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Why Return on Investment (ROI) can be
More Important than Annual
Percentage Rate (APR)
ROI
APR
REVENUE
PROFIT
While the cost of business funds is an important
part of the decision making process when
seeking a short-term business lo...
How an Automotive Parts Store owner look
beyond APR and uplift revenues and increase
profits with a short-term loan
The Parts Store Owner had a one-time buy
opportunity to purchase inventory for his store at a
price point significantly be...
Solution: Our Short-Term Business Loan
1) Borrowed $25,000
2) Time to Repay: 4 Months
3) Cost of Funds: $7,500 (1.3 Factor...
This would have been a lost opportunity for the
business owner had he just looked at the APR of
120% and decided that the ...
Look beyond the APR for the potential LOST
OPPORTUNITY to improve ROI
Contact Us to discuss how we can assist you
with you...
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Return on Investment vs Annual Percentage Rate

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Why Return on Investment (ROI) can be More Important than Annual Percentage Rate (APR) for US Based business owners.

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Return on Investment vs Annual Percentage Rate

  1. 1. Why Return on Investment (ROI) can be More Important than Annual Percentage Rate (APR) ROI APR REVENUE PROFIT
  2. 2. While the cost of business funds is an important part of the decision making process when seeking a short-term business loan, lost opportunity can be more costly. Why?
  3. 3. How an Automotive Parts Store owner look beyond APR and uplift revenues and increase profits with a short-term loan
  4. 4. The Parts Store Owner had a one-time buy opportunity to purchase inventory for his store at a price point significantly below wholesale prices. He knew that he could turn the inventory quickly and realize additional revenues and profits. However, he lacked the liquid cash necessary to take advantage of this opportunity Solution
  5. 5. Solution: Our Short-Term Business Loan 1) Borrowed $25,000 2) Time to Repay: 4 Months 3) Cost of Funds: $7,500 (1.3 Factor; 120% APR) 4) Additional Gross Revenues Realized: $100,000 5) Additional Gross Margin Realized: $67,500
  6. 6. This would have been a lost opportunity for the business owner had he just looked at the APR of 120% and decided that the cost of funds was too rich. If he had not borrowed the funds to take advantage of the one-time opportunity, he would have lost $67,500 in incremental revenues.
  7. 7. Look beyond the APR for the potential LOST OPPORTUNITY to improve ROI Contact Us to discuss how we can assist you with your next short-term business loan The CashXchange Group 800-313-6433 jacobs@cashxchangegroup.com

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