Raharney Capital, LLC Releases 2012 Underbanked Merchant Profile

A First Glimpse at Businesses That Seek Merchant Cash Advances and Cash Flow Loans

Online PR News – 05-February-2013 – New York, NY – Raharney Capital, LLC (RC) is releasing data from a yearlong analysis to reveal what they believe to be the profile of an underbanked merchant. RC captures and aggregates data through their loan networking service at http://merchantcashadvanceindustry.org.

The typical small business seeking financing has annual revenue between $120,000 and $600,000. 15% of them do not accept credit cards as a form of payment. 32% accept credit card payments but not enough to make traditional merchant cash advance financing worthwhile. This means that almost half of underbanked small businesses are best suited for a merchant cash advance alternative such as a merchant loan, ACH advance, or other type of cash-flow financing program.

RC is committed to making these alternative options available to their clients. Their lending partners have reported a surge in funding non-merchant cash advance transactions.

The states with the most application activity originated from California, Texas, and Florida, statistics that came as no surprise due to their large populations. The only anomaly was Florida since it has half the population of California and yet produced nearly the same amount of application volume. Floridian small businesses appear to need the most support.

The underbanked merchant is typically too small for banks to lend to. RC was pleased with the results however because the average applicant is well within their scope of expertise. They also help larger businesses quite frequently, with the maximum loan size being $2 million. RC intends to make announcements when material data points in the underbanked merchant profile shift.

About Raharney Capital, LLC
Raharney Capital, LLC was founded by Sean Murray, a merchant cash advance industry veteran and consultant. The company operates a business loan networking service in addition to Merchant Processing Resource, an independent online publication.

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