VION Expands into Merchant Cash Advance Business

VION Receivable Investments has forged an exclusive arrangement with Strategic Funding Sources, Inc. (SFS) to provide merchant cash advances to middle-market merchants throughout the Untied States. Merchant cash advances are utilized by small businesses and entrepreneurs to fill short-term working capital needs when traditional bank loans and SBA financing are either not available or not practical (from a timing perspective). Under a new program to be managed jointly by VION and SFS on the proprietary SFS platform, merchant cash advances will be offered to middle-market businesses in need of $400,000 up to $3,000,000 or more in short-term working capital financing.

“This agreement combines the resources and receivables management expertise of VION with the industry leadership position in merchant cash advances of SFS,” said Barbara Anderson, Executive Managing Director of VION. “Our capital position and unique skill set enables us offer creative short-term working capital solutions for merchants in unusual circumstances. While banks and commercial finance companies are still hesitant to provide loans to middle market companies for growth, renovation, or acquisition, VION and SFS are willing to provide an alternative funding solution and do it quickly and efficiently.”

David Sederholt, Executive Vice President & COO of SFS said, “Our new partnership with VION enables us to serve this emerging and rapidly growing market segment. Traditionally, our clients have been the smaller single- or double-unit, family owned retail business seeking capital to improve their businesses. The VION relationship now allows us to address the needs of larger multi-unit independent and franchise businesses seeking larger amounts to help fund development and higher-level financial initiatives—a transformational shift for our business and the industry. This alliance leverages the expertise of both companies and provides for speed, flexibility, and creativity in offering alternative financial products to a market in need of working capital.”

The first transaction under the new program closed on February 28, 2011. VION and SFS provided working capital for the “Las Vegas Mob Experience (LVME),” the newest interactive entertainment exhibit on the Las Vegas strip. Located in the Tropicana Hotel, the exhibit tells the story of the Mafia from the early days up to the present time using the most technologically advanced interactive presentation of historical artifacts ever devised. LVME is projected to attract more than 1.5 million visitors annually to its 26,000 square foot facility.

Strategic Funding provides specialty financing to emerging entrepreneurial businesses throughout the United States. Established in 2006, Strategic has its headquarters in New York City and maintains regional offices in Williamsburg, VA; Baltimore, MD; Chicago, IL and Seattle, WA.

VION Receivable Investments, headquartered in Atlanta, Georgia, is an international provider of receivable investment services to businesses managing consumer and commercial receivables.