A crisis like the one caused by COVD-19 puts businesses of almost any size and type into a difficult financial situation. If you can’t get approved for a state-backed funding option or need another financial source, look for alternative resources. If you’re interested in nontraditional business funds during COVID-19 recovery, you’re at the right place.
Alternative Business Funds During COVID-19 Recovery
Federally-backed funding options under the CARES Act give you access to additional working capital. However, they aren’t the best option for all businesses, and many merchants have had difficulty obtaining them.
Let’s see what nontraditional solutions are available for merchants in need of additional funds that’re quick and easy, as well as advantageous to obtain:
- Strategic Investors
These are people you’re already doing business with. They aren’t interested in gaining ownership of your company or running it: they want to be part of it. The advantage is that you can be their customer if they make an investment.
- Equipment Financing
This enables you to have a more predictable cash flow. As a result, your business starts to grow better and increase revenue. This option helps you reserve borrowing power for the situations when you’re in need of funds for your business.
- Merchant Cash Advance (MCA)
If you think a merchant cash advance is a loan, you’re wrong. In fact, the provider buys your future receivables at a discount, and you both agree to the amount of sales being bought and decide on the discounted cost.
Working with a trustworthy alternative online lender like FistAmericanMerchant.com, you can enjoy the safest and cheapest business funds during COVID-19 recovery, including a merchant cash advance. FAM is an award-winning alternative online lender and processor that specializes in high risk business funding and merchant processing.
Let’s draw a parallel between an MCA and a small business loan:
- Community Development Organizations
You can apply for local programs and resources as well. Look for resources developed for business owners with limited access to traditional funding options. Also, search for providers of financial support through funding partnerships with municipalities and community partners.
As you see, federally-backed funds aren’t the only option to consider during COVID-19 recovery. You can also apply for alternative business support programs and business funding providers.