Reflecting on the Cash Advance Industry in 2009
2009 has been one of the most turbulent years for business in recent history. Although some more than others, nearly every industry has been touched by the economic downturn, including the business cash advance industry.
At the beginning, this industry was hit by a record number of defaults because of all the business failures. This really hit some of the small cash advance providers pretty hard and many others had to reevaluate their approval policies. This shake-up in our industry has served to strengthen the more established providers.
We have seen many businesses fail in 2009. We have also had the opportunity to save many of those who would have surely failed if they did not have access to the quick and easy funding that a business cash advance provides.
It is our sincere hope that the economic recovery comes in time to save all of those who are teetering on the brink of failure. Our wish is that all of you a very prosperous 2010. If you need working capital for any reason; we will be here for you.
Small Business Owners Ask for Alternatives
In a Capital Access Network Survey, for Quarters 1 and 2 of 2008, 276 small business owners were surveyed an asked to answer questions regarding the availability of business funds. 87% of respondents said that having access to readily available credit is important in today’s economy. In fact, 35% of respondents said that having this access is “very important.”
These statistics show what you probably already know as a small business owner – small business owners need easily accessible cash to grow, develop and maintain their businesses. Unfortunately, getting this cash is not always easy. Over half of the survey respondents felt that they either needed a backup financing plan, in addition to the bank, or that the bank was no longer an option for them at all.
87% of the surveyed small business owners also stated that the bank did not offer any alternatives after declining their applications.
MRI strives to provide an easily accessible alternative to the bank loan. By making up to $500,000 in unsecured business funds available to qualified small business owners, Merchant Resources International is working to boost small business lending and the economy.
Holiday Online Sales Jumped 5% This Year
According to comScore Inc.; online sales grew 5% this season compared to the last holiday season. The growth is attributed to a continued increase in the number of people who are feeling more comfortable with purchasing items online.
Online sales from November 1st through December 24th reached about $27 billion. Because this holiday season had 1 more shopping day than last year; the adjusted growth was about 3.5%.
This increase comes after last year’s relatively dismal performance which saw a 3% decline as a direct result of the recession.
“The season featured a strong start as a result of early retailer promotions and a very strong finish helped by the snow storms that occurred the weekend of Dec. 19-20, retailers’ willingness to offer free shipping later in the season and consumers’ confidence in expedited shipping arriving in time,” according to comScore Chairman Gian Fulgoni.
He went on to say that those retailers who had the foresight to take advantage of social-network marketing were clear winners this year along with those had aggressive marketing campaigns and offered free shipping.
Electronics saw the most online sales growth which saw a more than 20% increase over last year’s figures.
Keeping your New Year’s Resolution with a Merchant Cash Advance
If you’re like millions of other Americans, at the end of every year, you reflect back on the things that you wish you’d done over the past year and vow to do them in the New Year to come.
You start off strong, staying true to the promises you’ve made to yourself, but like a long distance runner who’s running out of steam, somewhere down the line (around March or April), your determination begins to fade and before you know it, it’s the end of the year again. Then, surprise, surprise…your new New Year’s resolution ends up being the same as last year’s…and the saga continues.
Statistics show that every year, 40% to 45% of Americans make New Year’s resolutions, yet after six months, only 46% of those resolutions are maintained.
This year, however, has the true potential to be different, particularly for small business owners, because as a merchant making New Year’s Resolutions that pertain to your business, a merchant cash advance can provide you with the funds you need to execute your business ideas and projects.
Apply for a merchant cash advance now and you could start the year off right…with cash in your hands and the freedom to use that cash for your business without restrictions.
Whether your New Year’s Resolution is to increase your advertising efforts, open an additional location, go green, or anything else, MRI and the merchant cash advance can help.
Get your free online quote now and take the first step to keeping your New Year’s Resolution for 2010!
Home Prices Rise for Fifth Month in a Row
As a homeowner myself, I look at this a fantastic news. But let’s not get too excited. A big part of this rise is because of the government incentivized tax credits and low, low interest rates. But this is still being looked at as a sign that the housing market is stabilizing.
Based upon the S&P/Case-Schiller price index; home prices increased a seasonally adjusted 0.4 percent in October. That is after a .2 percent rise in September.
This comes just weeks after news that existing home sales to a 6.5 million annual rate in November. That is the highest level since Feb. 2007.
We are not out of the woods yet however. Mounting foreclosure and high unemployment continue to threaten the housing market and the economy as a whole.
