan: This type of loan runs from 3 to 10 years but some can last as long as 30 years. With a long-term loan, the business assets will be used as collateral and will require monthly or quarterly payments from profits or cash flow. Similar to an intermediate-term loan, a shorter long-term loan may have a balloon payment for the final installment.

Advantages of Term Loans

A term loan is one of the most common forms of business financing. Term loans provide businesses with working capital that enables them to operate their business efficiently and helps ensure the business can continue to sustain. With that said, term loans are a great option for businesses who quickly need funds for their operation. Here are 5 advantages of term loans.

Low-Interest Rates

One of the more favorable aspects of a term loan is that businesses can expect to snag a relatively lower interest rate. This is because term loans have longer durations that allow for these lower rates.

It’s important to note that your interest rate will depend on the following factors:

  • The current index rate
  • Perceived credit risk represented by your loan
  • The length of the loan term

Flexible Use of Cash Flow

Another benefit of term loans is the ability to use cash flow in multiple areas of your business. For instance, businesses can use the money to make large investments such as for equipment. At the same time, the money can be used to hire and train new employees. Essentially, the flexibility of these loans makes it easier for businesses to meet the various needs of the business.

Flexible Loan Duration and Payments

A term loan is also favorable when it comes to the flexibility of the loan duration, payments, and interest rate. Businesses have the opportunity to negotiate before the loan is granted, allowing them to acquire a loan that they can afford all while helping their business.

Keep in mind, the flexibility of the terms will depend on the credit score of the business and business owner.

Quicker Approval Times

Often times, businesses get in a bind and need cash quickly. This means that waiting for a loan approval might not be much of an option. A term loan can be a great solution to this problem as businesses can get their funds anywhere from 2 days to 2 weeks, depending on the lender.

Preserves Shareholder Equity

One concern that many businesses have when it comes to business funding is shareholder equity. Businesses often need funding but don’t want it at the expense of losing ownership percentage. Since term loans are debt financing, it does not affect the company’s interest in the equity shareholders. In addition, it keeps the company’s equity intact.

Using a Term Loan to Grow Your Business

Term loans certainly have great benefits that make them worthwhile. For owners that are considering getting a term loan for their business, it’s important to consider all the ways you can use the term loan to enable growth.

Refinancing Business Debt

One way that businesses can utilize their term loan is by refinancing business debt. This is a great option for businesses that already have multiple loans at varying interest rates. You can consolidate this debt with the help of your term loan to create a single term loan.

This not only helps businesses manage cash flow better but businesses can streamline monthly payments. In addition, streamlining debt can help businesses save money because it essentially allows them to cut their monthly payments, which improves cash flow.

Purchasing Inventory and Equipment

For a lot of businesses, having inventory and equipment is essential for business growth and sustainability. However, stocking up on inventory and replacing or updating equipment can be costly.

In this case, an intermediate or long term loan can be a viable solution. Businesses can get the inventory and equipment they need while having enough time to pay it back. What’s even better is that businesses can often pay it back in a timely manner through continued business operations.

Hiring and Training New Employees

Your team is a crucial part of meeting customer demands and ultimately providing the best customer experience. For this reason, businesses must focus on hiring quality talent and providing ongoing training to continue to meet the rising demands of the business. This is especially important for businesses that are in a growth period.

For instance, a business might need to hire new employees if the business is growing in order to not lag behind. At the same time, it might be necessary to train your employees on how to use new equipment you’ve just purchased.

Being able to hire new employees and provide training ensures that the business is always prepared to handle operational demands. Along with this, businesses can ensure they are backed by a quality team that represents the business.

Developing New Products

It’s not uncommon for businesses to develop new products as a way to expand their market. In some instances, developing a new product is necessary to keep the business afloat. But, businesses don’t always have the capital to allocate to product development.

With a term loan, business owners can use the funds to cover the initial costs of production or market research. This is a great option for businesses that are already making their dollar stretch as the initial cost of developing a new product isn’t necessarily cheap. At the same time, using a portion of your term loan to fund this new idea ensures that you can properly invest in your idea, improving the likelihood of product success.

