Making Money Online

I’ll begin this article by making a confession: I got suckered into a get-rich-quick-online scheme. I get a ton of unsolicited ads e-mailed to me day in, day out. Most of them get caught in my SPAM filter, but occasionally an ad makes its way into my inbox. I usually delete them, but for some reason, I decided to open one of them.The e-mail was very well-written. You know how sometimes you can just tell that an ad or an e-mail is a scam? This wasn’t one of those e-mails. It looked so real, so professional, that I eventually clicked over to the company’s website. It also looked very professional. Still, as I was reading about all of these people who were making big bucks online, the little voice inside of me was telling me that it was a scam.Basically, this company claimed that for $39, they would send me instructions on how to start making money online immediately. Their website said it had something to do with putting “posts” online. Frankly, I didn’t really understand what that meant or how that would make money for me, but the offer came with a money-back guarantee, so I gave it a try.My gut told me that this was a scam and my gut was correct. They did, in fact, send me some information. Perhaps the information they sent me really would have taught me how to make money online, but it certainly wouldn’t be “easy” and it had nothing to do with simply putting “posts” online. It was all about building websites from scratch and then somehow making money from those websites. I know nothing about building websites, so I was overwhelmed by the prospect of building a website a day.I felt foolish for ever ordering this product, but happy that I had their money-back, no questions asked, guarantee. I requested a refund immediately. A few days went by, and I hadn’t received a response from the company. I contacted them again, and a few more days later, I contacted them still again. All I received was an automatic response telling me that they received my refund request and that they would work on it.$39 isn’t a big amount of money, but I felt scammed and wanted it back! I ended up contacting my credit card company and filling out a fraud report. Within a week or so, the money had been refunded to my credit card. I don’t know if I finally got my money back because I filed a fraud report or because the company just finally got around to processing my refund request. Either way, it was a huge hassle.I understand the appeal of earning money online, really, I do. But I would warn anyone to steer clear of any company that tells you that you can make big money doing something really simple online. Listen to your gut! If it seems to be true, it is!Even if you order something that turns out to be a scam and get your money back, you will be inconvenienced and waste a lot of your time. Be very careful when it comes to making money online!

Is Credit Card Receivable Financing and Merchant Cash Advance the same?

Credit card receivable financing (CCRF) – as an alternative funding option for small business is growing in popularity and – for a lot of good reasons. However, some business owners still confuse (CCRF) with merchant cash advance (sometimes called business cash advance or cash advance) which is the “more well known” of the two funding options simply because merchant cash advance (MCA) has been available longer and has been heavily marketed by credit card processing sales people for years while CCRF is still relatively new.It’s true that there are similarities in how the loans are repaid and how a business qualifies for them, but there are also characteristics that have to be explained because the benefits each offer are different in how they might impact a business and the reason for selecting one over the other.Credit card receivable financing is actually a type of accounts receivable financing, which uses a merchant’s cash flow from future “credit card sales” to repay the loan instead of the “typical” Accounts Receivable, Invoice or Purchase Order Financing. CCRF is governed by usury laws, and is reported to credit agencies. CCRF is structured as a true, regulated loan, which explains why it is a less expensive option than Cash Advances. And as such it can have a positive impact on credit scores.To repay the loan, debits – (a small fixed percentage, usually 10-20%) are automatically taken from each future credit card transaction, meaning there is no need to write a check for payments and future credit reports from this loan show a consistent history of on time payments. There will also be no late fees or missed payments to worry about.Business owners often prefer CCRF over MCA because, as a loan, it offers these benefits in addition to a “funding rate” that is typically 50 to 80% less than a Cash Advance. The term “funding rate” is used instead of interest because it is not the typical “APR type of interest” that is calculated over the length of the loan, etc., but a fixed percentage that is added to the loan and to be paid back in addition to the amount that is borrowed.Another benefit to CCRF is that it is not always necessary that the merchant switch processing services in order to get the funds as is the case with most MCA. So, if a business qualified for the CCRF it is probably going to be the owners first choice – however, as mentioned previously both are excellent choices as alternative financing when a business does not qualify for a traditional loan due to length of time in business, less than perfect credit, lack of collateral or not meeting other bank requirements.Merchant Cash Advance (MCA) or Cash Advance loans for years have been used when small and mid-sized businesses like restaurants and retailers needed “short-term” working capital loans to expand, remodel, advertise or for other business improvements. These “loans” have been available to business through processing companies when a bank loan was not an available option due to the borrower not meeting requirements of the lender. You will notice the quotation marks when mentioning loan because a MCA or Cash Advance is technically a “purchase” of the merchants future credit card sales so the lender has some security that the “purchase/loan” will be repaid, usually over a 6 to 12 month term, by debiting a percentage of future credit card sales until the loan is paid off. With MCA the amount debited is not necessarily a “fixed” percentage and can fluctuate based on criteria established by the lender.For a company that accepts credit cards as payment for their product but is unable to qualify for financing through “traditional” lenders, CCRF and Cash Advances are an excellent alternative with CCRF being the less expensive option.The CCRF does have more requirements that the merchant must meet in order to qualify which explains why it is usually 50-80% less than MCA. However, the basic requirements for each are just about the same. In both cases the applicant can be approved in 24-48 hours, funding can be in as little as 5 days and funds are wired into the merchant’s business bank account. The qualifications are:
A company must be in business at least one year
Has accepted Visa/MC as payment for their product/service
Has processed a minimum of $3000 in Visa/MC per mo. for past six mos.
Has no open bankruptcies, foreclosures or liens
Has a minimum FICO score of 500 or higher
Is current on mortgage and commercial lease
Has at least one year remaining on business lease or owns the propertyBusinesses, particularly retailers, auto repair shops, restaurants or merchants that take credit cards as payment and who do not qualify for traditional funding options can look to CCRF or MCA as a viable alternative for short-term working capital.This option is especially important in today’s economy with many banks unwilling to lend and retailers seeking inventory or marketing capital for the holiday inventory or promotional needs.

