Finance/Capital Access

An SBA loan is the most common type of loan for purchasing a franchise.  Because the SBA provides up to an 85% guarantee to the bank, banks are more willing to assume the risk of lending money to a “start-up” business. It’s a common misconception that the SBA approves loans. The SBA only provides a guarantee to the bank; if the bank is a PLP lender (Preferred Lender Program) then the bank is still the entity approving the loan.

A bank will typically require you to provide 20% to 30% of the total cost of the business and the needed working capital.  For example, if you need $150k to purchase your franchise and $50k in working capital, for a total project cost of $200k, the bank would want you to put $40k to $60K towards the project and the bank would provide a loan for balance.  In addition to the capital injection the bank will require some form of collateral.  This can be a combination of business and personal collateral such as the equity in your home, real-estate or other investments.

Banks all differ on what criteria they focus on when deciding whether or not to approve a loan. These parameters are known as the bank’s credit box.  Some banks place more emphasis on your credit score, other banks may be more interested in the amount of collateral you can provide.  Some banks may avoid certain industries because they already have enough exposure to that industry in their loan portfolios. (more…)

The Crowdfund Investing Industry has been gaining momentum every day, yet its impact is still only a fraction of its full potential for the economy. Our question to you is… will you be ready when it blows up into “the next big thing’?

Crowdfunding is changing the economic landscape. This latest wave of disruption to investment and finance may be the most profound and beneficial so far – or ever. So it’s imperative for financial advisors to learn about how the meteoric rise of crowdfunding opens access to new sources of funding via these new, more broadly accessible internet-based funding models.

If you serve as a financial advisor or financial service provider, understanding this paradigm shift for the economy will put you in a position to provide insights, advice and leadership to your clients and those around you. Sources for practical, hands-on crowdfunding information are emerging. (more…)

Offer your customers a choice with PIN and signature debit options at the point of sale. The more payment options you offer, the more customers you can attract.

Linked directly to customer checking accounts, debit cards are one of the fastest growing payment methods today. First Data offers debit processing with signature- or PIN-secured debit cards so customers can access cash, buy goods and pay bills.

You’ll be able to provide customers with a quick and secure way to pay and have the ability to offer cash back with a purchase. For the customer, this means time savings with fewer trips to the ATM. We have a wide range of debit acceptance POS equipment options for you to choose from. Did you know that PIN debit can be less expensive to process than credit cards? So you may save money while offering your customers the payment options they want. (more…)

What is EMV?

EMV is a technical standard that ensures chip-based payment cards (also known as smart cards) and terminals are compatible around the world. A chip-based payment transaction occurs when a microprocessor embedded in a plastic card or mobile phone connects to an EMV-enabled POS terminal (either contact or contactless) in order to execute a payment. The smart card technology provides an additional form of card authentication for the transaction—validating the legitimacy of the payment type being used and helping reduce the use of counterfeit, lost and stolen payment cards at ATMs and retail points of sales.

Implications of Smart Card Adoption

Payment industry experts generally agree that a chip-based standard (i.e., EMV) will come to the U.S., but predictions of when and in what form vary dramatically. Smart card adoption in the U.S. is an industry-wide issue, and there is substantial education required for all participants to understand what chip-based payment enablement means to them. In the face of this uncertainty, merchants should start considering how smart card implementation would affect their businesses, and look into options for accepting chip-based credit and debit cards. (more…)

Most chargeback situations arise at the point of transaction — at the time the transaction is completed — and most can be prevented with a little training.

Consider these 16 tips to avoid potential chargebacks.

1. Do not complete a transaction if the authorization request was declined. Do not repeat the authorization request after receiving a decline.

2. If you receive a “Call” message in response to an authorization request, call your authorization center. Be prepared to answer questions. The operator may ask to speak with the cardholder. If approved, write the authorization code on the sales receipt. If declined, ask the cardholder for another Visa card.

3. If an embossed Visa card is presented for payment, make an imprint for all card-present transactions. If you have a point-of-sale terminal with a magnetic-stripe reader, swipe the card through the reader for every face-to-face transaction. If the terminal isn’t working or a card’s magnetic stripe cannot be read, key-enter the account information and make an imprint of the embossed information onto the sales receipt using a manual imprinter. (more…)