4 Tips to Help You Secure a Term Loan for your Business

Have an Idea of the Type of Loan You’d like to Obtain

If you’re interested in a term loan, it’s important to know the type of loan you’d like to obtain. Each loan will have its own guidelines and restrictions that can either increase or decrease the likelihood of your business obtaining the loan. For instance, businesses that are interested in a long-term loan will need business assets to be used as collateral.

Gather Your Documents

Proper documentation is essential, especially when it comes to securing a loan for your business. Gathering all required documents ahead of time is a great way to stay organized and increase the chance of obtaining a loan.

Many lenders will have stringent requirements to help minimize their risk. With that said, get prepared to gather things like your income statements, balance sheets, financial projections, and bank statements.

Assess Your Collateral 

Having collateral is key to obtaining a term loan with favorable terms. Start by making a list of everything that can be used as collateral in your business. If you don’t have any business collateral, consider using personal assets. A lender may consider this when determining your loan eligibility.

Stay on Top of Your Credit Score

Your credit score is a key player when it comes to securing a loan. After all, your credit health gives insight into your financial health and financial behavior.

For businesses, it’s important to pay attention to your business and personal credit score. If your business is just starting, you won’t have much credit history. But if your company is registered as a sole proprietorship, lenders might look at your personal credit score.

However, lenders will focus more on your business credit score when you’ve run your business for a while. In either case, it’s always a good idea to know where your credit stands before applying for a loan. This way, you can take any necessary steps to improve your scores and receive the best chance of obtaining a loan.

Term loans are a popular option for business owners who want to grow their companies. These loans have great advantages such as quick approval times, flexible use of cash flow, and flexible loan terms and payment. With that said, there are some disadvantages that businesses should consider such as personal guarantees, loan fees, and credit score qualifications.

If you’re interested in a term loan, be sure to have a solid understanding of your business goals, how much loan you can afford, and the financial obligations of acquiring the loan.

To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

How to Choose the Suitable Business Line of Credit

After the end of the year 2020, we can safely say that it was not that easy for many businesses—especially when most governments globally instilled strict prevention measures against the pandemic, covid-19. Businesses experienced losses due to closure and fewer transactions, which resulted to the decline in business activities. At Moby Capital, we decided to come to businesses’ aid, helping them get back on their feet.

One of the funding options we offer our customers is a business line of credit, which is access to a fixed amount of funds for withdrawal when short-term needs arise. The credit lines we offer help businesses in tough times, such as these by offering them a substantial limit that they can access. A credit line is important because it helps you work within a specified budget, especially when one is not sure about the amount to borrow.

Considerations When Choosing a Line of Credit

  • Secured or Unsecured Credit Lines: Secured credit lines are stricter and secure when it comes to the acquisition of a credit. This is because they require collateral, which acts as a cushion for the lending company if payment is not met. Collateral could be a range of things such as; real estate, inventory, and equipment. If your organization is starting, this is not the best option for you. However, this type of credit is simpler to qualify for, especially with a low credit score.On the other hand, an unsecured credit line is less rigid in the acquisition process as it does not require collateral. It is, therefore, more difficult to qualify for an unsecured credit line.
  • Interest Rate: Cost is one of the most important things to look into when deciding on the best loan offers. Once you borrow against the credit line limit, interest starts to accumulate. Different lending organizations have different rates. It is crucial to assess various interest rates before choosing the best lending organization that fits your needs.
  • Amount: Depending on the limit you are being offered greatly affects your decision to jump on board or decline the offer. This is because the amount you need could be affected by the credit line limit offered. A higher credit line that surpasses your amount is enticing and risky to your business because of unwanted expenditure.
  • Terms and Condition: Before finalizing on accepting an offer, always go through the lender’s terms and conditions to meet when making payments. The pay-down provision dictates your form of payment and the duration you should take before each payment. It is either a monthly scheduled payment or an annual.
  • Fees: Most lending institutions usually charge an annual fee that keeps your account open. Extra charges may include transaction fees, which can be repayment and borrowing charges. Being aware of all extra charges helps you plan better on how to use the credit line offered effectively.
    Business lines of credit are more suitable than business credit cards because they are less expensive and have flexible repayment terms. If there is an emergency that requires instant cash, business lines of credit allow easy and fast access to your money. This means that you can continue accessing the money you need as long as you do not exceed the maximum limit.

