From: Sam Chanin
To: small business owners, restaurant owners in need of cash flow

It makes no difference how long you've been in business or how successful you are when you apply for a bank loan. Banks target certain industries that they do not want relationships with and the foodservice industry is often one of them.

Regardless of the banking world's perception, the nation's restaurants will bring in $511 billion this year, according to The National Restaurant Association's 2006 Industry Forecast.

But while the overall industry outlook numbers are encouraging, under-capitalization remains one of the top reasons restaurants fail. Cash is critical to overcome some of the common money challenges that banks often aren't willing to help you with.

A few restaurant operations, such as Smith & Wollensky, Outback Steakhouse and Boston Market,-have shunned banks altogether, turning to Wall Street instead to meet their financing needs. In general, most restaurateurs don't have access to the stock market to fund company growth and expansion, so they must rely on other methods.

More restaurant owners are turning to funding solutions other than a bank. Banks have traditionally viewed restaurants as a cash business, which raises repayment concerns and often results in the denial of a loan request.

The reality is that 80 percent of restaurant checks are paid with credit cards, paving the way for new funding options. Today, there are numerous companies that specialize in providing working capital based on anticipated credit card sales. This is not a loan; it's a purchase of future credit card receivables.

Many of these alternative funding sources, says Sam Chanin which include commercial finance companies, factoring companies, pension funds, venture capital funds, insurance companies, even credit card companies, have become serious competitors for loans.

These alternative lenders can take more risk than banks, which are held to strict credit standards by federal and state regulators; finance companies are not.

There are often no fixed payments, no fixed-term time frame and no administration fees. Business longevity requirements vary. You're asked to provide proof of minimum credit cards sales over the previous few months, and usually get your cash in72 hours.

These companies will partner with a restaurant to determine an optimal payment plan based on a formula calculated on cash flow projections.

Repayment is automatically deducted from future credit card transactions and takes place over the agreed-upon period. Especially important for seasonal businesses, the repayment will vary if there are wide variations in sales.

With applications as basic as those for credit cards, many restaurants are taking advantage of the rapid service these companies offer.

Often these funding sources offer credit card transaction processing services as well, so they understand the financial's, including the structure of the balance sheet and efficient credit card processing.

Usually, there are minimal requirements for applying, and often a merchant will be required to switch its credit card processor to one affiliated with the company. Traditionally, the affiliate processor will meet or beat your current credit card processing fees. This does not usually require obtaining a new credit card terminal, simply reprogramming your current one, which takes about 10 minutes via phone.

Since a cash advance is a business purchase, not a loan, it is not reported to credit bureaus and there are no closing costs or applications fees. Plus, a poor credit rating, including delinquencies, will not influence a cash advance.

While the rate is often higher than traditional funding, the quick turnaround, minimal requirements and painless application process, coupled with the technology that makes both the advance and repayment seamless, borrowing capital this way can be a good business decision if you use the dollars wisely. ?Sam Chanin

Sam Chanin is the CEO of 2nd Source Funding in New York City, which supplies working capital to businesses. Contact Sam directly at sam@outsideventures.com or by phone at 877-700-7947

Leave long voice mail that loops until reaches max length permitted for messages.  Prerecorded message, no number given in message, no name given in message (all violation of FCC rules even for business numbers).  Filed FCC complaint.

They call every day, always hang up.

They call and hang up.  No other information.  Number appears on caller ID, without a name or business associated with it.  When I called the number back, there was a recording saying it's out of order.

Pre-recorded call

Didn't answer - but long voice mail left on my business line by prerecorded message that looped repeatedly until reached max length allowed for messages.  Did not identify self, did not give number to call and remove from call list.  Filed complaint with FCC.

this number is also related to 877-700-7947 also run by CEO Sam Chanin, i think its a company called tribulonlinecapital.com? They also bother you with credit card processing services. Somebody stop them!!!

They always call during the day when we're not home. Caller ID reads "Business Payment"

FCC has already cited this outfit and Mr. Sam Chanin the CEO.  It's time to pile on.  FTC isn't doing their job.  They need to start levying some serious fines.  FCC also has an online complaint form, as does the State of New York Consumer Protection Bureau (CPB).  Also you can complain to your own state Attorney General and ask that they lean on NY and the Feds.

first a recording from ben about lending money to my buisness so I'm sick of calls on a do not call lised number mine. so I press 1 to talk to the next avil. operator she hangs up I *69 the # get 646-289-8822
Ask for a suprvisor get machiel s she cant even get my name correct and says she doesnt care rude rude rude rude please give me you boss's name and company name and address no she says then Ill call back until you do.. ok!!
she says 877-700-7964 Tim ext 5055

Very rude tele marketers - 2nd source funding

in reguards to the message left by fightback - I am tired of this crap too - I am willing to purchase a domain and start a website that can target lead individuals in these telelmarketing departments.  And suggestions on what to call the website, or what I should add for the innocent like us.  Let me know and Ill get this thing up and running  dave@hitmancartel.com

6462898822 calls regularly with pre-recorded message offering my business a laon or something. This isn't a business, it's my home. Am so sick of these calls all day everyday. I am on the do not call list! I wish these people would get fined!

KEEP IT LEGAL FOLKS.  I FAVOR FINDING THE HOME NUMBERS OF THE CEO's AND CALLING THEM AT HOME.  This number is from a company under various names, "2nd Source Funding" "Tribal Cash" and "Business Payment Systems".  They should not harrass us at home.  The CEO is Sam Chanin and they are based at 3rd Floor, 150 Broadway, New York NY 10038.  I propose we set up a yahoo forum (telemarketing_fightback) where we call them back at work (offering to sell items from our garage) or call THEM at home.  Check it out at http://groups.yahoo.com/group/report_telemarketers.  Let's give back some of the irritation, but PLEASE keep it legal.  By the way, I did manage to call them back on 1-866-602-0996. Of-course they transferred me to a dead answer message.

This # 646-289-8822 was on my caller ID under the name Business Payment.  They let it ring but did not leave a message.  When I saw the name I refused to pick up.  Most times these kind of calls are for fund raisers and say they are not part of the do not call list, somewhat like the politicans and the PAL that call.

Jan. 2 of 2008 started out bright and early with a call from this telemarketer. It's the first I've seen this number. The minions of evil that run this country need to do more than pay lip service to individual rights and privacy by putting teeth in the do not call list. It's a joke as it stands.

646.312.5216

Second Source Funding - automated dialing of residential numbers for business services even though the number is on the don not call list.  

Reported to both national & Colorado violations

Recorded message from Second Source Funding. Do Not Call violation reported.