Growth January 24, 2014 Last updated September 18th, 2018 545 Reads share

Alternative Funding Options For Small Businesses

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Today small business owners are faced with mounting obstacles.  From shifting industries to rapid technologies and growing competition, the battle of running your own successful business may almost always feel uphill. One thing that provides small business owners with a much-needed boost is working capital.  Being liquid offers flowing possibilities; unfortunately traditional funding options tend to cut the small business owner out.

As an entrepreneur, what path can you take if you have less than perfect credit and zero collateral to offer up?  One increasingly popular answer encourages small business owners’ of all industries to open their eyes to the possibilities of alternative funding.

Serving Small Businesses

In most cases, taking on a business loan is a lengthy, complicated process.  Large businesses need hefty investments, and banks are sure to capitalize on those needs by being picky and precise when it comes to extending offers.

Historically this type of funding attitude has left small business owners out in the cold.  A small cash advance may be all an entrepreneur like you needs, making the lengthy, strict process of getting funded through traditional lenders feel like a misfit.  Luckily an answer of growing popularity can be found in alternative lenders, in this case the merchant cash advance.

Aim For Investment

With a merchant cash advance, you can make a worthy investment back into the growth and profitability of your small business.  By having lenders purchase a future potion of your credit card sales, you will be electronically wired a lump sum of cash.  Use the funds to renovate your small business, purchase equipment or stock up on inventory.  Many small business owners capitalize on the advance by implementing fresh marketing campaigns or bringing on fresh talent that in turn, increase productivity and profits.

The ease of alternative funding like the merchant cash advance continues all the way through its completion.  Repayments will be made automatically though an agreed upon percentage of your daily credit card batches.  As a small business owner it’s likely you will be inclined to renew your cash advance and keep the investments of working capital going back into your business.

Be Saved By Speed

In addition to its inclusion abilities, alternative funding like a merchant cash advance will benefit you by means of speed.  Most lenders require a small application (around three pages) and can extend you an offer within 48 hours.  With funding that can take place in as little as five business days, small business owners can not only answer their funding needs, but they can satisfy them at a rate that works with their ever-changing business.

In addition to maintaining investments back into your business, a merchant cash advance can also come in handy when the unexpected strikes.  Damage caused by natural disasters and thefts cannot wait to be fixed.  Rather than go through the painstakingly long and winding process of traditional lenders, alternative funding aims to work alongside small business owners by being available to help sooner than later.

As the merchant cash advance increases in popularity, lender choices are growing.  Be sure to research lenders ranked by the BBB and only work with those that put your business’s best interest first (i.e. not pressuring you or encouraging you to take more funds than you actually need).  Once you do your homework consider taking the next step to see just how much you qualify for.  Like most things in business, funding is a situation where it only helps to stay tuned in and informed.

What have been you experiences with alternative funding? Share your small business stories with us!

Images: ”Small Business Finances  / Shutterstock.com

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Kelly Gregorio

Kelly Gregorio

Kelly Gregorio writes about management tips and workplace trends while working at Advantage Capital Funds, a merchant cash advance provider. .

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