Conclusion

At Moby Cap, we can examine our clients’ credit worth to determine the best option for you and your business. If your business has a good credit score, we lower the rate and increase your limit. Our company offers SBA loans, merchant cash advances, business lines of credit, term loans, and invoice factoring. All these help us develop the most appropriate financial plan that is guaranteed to help your business get back on its feet. For more information and useful insights, visit our official website at Moby Cap.

To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

How Merchant Cash Advances Work

A merchant cash advance or MCA refers to money that you borrow where you can repay it from credit card sales daily. It’s a unique way to try to get the money that you need. Here’s some information about how merchant cash advances work and what that means for your business as well as other options you might have.

Merchant Cash Advances Overview

It’s difficult out there for many businesses these days and as a result, many are attempting to do anything they can to survive. Some have looked to an MCA to keep the doors from shutting. An MCA is generally aimed at businesses that make their revenue largely from sales from debit cards or credit cards.

You can still try an MCA if you want to anyway, even if you don’t primarily do sales through debit or credit, but it’s often a bit rarer to do it that way. Technically speaking, institutions that provide MCAs say that their advance isn’t a loan. Instead, it’s more of an exchange. You get cash right away in exchange for giving away a percentage of what you make in the future.

Types of MCAs

  • Cash for a Piece of Your Sales-The traditional approach to an MCA is to give a percentage of your future sales to the institution that provides you with the cash.
  • Cash for Weekly Payments-On the other hand, it’s also possible to make it so that you repay the cash by sending a certain amount of money every day or every week right from your bank with Automated Clearing House withdrawals, or ACH, for short. The ACH approach to receiving an advance is now the most common type. ACH merchant cash advances are popular because it allows more types of businesses to receive advances without necessarily getting sales through credit or debit cards as much.

It’s worth noting that there are often fees associated with the weekly payments. They will continue automatically from your bank account until you have fully paid off the advance and any fees that make it worth the institution’s time. A factoring rate of 1.5 or under is common. This would make an advance of $50,000 contain fees of well over twenty thousand dollars.

Paying Off MCA’s

In order to pay off the advance, it often takes as long as an entire year or as short as a few months. If you are paying off an MCA that takes from your sales, then you have a certain amount of time to do that. The institution will take some percentage, maybe 10 percent, of all of your sales from that period, and keep going until you’ve paid everything off, including the fee.

In this situation, you’d pay $10,000 over the course of a month, paying hundreds of dollars a day off the top from all of your sales. This would change if your revenue went down since it’s a percentage. Especially in the time of a worldwide pandemic, your sales can fluctuate rapidly.

In the event that you had a fixed daily plan, it will all be written down. In general, the daily payments will be based on an estimate of how much revenue you’ll make in the current month, and withdraw daily based on that. The payment is always based on revenue, and the payments don’t tend to fluctuate based on what your current sales are.

Main Advantages of MCA’s

There are some definite advantages to how MCA’s work. Here are a few examples-

  • Fast Capital-One major advantage of MCA’s is that you can get capital quickly. This could be critically important in the case where your business will likely be on the verge of going under immediately if you don’t receive a lump sum of money right away.  This is particularly important during the days of COVID. Money later is often not going to help at all when you have bills that are coming in right now due to the pandemic and the depressive effect it may be having on your business.
  • Payment Amount NotSet-Since an MCA isn’t a loan, there are no fixed monthly payments. You won’t necessarily have a set schedule. Instead, you simply pay it back according to how much you make. This means you have less of a chance of falling behind and then needing to worry about where the money is going to come from to repay the money as a result. In an MCA, you will repay the money according to how much you make, on your own schedule instead of on the schedule of creditors. This flexibility should make it much easier to get to where you want your business to be.
  • No Credit Checks-Many MCA’s don’t affect your credit at all. The reason for this is that an MCA is not technically alone, it is actually something else altogether.  You are selling future sales for capital now instead. This means that you won’t have to worry about separate payments since it’ll be coming out of what you make.
  • Credit Score Allowances-Some companies that offer this option will also make it so that you don’t have to worry as much about your credit score in general. Many businesses hit by COVID may have a lower credit score right now, after all, which means that that score may not really reflect the actual viability of that business under normal conditions. This doesn’t mean it doesn’t matter at all, but it does mean that you might not need a credit score that is exceptional in order to get the MCA that you need.
  • Eliminate Some Stress-Many businesses these days are in highly stressful situations due to what’s happening. The important thing is to survive the immediate problem. A merchant cash advance can keep the wolves from the door and keep those doors open. Doing so means that you can then relax a bit. You won’t have this huge problem sitting over your head anymore. It’s well established that people who experience less stress receive all sorts of health benefits for it, whereas letting stress spiral out of control can make it much more difficult to run your business.
  • Simple Application-Many options for receiving money can be complicated and take a long time to come to fruition. In contrast, applying for an MCA is a relatively simple affair. You can usually fill out the process online in just a few minutes, and most companies will be able to respond to you quickly as well.
  • Freedom with How to Use the Money- Some loans require you to use the money that you gain in a specific way. However, with MCA’s you have the freedom to use the advance in any way that you see fit, giving you full freedom to get your business back on track in any way that you deem necessary.

