Bank loan vs. merchant cash advance
Banks: your fast and flexible funding resource. That doesn't quite ring true, does it? If you hope to get a loan from a source as traditional as a bank, you need to have plenty of time, plenty of patience, and a stellar credit history. That's especially true in this economic climate, where credit and credit sources are drying up. In response, banks are tightening their lending policies even more than in the past.
So what do you do if you're a small business owner? The economy is affecting your business, too. You may well find yourself in need of funding to help you weather the storm, as consumers keep a tighter grip on their wallets. It seems as though help from the banks is drying up in direct correlation to when you most need it.
Now is the time when it can make smart business sense to look into a merchant account cash advance. As opposed to the banks' practice of restricting funds just when they're most needed, a merchant cash advance fluctuates in concert with your business. The amount you pay off each month depends upon your credit card sales. Thus, when business is rolling in, you'll be paying more as you're making more. However, when your sales are low and it's hard to meet your obligations, your payments on the cash advance are lower, offering you relief. This advantage helps not only in times of severe economic fluctuation, like these, but also for businesses that are regular affected by calendar cycles.
Another advantage to this type of funding is its speed. Whereas a bank's loan paperwork can take months to process, you can often receive a merchant cash advance within 7 days. Yes, you do need to have some business history with a record of credit card sales. However, if you meet those standards, you will find the application and approval process quick and painless.
So, stop trying to find that corporate banker who's accommodating and understanding and willing to find some middle ground for the two of you to meet on. If you're anxiously searching for a way right now to help your business get through these times, you will be more likely to find help through a merchant account cash advance.
