Wednesday, October 31, 2007

A little off the merchant cash advance subject - a ceremonial first pitch of the 2007 World Series - Boston Red Sox vs. Colorado Rockies

While this particular post doesn't have much to do with the merchant cash advance industry (other than the fact that I'm the President & CEO of a merchant cash advance company), this was something I did that was too cool not to post the video, throw out a ceremonial first pitch for Game 3 of the 2007 World Series.

Thursday, October 25, 2007

Merchant Cash Advance Blog - 2007 Industry Funding Estimate

I have received several emails in recent weeks asking me what I think the current size of the merchant cash advance industry is. While there has been no formal report / survey ever conducted, I have done some informal research talking to several of the major players in the space (and have ideas of what most are doing) and I believe an accurate number for 2007 would be $1 billion in merchant cash advances funded in 2007. I estimate this number is up from $500 million in 2006 and will only continue to grow over time. Any feedback on this projection / estimate is welcome.

Wednesday, October 24, 2007

The story that doesn't want to die - the AdvanceMe Patent Invalidation

Yet another industry article about the invalidation of the AdvanceMe patent. This one is titled Time's up for one cash advance patent and was featured in The Green Sheet and written by Adam Atlas. Editor's Note: Adam is an industry attorney and I've personally used him and highly recommend him.

Wednesday, October 10, 2007

Merchant Cash Advance Companies Coming And Going

While a day doesn't go by that you hear stories of new companies popping up in the merchant cash advance space, I think you are also going to start seeing some merchant cash advance companies exiting the space and/or going out of business. For example, I've heard rumors that Acacia Funding has or is about to exit the merchant cash advance space.

I don't think most people realize the complexity and risk of this business. On top of that, companies are paying commissions out to brokers and agents that make it virtually impossible to turn a profit. Unfortunately some of these companies (and agents, brokers, ISOs that sell for them) will learn the hard way.

As an agent, you want to make sure you are working with a company that has the proper experience. High commissions by someone entering the industry may seem attractive, but a) it can't last long b) if they go out of business, you will most likely lose the backend residual associated with the deals you brought them.

AmeriMerchant has been in the merchant cash advance space for over 5 years and we have a very good understanding of what works and what doesn't and every indication shows by our explosive growth that we will be here for the long term. If you are a reseller / agent / broker for a merchant cash advance company, you want to make sure they have a viable business plan and they will be here for the long run too, unfortunately many will not.