Getting Started

The risks of relying on the government are numerous. Most recently, a “payment protection plan” extension for small businesses looked like it would pass, but then it ran into trouble with the president threatening to veto it. Regardless of what happens in the short term, it’s a fact that relying on any other kind of relief that’s not a solid loan comes with serious downsides.

You either aren’t going to know when the relief is coming, or how consistent it will be, such as with government options, or you have to worry about long term credit problems with other possibilities

In the end, the best possible option is almost always to get a loan from a company that you can trust.

Getting the Help You Need Now with Moby

One option for getting the money you need quickly is to work with MobyCap. They offer loans, MCA’s, and other options. There are several advantages to using MobyCap to get the infusion of capital you need to save and revitalize your business. These include the following-

  • Funds in One Day-Instead of waiting around for everything to clear, you could receive your funds from the loan as quickly as possible. After all, if you need the funds now to keep your business afloat, having it approved shortly after you need it won’t be much of a comfort.
  • Advisors-Instead of making your way through a confusing contract on your own, you will have the ability to consult with an expert to make sure that the loan you apply for is exactly the kind that you want.
  • Protections- MobyCap is considered a loan, so you will have the traditional protections from the federal government to make sure that everything is fair.

For more information about receiving the funds you need to help your business survive in this time of chaos, please make sure that you don’t hesitate to go ahead and contact us today. The sooner you contact us, the sooner we can help you find the funds that you require with reasonable rates and stability instead of unprotected percentages of triple digits.

A MobyCap loan could be the solution you’ve been looking for the whole time.

To move forward today, contact us by email at info@mobycap.com. As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

Importance of Getting Pre-approved BEFORE You Need Capital

Most business owners would agree that they would prefer to borrow as little money as possible. But enticing expansion opportunities and unplanned emergencies are often unpredictable. So whether you need money to grow your business or to help weather a storm, it’s comforting to know that you’re eligible for the funding you may need. More importantly, it’s reassuring to know that you can receive money as quickly as possible.

What are the benefits of seeking pre-approval before you need capital?

Before diving into the pre-approval process, it’s helpful to know some of the many benefits of getting pre-approved early. In addition to being able to move faster once you need capital, you can proceed with greater confidence when a great business opportunity strikes. Here are the top benefits of seeking pre-approval before you need capital:

1) Be ready to capitalize on a life-changing opportunity

Imagine owning a medical equipment company and landing a coveted government contract for 500 ventilators during COVID. Now imagine you have to turn down the opportunity because you have no idea if you’ll be approved for the capital you’ll need to manufacture the equipment. Knowing that you’re pre-approved will give you the confidence to sign the contract and boost your revenue by $10,000,000.

2) Know how much you can afford to spend

A key advantage of being pre-approved is knowing how much money you can afford to spend. Whether you plan to use the funding to expand your offices overseas or to invest in new facilities, you will be able to set your budgetary parameters more easily. Without pre-approval, you are left to speculate about whether you are eligible for a loan and to guess how much funding you might be approved to receive.

3) Gain a better grasp on your finances

Going through the pre-approval process forces you to be prepared and take stock of your finances. This process can prove to be eye-opening and educational for some business owners who rely upon a CFO or controller to keep track of their receivables and assets. For instance, you may discover that your profit margin year to date is a lot thinner than you thought. Or you may find that your credit score is lower than you thought.

