Advantage June 2012
June 2012 Newsletter
From The Top
By Rob Basso
President, Advantage Payroll Services
If you’re a typical small business, you’re familiar with the financial challenges of starting, maintaining and growing your business. And that’s in a good economy. With the financial markets in turmoil, the resurgence on Wall Street not trickling down to Main St and the slow, hesitant growth of consumer spending, today’s economic times are hard to navigate.
So, you’re a business with a storefront, have a steady cash flow, you’re conscientious about managing expenses and you’ve made sure you have a diversified customer base but you’ve hit an unexpected bump in the road, or you don’t have the cash to make an unexpected but important large purchase. Maybe your competitor’s business is up for acquisition, you need to renovate your storefront or you’re a franchise that just got hit with an unexpected brand requirement such as purchasing new equipment to deliver a new product. Bank loans can be slow and time consuming, are paid back over long terms and for restaurants and other businesses without significant assets or receivables, you have no collateral to secure financing.
Where do you turn? Advantage Payroll Services has partnered with a national organization, On Deck, to provide our customers with access to small business financing. On Deck Capital shares in our mission to help small businesses thrive with their mantra to help successful small businesses grow by providing small business loans when traditional lenders will not. They are not a leasing company or a merchant cash advance company. Through our partnership with On Deck, you’ll have access to a special, discounted lending rate as well as an accelerated application process with a decision in just two days, and financing in just seven.
I’ve asked our New Account & Product Coordinator, Caryn Delligatti, to answer a few of our most frequently asked questions to provide you with the information you need. Don’t forget to reach out to Caryn or your customer service representative with any other questions you may have and take advantage of this exciting partnership today.
If you have an interesting topic or would like to offer your expertise to fellow business professionals, consider participating in our newsletter. Please contact us with your ideas and suggestions today at
, or call Christine Cesarino at (516) 931-8400 ext 17.
Q & A with Caryn Delligatti, New Account & Product Coordinator
1. What is On Deck Capital?
On Deck Capital is a leader in the marketplace in regards to small business loans. The loans are from $5,000-$150,000 with a cash flow based underwriting. On Deck Capital makes a decision within 1 business day and funding begins in as fast as 2 business days.
2. What do I need to see if I qualify for a small business loan from On Deck Capital?
If you currently process credit cards and maintain a business banking account, you will need to submit the most current 3 months’ bank and merchant processing statements. If you currently do not accept credit cards or you have a low volume in credit card receivables, then 6 months of current bank statements must be reviewed. You must include every page from the statement with the paper application.
3. Can you tell me how the loans from On Deck work?
Let me give you an example of how the innovative loan product works. On a loan term of 12 months, our payment schedule is broken down into a fixed daily micro payment. For example, if you were to borrow $25,000 from On Deck your Total Payback would range, based on your business performance and credit profile, from $30,000 (Cents on Dollar = 1.20) to $32,500 (Cents On Dollar = 1.30) with a fixed daily payment collected Monday through Friday directly from your business bank account ranging from $116 to $126. And most important, because their loan is a true business loan, your interest is tax deductible and will help improve your credit score upon successful repayment of the loan.
4. What should I be doing once a loan is approved by On Deck?
Remember once approved, the funds can be obtained within 5 business days. You should work very closely with the merchant & the team at On Deck to ensure all closing documents are obtained as quickly as possible.
5. Why are On Deck loans more expensive than bank loans?
There is a reason traditional banks will only lend to small businesses with high credit scores –small businesses can be pretty risky. We know that every small business owner works hard to protect and grow their business, but many close their doors each year. On Deck Capital wants to give small businesses a chance –because sometimes all they need is a bit of working capital to occasionally boost their cash flow and succeed. With this mission to help small business comes risk, and they price accordingly. On Deck Capital loans are still typically up to 50% less than cash advances and the next best alternative to a traditional bank loan.