How To Leverage SRED (SR and ED) Tax Credit Financing And Factoring for Cash Flow

Leveraging your SRED (SR&ED) Tax credit via the financing and factoring of your claim is a responsible way to maximize cash flow and working capital. It’s all about timing, and if your firm requires additional working capital financing the ability to cash flow or discount your claim for working capital today is a clear and viable option.Canadian business owners that partake of the program in Canada clearly have recognized the benefits of research and furthering their competitive position in product and services. Although tens of thousands of firm take advantage of the program we are always amazed at the number of our clients that either have not heard of the program, much less take advantage of it.Let’s do a short primer on the program, and more importantly, the financing aspects of your claim. And trust us, we are not talking about going to your chartered bank for that financing, as this type of financing is somewhat boutique and niche requires specialized financing and financing assistance.The federal SRED program is s of course for private companies that qualify for a non repayable tax credit, in effect a grant from the government for a large percentage of their R&D spending. Your ability to recover that cash flow is of course a very positive aspect, but, the ability to finance your claim as soon as it is filed, ( in some cases before ) simply is one more alternative in today’s challenging cash flow environment to monetize a short term asset and turn it into cash flow.So how does SRED (Sr&Ed) tax credit financing and factoring work? We use the term factoring because its becoming more broadly understood and accepted in Canada – so what we are simply saying is that your SRED (sr&Ed) claim is in effect a receivable, and in the same manner that you would consider financing a receivable is really the same logic and methodology around a SRED financing.Is it difficult to finance a Sr&Ed? We keep that explanation to our clients very simple. If you have a SRED that has been prepared by a qualified consultant or accountant and your company has viability then your claim is finance-able. Is that complex, we don’t think so.Have you ever applied for any type of business financing before? What was involved? – Typically it was filling out an application, providing back up documentation, and clarifying, if required to a business lender, any information that required explanation. Guess what, that’s the SRED process also.A claim can be financed in a matter of weeks, which we think is a very typical time for any type of business financing these days. After a basic business application and review of your SRED a term sheet is issued. Typically the main collateral for the financing is of course the SRED claim itself. In Canada its typical to receive about 70% LTV for your claim, meaning that if you calim is 300k you would receive immediate financing for 70% of that amount. Whats the monthly payment clients ask? Here’s the good news, there is none. You put that cash flow to work and when your claim is finalized, adjudicated and paid by Ottawa then you receive the other 30% of your claim, minus of course the financing costs, which typically are in the 1. 5 -2% range per month.Speak to a trusted, credible, and experienced Canadian business financing advisor on how SRED (SR&ED tax credit financing and factoring works. Cash flow today from a government non repayable grant – How could you not consider that option!