4) Discover opportunities for improvement

Not everyone who seeks pre-approval will receive good news. If you aren’t pre-approved, you can identify the weak areas on your application and start addressing them right away. Common deficiencies that can harm your chances of being approved include incomplete documentation, weak cash flow, and lack of collateral. You can also take steps to boost a low credit score to increase the likelihood you will be approved for funding.

5) You can enjoy peace of mind

The psychological benefits of having the pre-approval process under your belt cannot be overstated. You can rest easier at night knowing you can secure the capital you need to overcome an emergency or take steps to expand your business. And should a life-changing opportunity present itself to your business, you can focus entirely on your action plan as opposed to worrying about gathering documentation required for funding approval.

What are some common reasons why people fail to seek pre-approval?

  • “We’re too busy to worry about pre-approval right now…”
  • “Our business is doing fine right now…”
  • “I don’t think we would be approved for funding right now…”
  • “The pre-approval process takes too long…”
  • “We already have some cash reserves set aside.”

The benefits of being pre-approved before you need capital are too compelling for savvy business owners to ignore. However, pre-approval is simply not a priority for many business owners. And some business owners have never even thought about applying for funding at all. There are many excuses behind this tendency but the majority of people who fail to seek pre-approval fall into one of three groups.

The first group simply doesn’t think about pre-approval because business is plugging along without trouble. The second group worries that they would be rejected for funding, so don’t even try. And the third group avoids the process because they think it would be a time-consuming hassle. Regardless of the reasoning behind the lack of initiative, it’s never pleasant to look back on a missed opportunity with regret that you did not take a simple step sooner.

What are the steps to being pre-approved?

Getting pre-approved for funding is an easier process than you may think. Today’s applications are often surprisingly short, with many applications for reputable funding agencies being only a page long. In most cases, there are three simple steps to getting pre-approved:

  • Step One: Complete an application. Many of today’s top funding agencies offer a simple one-page application you can complete online.
  • Step Two: Provide documentation. The type of documentation requested will depend on your business type and amount of funding needed.
  • Step Three: Select your funding type. Your lender can review the various types of funding for which you are eligible.

Once you are pre-approved, you can take comfort knowing that you could receive funding in as little as 24 hours. And with the variety of different funding types available, you can choose the option that is the best fit for your business. Here are a few types of funding solutions for which you may receive pre-approval:

  • Business line of credit: This option is a popular choice among project-driven businesses or those with pronounced peak seasons.
  • SBA loan: This loan type typically offers longer terms and attractive interest rates. Most or all of the principal is guaranteed by the SBA.
  • Merchant cash advance: This solution allows businesses to repay their debt by having a portion of their future sales sent to the lender.
  • Equipment leasing: This option is a popular choice for medical practices that can’t afford to pay $1 million for an MRI machine.
  • Invoice factoring: This type of funding enables business owners to receive capital based on their outstanding accounts receivable.

If you aren’t familiar with some of these alternative funding types, then it’s a good idea to carve out some time to speak with an experienced lending professional about the pros and cons of each. And because your business might be pre-approved for all the funding types listed above, it’s important to carefully compare how each type could impact your business.

What is the key to a smooth pre-approval process?

Securing pre-approval can be a difference maker to a business owner. But it’s critical to realize that not all lending organizations are created equal. The key to a smooth pre-approval process is to select a trusted, experienced lender who will guide you through the requirements. Ideally, the lender you choose will possess the following:

  • A skilled team of lending professionals with decades of combined experience
  • The ability to loan up to $5 million to approved clients
  • A variety of flexible funding options, such as term loans, business lines of credit, and SBA loans
  • An impressive collection of positive reviews from business owners
  • Funding options for businesses in a variety of industries
  • A personalized approach to their client relationships
  • A positive standing with the Better Business Bureau (BBB)

Choosing a funding organization with these attributes will help put your business on the path to financial success moving forward. And in many cases, you may find that you continue to work with the organization long after your debt is repaid.

What can you do today to get started?

