Many businesses struggle from time to time. From high risk businesses to mainstream businesses, the struggles can mirror each other. One issue that can arise in high risk businesses that may not affect mainstream businesses is the lack of business funding options. While a mainstream business can get a bank loan with a decent interest rate, a high risk merchant cannot. This can leave high risk merchants in a bind, trying to find funds to help save their business.
High risk merchants should look for alternative business funding solutions. While some turn to crowdfunding sites, this is often a failure from the start. First, it takes a lot of social media presence and following to get the funds that you need. Second, many sites require you to provide something in return for certain donation amount, which can cripple a struggling business. So, for most high risk merchants this is not the option. What is the option is a merchant cash advance for ACH advance from your merchant account provider. These are two alternative business funding solutions that are meant for two different types of merchants: those with merchant accounts, and those without.
For those with a merchant account, a merchant cash advance can get you the funds you need in as little as 72 hours. The application process is simple, and can be finished on a tablet, computer, or smartphone in many cases. Also, the interest rate is not high. To obtain a merchant cash advance, you need to have been in business at least six months. It’s that simple. FICO’s under 500 can apply, which is something that could never be accomplished with a bank loan. For a merchant without a merchant account, you can apply for an ACH advance, which sends funds to your business checking account. The criteria is simple for this program: FICO of 500 or better, less than three chargebacks per month, and a minimum of $10,000 revenue per month. For both programs, the payback process is simple; in fact, so simple that you do not have to write a check. The funds are removed from your merchant account or business checking account with every sale.