Several times cash checking businesses are depositing well over $100,000 a month and simply cannot get funding. Under any other circumstance, in any other industry, you would be able to receive anywhere from 60-100% of your deposits.
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Tampa, Fl (PRWEB) November 20, 2013
Trouble In Paradise For Check Cashing Industry?
If you are in the business of cash checking you’ve probably found that business can be doing very well, but it’s tough, almost impossible to gain access to financing options.
The reason is simple. Check cashing businesses are in direct competition with lending institutions, particularly the banks. This means that traditional lending options can basically be whipped off the page as an option. The banks dislike these cash checking business so much that they make it virtually impossible to set up business bank accounts in which the business can operate.
In speaking with Director of Funding at Business Credit Ally, Nick Bentley, Bentley states, "We speak with business owners everyday who have these issues. In fact, several times cash checking businesses are depositing well over $100,000 a month and simply cannot get funding. Under any other circumstance, in any other industry, you would be able to receive anywhere from 60-100% of your deposits depending on a few different factors."
As the conversation continued we came to find out that there are several industries that are on the "restricted list" (check cashing at the top of the list) for banks simply because of the niche they operate in. Even private lending institutions like OnDeck Capital cannot provide an answer to over 20 industries.
"It's the fact that regardless of industry, these entrepreneurs need access to financing just like any other business would," Bentley continued. "Over 83% of the Forbes fasting growing companies operate by financing debt. The thousands of business owners in the restricted areas are no different. They need to have an option."
To date, Bentley noted that over 100 business owners in the check cashing arena have used their services for financing their cash checking businesses.
"Business owners, particularly in the "restricted industries" have very good margins relative to some other industries. It's this fact that allows Business Credit Ally to extend working capital to businesses in outside of the box industries," Mr. Bentley concluded.
Business owners who operate in industries considered shunned by traditional lending institutions, can find a solution with underwriters at Business Credit Ally. To find out more about business financing for check cashing business go to http://businesscreditally.com/check-cashing-businesses/