Applying for a business loan can be a stressful process for some. Today, banks are being much tighter with their money, and are not taking as many risks, especially with small businesses. Being a small business is not an easy thing these days, so many taxes to pay, and if you are a restaurant, you have to deal the rising cost of food and gas. Business loans can be really helpful when you’re feeling the crunch, but the banks are just not as tolerant as they once were. If you have any dependencies on your credit report or a lower FICO score you may not have the opportunity to take out a loan from a traditional institution. If you are having problem finding funding there are other options out there to consider, and we are going to take a glimpse into them now.

A merchant cash advance is one way that you can avoid the complications of getting a loan from a bank. Getting a merchant cash advance is much less arduous than bank loan, but still has the sophistication and quality of service that you are looking for as a business owner. It’s understandable that to some business owners, independent institutions other than a bank might evoke some doubts, but there are actually many reputable companies out there looking to help you. But yes, they are looking for money, too! Taking your time to do some research will help, as with everything, knowledge is key to making the right decision. It would be wise to shop around and see what kind of loans are out there, and what kind of repayment plans are available, as every business will have different needs. Most merchant cash advances can go all the way up to $250,000 and maybe some up to $500,000.

Receiving a business cash advance can be as easy as filling out an online form and waiting to receive a call from a customer service representative. Many loans can be processed as quickly as 5 to 7 days from the day you first applied, receiving the money directly into your business or personal account. If you have problems with your credit, you have a great chance of getting a merchant cash advance, because although they may technically take a look at your credit history, their decision is usually mainly based on the sales of your store.

So if you’re having problems receiving a traditional loan for your business, start looking up some different options. Sometimes you would be quite surprised with the level of quality service you can get from thinking outside of the box. Start by doing some research and see if this could be a possible option to help you out, whether you are having financial problems you need to take care of, need to make improvements to your already open business, or need funds to help with advertising this loan will help you accomplish any of those things.

But one thing bothers the hell out of me and that’s when credit card companies try to hoodwink students into signing up for their product. Sure, this falls into the parameters of learning about the rules of the game, but it’s cheap. The New York Times covered this last Friday in an article entitled, “Colleges Profit as Banks Market Credit Cards to Students.”

If you clicked over to see the article, then I’m sure you noticed the Bank of America table set up at Michigan State University. Anyone who has been to college has seen a similar setup on their campuses – you have a perky representative behind the table enticing students who are walking by to sign-up for their credit card and in return you get a free t-shirt, a gigantic discount at the bookstore, or some other not-really-needed benefit. When I was in college I once signed up for a credit card because they were giving away free t-shirts…which were two sizes too small for me to wear.

Hundreds of colleges have contracts with lenders. But at a time of rising concern about student debt — and overall consumer debt — the arrangements have sounded alarm bells, and some student groups are starting to push back.

The relationships are reminiscent of those uncovered two years ago between student loan companies and universities. In those, some lenders offered universities an incentive to steer potential borrowers their way.

Here at Michigan State, the editors of the student newspaper wrote this fall that “it doesn’t take a giant leap for someone to ask why the university should encourage responsible spending when it receives a cut of every purchase.”

Good for the student newspaper at Michigan State! Keep probing the issue and asking those questions. For example, if Michigan State has this credit card arrangement with Bank of America whereby it profits when students use credit cards (responsibly or not), then with which organization does the university have a contract to teach students how to use credit responsibly? And what are the metrics for either program? In other words, how much has the university generated from its Bank of America relationship versus how much it has spent on teaching its students how to be responsible economic citizens? I’m sure that with Michigan State being a public university that the students can do some digging and find some of this information. The Times article gives this information:

Michigan State University gets $1.2 million a year but is guaranteed at least $8.4 million over seven years, according to its agreement. The contract calls for a $1 royalty to the university for every new card account that remains open for at least 90 days, $3 for every card whose holder pays an annual fee, and a payment of a half percent of the amount of all retail purchases using the cards.

My guess is that the university has no formal relationship to spend any of those millions of dollars on financial education for its students. What a shame? This stuff bothers me because no matter how level-headed you think a college student might be, there is a greater likelihood of them getting into severe credit card debt because of programs like the one above. When I was in college I rang up some $13,000 in credit card debt before I had to have my Mother bail me out (thanks, Mom ). It was a costly learning experience for me – though I must admit that I’m much better off financially now then I’ve ever been and it is due, in part, to having racked up such a ridiculous credit card debt while in college.

Oh, and how many times can I quote stories from the New York Times? Geez! For their part, the Times has a series called “The Debt Trap” where they look at the relationship between increased consumer spending and the lenders providing the dollars for that relationship. It’s interesting – go take a look!

One of my new favorite places to go to read about events in the student loan industry is Student Loan Stories. This is a great blog that covers student loans from all angles and was good enough to post the story linked above regarding how student loans are not eligible for bankruptcy. As someone who still owes six figures in student loan debt, trust me when I say that I knew about this years ago! But this is the type of information that isn’t shared nearly enough with college graduates in terms simple enough to understand. And we all know the garbage that has gone on with the student loan companies and certain colleges being offered kickbacks to recommend one company’s consolidation services over the others.

Disgusting.

Anyway, just putting out the grim reminder that you can’t put your student loans into bankruptcy. Sorry!