“Bank Loans Down — Merchants Turning To Cash Advances”

As your roaming correspondent(s) on matters both pecuniary and payment-based, we often find ourselves in the field to get a look, first-hand, at how the “economy” — which is to say, that system of human activity and trade involving goods, services (and various intentions) is faring.

So it was that we found ourselves making some Northern California rounds, and came across this item in the Santa Cruz Sentinel, which brought us home to one of the key items offered by AVP Solutions: Namely, the Merchant Cash Advance.

The Sentinel’s headline noted that big bank loans to county-wide small businesses were down 60 percent. And of course, this isn’t the only county where that is the case. “Three years after the worst of the recession, lending by the nation’s largest banks to small businesses in Santa Cruz County has grown at a snail’s pace, similar to the state as a whole,” it states.

It then quotes Alan Fisher, author of the California Reinvestment Coalition report cited in the article, who “found bank loans to California small businesses in 2012 were off 60 percent from 2007, before the economy crashed.”

“Small businesses normally create two out of every three new jobs in our country but, without banks lending again, we won’t see a strong recovery,” Fisher continues.

One of the problems is that traditional “lenders are wary of making long-term loans at fixed rates when interest rates, which have been at historic lows, are expected to rise.”

One solution cited by the article? “Business owners have been turning to merchant cash advance firms.”  Or MCAs.

Some of the terms cited in the article by these other MCA firms were, of course, more onerous than many traditional loans. AVPS, however, offers easy to work with terms that help many businesses, like yours, get the operating cash they need in challenging times.

An MCA works like this: You sell us a fixed dollar amount of your future credit and debit card sales at a discount. Through an automated process, we retrieve a fixed percentage from each sale as it is settled. The percentage we retrieve from each sale is fixed for the life of the funding–we get paid when you get paid.

Benefits for you include:

*No fixed payments

*No fixed timeframe

*Completely automated

*We get paid when you get paid

If you’d like to find your own way out of the post-recession-no-bank-loan-blues, give your AVPS rep a call today to see how easy it is to set up a Merchant Cash Advance.

And as for Santa Cruz, even if the loans are tough — we still recommend the hiking, surfing, and seafood!

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