In response to a credit crunch that has made obtaining a business loan more difficult than ever, a California company has created an innovative program for small business owners who need quick access to capital. The program, launched by Performance Commercial Capital (PCC) in 2008, differs from traditional lending by offering loan packages that include flat payback amounts, flexible repayment schedules and discounted merchant transaction fees from credit card vendors, according to company officials. Rather than charging borrowers an interest rate, PCC establishes a flat payback amount for the loan and bases the amount to be repaid each month on the merchant’s flow of business, officials said. The initial loan terms range from 6 to 12 months, but since the monthly payment fluctuates with revenue, the company allows borrowers to take longer to repay the loan without penalties or fees. Since the loan isn’t tied to an interest rate, borrowers also avoid accruing costs. As an added benefit, PCC officials said they will also negotiate with credit card vendors to reduce the merchant fees they charge to business owners every time a customer uses a credit card. While these fees average three to eight percent of each transaction, PCC officials said they can often get them as low as one and half percent. The savings is sometimes so significant that business owners are able to offset the cost of their original loan, according to Jenny Gibbons, a PCC account executive based in San Diego. Gibbons said that while some of her customers have used the loan to expand or renovate, others have used the funding to simply keep their doors open at a critical time. “We are often able to help a business stay in business,” said Gibbons. “They may only need a small loan, but we are keeping them afloat when no one else will give them capital.” Gibbons said that PCC’s application process is also a draw for small business owners; the application is one page, and merchants are asked to supply four months of merchant bank statements and three months of business bank statements for PCC to make a decision on the terms of the loan. Business owners typically have an answer within 72 hours of applying and, if a loan is granted, the funds are deposited in seven to 12 days, Gibbons said. For more information, call (858) 212-2336, or e-mail [email protected].