New York, NY (PRWEB) June 25, 2012
Yellowstone Capital is a leading name in the world of creative financing. They’ve been at the very forefront of industry innovation over the past few years and have been branded “trendsetters” by many familiar with the trade. Yellowstone Capital has recently announced their intentions to redefine the cash advance concept, now allowing them to advance to even larger, conventional business clients.
The concept of merchant cash advance originated several years ago during a time when conventional financing was still readily available through banks and other lending institutions. Merchant Cash advances served as a tool for companies who found credit hard to come by from the larger lending institutions. What evolved as a creative, revenue based alternative was called merchant cash advance, where a portion of the future revenues of the business were sold to an investment bank, and then delivered to that bank going forward as they developed during the normal operations of the business. With eligibility restricted to businesses that accepted credit cards as a method of payment (due to the payback terms), this concept had a very specific niche market. The specific receivable stream allocated was the credit card portion of the future revenues, and the method of delivery to the bank was a mechanism called "split funding". This meant that the credit card processor directly "split" the batch revenue, and sent the bank their contractually pre-agreed portion directly off the top, thus taking credit and cash flow out of the mix from an underwriting perspective.
In recent years, as conventional financing has gotten more restrictive and harder to obtain, Yellowstone Capital started getting calls from larger businesses that were not eligible for the advance concept as it was then structured due to the fact that they did not accept credit cards as a method of payment. These were financially viable businesses, with verifiable revenue streams and strong prospects, so Yellowstone Capital set out to amend the merchant cash advance concept to serve their needs as well. This was achieved by introducing the business cash advance concept. Both the underwriting and the payback are now keyed off the total gross revenue as evidenced by bank deposits, and the payback method has changed to ACH. This has opened up the future factoring finance method to countless potential industries and customers who, because they didn’t accept credit cards as a payment method, had previously been ineligible. Businesses were now eligible to receive up to $3,000,000 in financing for their business.
Yellowstone Capital announced that with the implementation of new strategic partnerships with like-minded funding sources, they can now offer premium type deal structures. These are larger advance dollar amounts with lower cost points and they are longer term than the cash advance industry norm. Where standard deals are typically structured at a six month turnaround, and sometimes at a more situational specific two to three month turnaround, the new premium programs mean there are now approvals consistently getting funded at 12 to 15 month terms, at dollar amounts 3 times what was previously available. If you're a business generating revenue and need an additional line of credit for your business, regardless if you process credit cards, take a look at our site and apply today.