Lending Options For Small Business Owners

Small Business Owners have very few options left in today's economy for raising working capital for their businesses. The "SBA" or Small Business Administration has left these owners with the belief that they exist to help the little guy...WRONG.

Alpha-Omega Financial There must have been some sort of mix up in the advertising message the SBA was sending. In order to receive an SBA loan from an SBA approved bank you must meet the following criteria.

• You must have a personal credit score of at least 700
• The funds must be used for acquiring an existing business that had a profit the previous year, expansion of an existing business or a commercial mortgage.
• You'll need to show financial records and tax returns from the previous couple of years.

I can keep going with all the terms of an SBA loan but to sum it up, an SBA loan is not for new businesses, not for small businesses that have fallen on some difficult times and NOT to assist small business owners. The SBA provides some insurance to banks that may lend their money so that the bank doesn't lose out if the loan isn't paid back. Understand this, it is a bank's decision whether or not you receive the funding you need. For the past couple of years especially after 9/11, the banks have tightened up and haven't been as generous with their lending.

Banks are notorious for turning down certain industries that they deem as "TOO RISKY". Two such industries are small retailers and restaurants. It is almost impossible for anyone without a personal credit score of over 700, assets to use as collateral and equity in a home to get funding from a traditional lender.

With the onslaught of declined funding applications, new alternative financing companies have taken over the task of lending these industries the funds they need. One such funding source is Alpha-Omega Financial Corp

Alpha-Omega Financial Corp took a look at the small retailer and the restaurants that were being turned down by the banks due to lower than acceptable personal credit scores. With the understanding of the struggle many small businesses face. Alpha-Omega Financial Corp looked beyond the personal credit of the owner. Most small businesses start up using the personal credit of the owner and sometimes the owner finds it impossible to keep up with all the payments on a timely basis. This is what effects the credit score of the individual but has absolutely nothing to do with the profitability of the business itself.

Alpha-Omega Financial Corp looks at the assets of the business, its customers. By looking at the past income of the business through its VISA and MasterCard sales, Alpha-Omega Financial Corp can advance the business money on its future sales. This allows the business to purchase needed inventory, make renovations, buy equipment, expand or use a lump some of money for any purpose as long as the projected credit card sales can provide the money to pay back the advance. The beauty of this type of funding is that only a portion of the VISA and MasterCard sales are used to payback the advance and fees that are charged. The owner of the business retains 100% of its cash, other credit card sales, checks and debit card payments. Most retailers and restaurant owners take up to 6 months to pay off their advance but have the opportunity to pay off the advance anytime after the first 30 days. The fee is charged each month the original principal amount is in the possession of the business owner, so it is the owner that decides how long they will need the funds and at what cost.

Other benefits of this type of alternative financing are; the businesses does not have to give up equity or collateral, the owner can have as low as a 515 credit score, sometimes lower with a guarantor, there are no out-of-pocket expenses or closing costs, no financials or business plans. The basis of the advance approval are the businesses previous 6 months of bank statements, previous 6 months of credit card processing statements, personal and business credit history, landlord, bank and trade references. Fees are tax-deductible. You can obtain an advance in as little as 10 days.

In order to meet the criteria of Alpha-Omega Financial Corp, Cash Advance Program, the business must have at least $5000 per month in VISA and/or MasterCard receipts, be in business for at least 2-years and provide the necessary documents for funding approval. It's a fast, easy way to receive the funds needed when traditional lending institutions have turned you down.

To find out more about this alternative funding program, visit,

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