Did Holiday Sales Rise?
According to data released by MasterCard Advisors’ SpendingPulse, a macro-economic report tracking national retail and service sales, holiday retail sales in the U.S. rose 3.6% from 2008.
The data was compiled from November 1, 2009 to December 24, 2009. According to the report, six out of 10 retail sectors had positive growth and electronics, jewelry, and footwear showed some of the biggest increases in sales (5.9%, 5.6% and 5%, respectively).
However, online spending grew the most with an increase of 15.5%. Still, this increase may be due to several major winter storms that disrupted traffic to brick and mortar locations that seemed to benefit online shopping growth rates, said Michael McNamara, Vice President of research and analysis for SpendingPulse, in a press release.
SpendingPulse officials say that the results of this research may be slightly tempered, as there was an extra shopping day this year.
Take a Look at Your Business
The end of the year is a time for reviewing and reflection. As a small business owner, it is a time to determine what worked and what didn’t; what practices you want to carry over into the New Year and what things you want to change.
We provided you with an overview of our business for the past year. Now it’s your turn. Take these last few days of the year to evaluate your business for 2009. When it’s time to make your New Year’s resolution, you’ll be able to develop one that is relevant and profitable.
Analyzing Your Business
Below are a few areas within your business that you may want to evaluate:
- Financial Position
- Customer Satisfaction
- Employee Morale/Production
- Employee Satisfaction
- Customer Service
- Business Atmosphere/Appearance
- Business Image
For more information:
Merchant Resources International Continued to Grow in 2009, Despite the Recession
2009 has been a very turbulent year to say the least. Some would say it has been the worst year for business since the Great Depression of the 1930’s.
Because merchants come to us in their time of need; we have always been in a unique position to see first-hand, the damaging effects this economy has had on small business owners. We have seen countless businesses forced to close their doors forever and we have felt the effects of this on our company as well.
This recession has brought the greatest number of defaults on our company’s history. Many in our industry have also been forced to close their doors as well. Other have become so strict with regards to approving anyone, you might as well go to a bank.
At Merchant Resources International, we have stayed true to our commitment to offer funding alternatives for those who are having difficulty getting traditional loans, or for those who don’t want to go through the undue time and trouble it takes to get a bank loan.
We have had our share of defaults, but we have also funded more businesses than ever and are setting our sites for 2010 and what promises to be a much more prosperous year.
We offer working capital to hard-to-fund business every day of the year. If you need money, we can help you too. Use the following link to learn more about how a merchant cash advance can help fund your business.
The Morning After
As a retail store owner, the morning after Christmas can be just as hectic as the weeks leading towards it. Unsatisfied gift recipients hit the stores in hopes of exchanging unwanted gifts for something they can enjoy and deal-hunting shoppers scavenge the racks for the biggest discounts.
Now is the time to focus on enticing your post-holiday shoppers, providing them with an excellent post-holiday shopping experience and making sure that your leftover holiday inventory gets sold.
Reeling in Post Holiday Shoppers
Every large retail store is going to be touting huge sales and discounts with commercials, online ads and gigantic signs. Therefore, as a small business owner, you must take a different approach to get shoppers into your stores.
Ideas
- Unveil new items early
- Offer gifts with purchases
- Extend your return/exchange policy
Providing a Great Shopping Experience
- Focus on customer service
- Keep a clean store (increased traffic can cause your store to become messier faster)
Selling Inventory
The Wall Street Journal offers excellent advice on selling excess holiday merchandise. They advise storeowners to:
- Sell inventory through a consignment outfit
- Sell to a liquidator
- Utilize online marketplaces
Is it Too Soon after Christmas to Start Planning Your Business Strategy?
Another Christmas has come and gone. It all happens so quickly doesn’t it? I hope yours was a joyous experience and you were able to relax and spend some time with your family.
Chances are that if you are reading this article, you are already thinking about your business and making plans for the new year. That’s o.k. Your business is important. We understand that.
For many, this past year has taken a tremendous toll on their business. We already know that the coming year is going to be better. Are you prepared?
You may or may not need additional working capital to get you ready for the coming year, but it is there for you if you need it. Don’t let your bad credit keep you from making your business more competitive.
Go ahead and make those plans. Don’t worry about whether or not you can get working capital because there is a very good chance you will qualify for a business cash advance regardless of your credit. And when you’re ready, go to www.cashprior.com
