There are many obstacles that exist that can hold your small business back among them being lack access to funding. Small businesses currently face the challenge of being able to survive the first couple of years of business with about 20% of them failing by their first year after opening and up 80% by their tenth. One of the biggest reasons for this is issues in cash flows management which according to a bank study, has contributed to the failure of 82% of small businesses in the country. Small businesses interested in receiving funding usually have to jump through multiple hurdles to qualify to receive it from banks and other lenders. Many, however, get rejected for various reasons such as poor credit, the industry the business operates under, weak cash flow or lack of collateral. For a small business just starting out, it can be difficult meeting those criteria which is why many turn to alternative finance options to build capital for their business such as crowdfunding, grants and pooling money from family and friends.
As the struggle to get financing continues, a growing number small businesses are now taking the non-traditional route when it comes to getting funding in other sources such as merchant advances which is the purchase of future credit card income from a business allowing them to repay the debt they owe at an adjusted rate taken from the business’s monthly credit revenue. Merchant cash advances in a sense function in the same way as a loan with a couple of exceptions. One of them includes the lack of strict terms when it comes to where the money can go to which recipients can choose to spend on necessities such as new equipment, inventory or other expenses. Merchant cash advances do not require good credit or collateral to qualify to receive and there’s little to no paperwork needed to apply because all applications are done online. They are typically more flexible than business loans when it comes to the industries that can receive funding and approval rates are usually higher as well. With all of these benefits, merchants can turn to MCA providers such as us at Smart Business Funding to get the funding they need at terms that work best for them. If you’re a small business owner or a merchant whose had trouble acquiring financing from lending institutions in the past, call or text us at Smart Business Funding at 917-533-2979 and we’ll be able to assist you with all of your funding needs in no time. Don’t let banks or poor credit chain your business down and call us today!