Now that you’ve decided to prepare your business for future opportunities, the next step is to get the process started. As one of the most trusted names in the lending industry, Moby Capital is here to help you make this process smooth and easy. In fact, you need nothing more than a computer or mobile device to complete your initial application. Here is what you can expect when you choose MobyCap as your trusted lending expert:

  • A variety of lending solutions: We never use a cookie cutter approach at MobyCap. We offer all the funding types described above.
  • Sound relationships and education: We will take the time to review all funding options with you to make sure you choose the best one.
  • Detailed quotes: We will provide a written quote that carefully outlines key details, such as interest rates, terms, and fees.
  • Unparalleled responsiveness: We know that every minute counts in the business world. We can help you secure pre-approval quickly.
  • Business funding up to $5 million: We are proud to offer funding thresholds that are among the highest in the industry.
  • A focus on the future: When you work with MobyCap, you can depend on us to help you with your funding needs for years to come.

To move forward today, please contact us by phone at (512) 237-7786 or by email at info@mobycap.com As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization. Depending on your funding needs, you could have the capital you need within 24 hours. We look forward to serving as your trusted resource for all of your funding needs!

Why You Should Consider Alternate Funding Instead of Waiting for a Stimulus Package

The U.S. Government is in serious gridlock right now over another stimulus check to individuals and businesses. It’s anyone’s guess how long it’s going to take before something happens to change that and make it so that more funds become available. Fortunately, there is an alternate solution if your a business that needs funding now to stay alive and thrive.

The Problem with Waiting for the Government

While the government has launched numerous programs this year to help provide funding for struggling businesses such as EIDL and others, it often took a significant amount of time for them to pass these programs since the two different parties in the U.S. are in constant conflict and just about everything one tries to do is opposed by the other.

Given what happened in the recent election as well as in other elections, there is every reason to believe that this state of affairs is likely to continue into the foreseeable future.

Relief Promises

It’s been months since the last stimulus, and a new one was proposed all the way back in the summer. There have been multiple such bills, including the HEROES act. Nothing has happened since then at all. Instead, the two sides have done nothing but bicker over the exact details of stimulus proposals.

So, if you hear anyone promising that a bill to help out your business is just around the corner, you should regard this proposal with a hefty amount of skepticism given the situation. The most recent proposed bill was a fraction of the amount of the main bill this year.

There is a likelihood that relief will come at some point. Various government officials have promised it in the new year, and with some changes on the way in terms of the government, there’s reason to believe it may actually happen after next January.

This leaves the problem of what to do in the meantime.

Holding Out

There’s no doubt that COVID has had a massive effect on the economy. In some cases, it has completely obviated entire business models. Some businesses are only able to operate at half or less capacity during the restrictions imposed by governments due to COVID. Other businesses have actually just hibernated until the world changes back to a state similar to the way it was before.

All of this still requires businesses to generate enough income to keep their doors open, however, both figuratively and literally. Businesses still have costs, and they still have to pay rent for their locations. They still have to pay their employees something to retain them and to avoid having to start all over again.

Many businesses were relying on the government stimulus funds to keep themselves from closing their doors forever. Those are running out now, however.

Waiting for the government for the funding you need to try out a new business strategy that specifically caters to the COVID condition, or that simply helps your business survive for long enough for COVID to end or at least get better is a poor idea, however.

You may be waiting for much longer than you think, and help may come too late.

An Alternate Solution: MobyCap

Instead, it makes sense to use a company like MobyCap for a loan. You could end up with approval in a surprisingly short amount of time. Plus, you can always use any funds that come later to help pay off the loan.

Here are some advantages to using MobyCap-

  • Use Government Funding Later for a Loan Now-If you receive a loan through MobyCap, you can use any funds that you get from the government to pay off the loan later on, whenever that funding arrives. This means that getting a loan now makes it as if you did get the government funding now. This way, you can receive the money you need now, when you need it, instead of later when it may be far too late. Many experts agree that some kind of stimulus for businesses is going to come at some point. However, if that point comes too late for your business, then it doesn’t help you at all. MobyCap can help you remedy this situation.
  • Rely on MobyCap’s Vast Experience- MobyCap has secured approximately $1 billion in funding for clients over the last ten years. This means that they’ve encountered many different situations with business clients in many different fields. Such experience makes it much more likely that they will be able to help you locate the exact loan you need when you need it, instead of having to wait around for months in hope that the government gets its act together.
  • Receive a Loan of up to $5 Million- This isn’t a small amount of money you can get either. You can get millions of dollars. Some businesses have fallen into serious debt due to the pandemic making staying viable in these conditions difficult, and they will need a significant amount of funding to keep afloat. Other companies need a decent amount of money to realize their pandemic-specific business plans.
  • Speed-The amount of time it will take to receive your funding is a highly important consideration because your business may not have a lot of time left. While no one has any idea when the government will be sending out more funds for businesses, you can receive a loan from MobyCap in a single day, depending on the situation. If everything lines up right, you could go through the application process online, talk to an agent, and then receive the funds in your account in just a single day instead of months or possibly never.

Many Types of Loans

Another advantage of MobyCap is that you can choose from different types of loans that fit your business perfectly.

For example, there are-

  • Merchant Cash Advances-These let you easily get the cash you need quickly without having to go through a huge process. If you need money now before something bad happens, you should focus on speed.
  • SBA Loans-These loans have requirements on them, including a Fico score over 680, having two years in business, and at least a million dollars in annual revenue. However, they are backed up by the SBA and often allow for more flexibility.
  • Business Lines of Credit-This type of loan is especially useful for small businesses. This way, you can set a certain amount of funding within a limit. That way, you can use the funds whenever you need to do so, and the amount of interest will be based on only what you borrow. After all, you never know exactly what you’re going to need ahead of time due to the chaotic nature of life under a pandemic and the need to wait for government funding. This way, you can minimize what you borrow and cease borrowing altogether if the funds that you need happen to come in from the government at a later date. MobyCap makes sure to get you the best rates possible on this line of credit as well so that you keep your costs low while you try to recover.

Dedicated Customer Service Agents

In these uncertain times, it helps to have a guide. MobyCap will assign those applying for certain loans to a dedicated customer service agent. This agent will help guide you along the way to getting your desired outcome quickly.

With the government often offering dubious guidance as to what business owners should do and when they will even be able to supply support, MobyCap agents will be there to guide you right away. They can make recommendations based on your exact situation and what you need to succeed. They can then help you get those funds as quickly as possible, including as fast as a single day.

Easy to Use and Follow

Unlike the constant uncertainty connected with COVID relief from the government, getting a loan from MobyCap is trivially easy-

Apply

First, you have to apply. You can do this simply by clicking “Get Funds” in the upper right corner of the MobyCap home page.  Then, you’ll have to fill out some information about the loan you’re looking for as well as the specifics about you and your business.

Choose a Plan

Next, you will schedule a meeting with an agent and talk about what kind of plan you want for funding. They will be an expert in business funding and highly motivated to help you get exactly what you need. You can talk to them about any questions or concerns you have, and they will help guide you through finalizing the process.

Receive Funds

Next, the application will be reviewed, if everything goes smoothly, then you’ll receive the funds in your account as quickly as one day.

For more information on how this all works, please don’t hesitate to contact us today. The faster you contact us, the faster we can get started on helping you have the best possibility of receiving the funds that you need as fast as possible.

Invoice Factoring: A Quicker Solution for Acquiring Capital Without Taking on Debt

While every business owner dreams of improving their business to a certain level, one of the biggest obstacles to achieving that dream is delayed access to funds due to unpaid invoices by customers.
Though your customers’ delayed payment is sometimes justifiable, the repercussions of the delay are often huge, sometimes paralyzing some operations of your businesses.
But you don’t have to suffer when quick access to funds is within reach, thanks to invoice factoring, which lets you access funds within just a few days.
The quick access to funds is necessary, especially now when many businesses struggle to access funds, thanks to the pandemic.

Invoice Factoring: Definition
Invoice factoring refers to selling your unpaid invoices (account receivables) to an invoice factoring company, which then provides you with the cash you need to run your business. The account receivables must not be older than 30 days, however, at Moby Capital, we can accept receivables older than 30 days.

Invoice Factoring: How It Works
Once you provide goods or services to your clients and send them an invoice, you provide a copy of the invoice to your factoring company.  If they approve the invoiced customers’ credibility, your company gets up to 90% cash advance needed for the business operations.
While you would wait for up to three months (or even more) to receive your customer’s payment, it takes the factoring companies only 24 to 48 hours to credit your account. However, the amount you receive depends on the factoring agreement, as shown below:

Non-Recourse Factoring: Here, the factor assumes most of the risk of your customer’s non-payment. It has a higher fee structure hence often avoided by businesses. Due to the higher risks involved, non-recourse factoring usually has more stringent requirements. For example, factors may not accept invoiced customers with bad credit ratings. In some cases, the non-recourse only applies when the debtor becomes bankrupt.

Why You Should Consider Invoice Factoring
Your business can benefit from invoice factoring in many ways, as shown below.
Offer Instant and Steady Cash Flow for Smooth Operations
Other alternative financing options like loans may take months before approval. Invoice factoring gives instant cash, allowing your business to operate effortlessly.

Greater Chance of Financial Approval
Many lenders will first check your credit score, collateral, and financial history before considering giving you cash. You don’t need all those in invoice factoring because your invoiced customer’s payment history is just enough.

Provide Financial Flexibility
Imagine not being able to pay your employees on time because several customer invoices are still pending. With instant access to cash, you don’t have to wait till all invoices get paid before there’s money in the account, meaning you’ll never pause business activities due to inadequate funds.

Saves You Money and Time
Your bank may not give you a loan without upfront collateral (buildings, vehicles, equipment, and so on). Since you won’t need to show collateral in invoice factoring, you save lots of time and paperwork. Also, you don’t waste time collecting money from your customers.

Good Customer Relationship
By lifting your shoulder off the time-consuming task of collecting money from your invoiced customer, your business can improve other aspects of the company, including strengthening the business-customer bond.

Get Quick Access to Invoice Factoring 
Are you tired of waiting 30 to 120 days before receiving your customer payment? Wait no more.
At Moby Capital, we know that your business needs instant cash to run its operations effortlessly. That’s why we provide fast, easy business funding of up to $5 million to help companies meet their goals.

Lending Tree Customer Service

Moby Capital provides business loans and alternative financing for private and publicly traded companies of all sizes. While our customers find us in several different ways, we are also a preferred partner on the Lending Tree platform, which is the largest connecter of merchants and business funders. We are proud to announce that for the most recent quarter we were named Top 3 in customer satisfaction among Lending Tree funders. We are extremely pleased to receive this recognition because our customers’ opinions are of the utmost importance to us. We understand the impact the proper financing can have on a business’ growth and do everything in our power to get our customers what they need as quickly and efficiently as possible. We are able to do this through several strategic advantages, including our resources, array of options, flexibility and experienced sales team.

Best Business Loan Company

MobyCap is a direct funder, meaning we can provide financing using capital we derive in-house.Our robust backing also allows us to provide amounts up to $2.5 million, whereas many industry competitors are capped at much lower amounts. For the most recent quarter, our average deal size is over $135,000 which is nearly four times higher than the industry average. We also do deals as small as $5,000, which allows us to work with businesses of all types and in most industries. This ability to help a wide range of merchants has allowed us to build a client base of thousands of companies to which we’ve provided over $1 billion in funding over the last decade.

Flexible Options for Business Loans

We also offer six different funding products, which allows us to leverage the healthiest parts of our customers’ businesses to get them the most favorable rates and terms available to them. In addition to Merchant Cash Advance, which is our bread and butter, we also offer SBA loans, Invoice Factoring, Term Loans, Equipment Financing and Business Lines of Credit. This affords us tremendous flexibility as we create customized funding solutions tailored to each of our clients’ needs.

Business Funding Experts

While we are a very technology-oriented organization, what sets us apart from many others is the human element of every deal. Each of our clients works directly with our dedicated sales agents, who walk them through the entire process and are always available via call, text and/or email. This allows our team to gain a deep understanding of our clients’ businesses, enabling us to make offers to merchants who might be turned away by companies that simply rely on computer programs to underwrite loans. It also helps us recognize when a business loan is not in the customer’s best interests, as we only strive to do deals that are beneficial.

The team at MobyCap plans to continue refining its approach with customer service and efficiency in mind. Given the current business landscape, we understand that our business loans carry more importance than ever to our customers. We take great pride in helping our customers accomplish their business goals and strive to help as many as possible moving forward.

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