For the minority-owned business, it can be incredibly difficult to secure a traditional loan for various reasons. For example, discrimination against the owner’s credit score or the business’ location. If the business is part of an industry considered to be “high risk” by traditional lenders, it will even more difficult to secure the working capital needed.
Just like any other business, without sufficient cash flow the minority-owned business will be unable to cover expenses, purchase inventory/equipment or fund growth and expansion. For this reason, many businesses turn to alternative lenders like First American Merchant. An alternative lender typically specializes in working with business types and industries that are otherwise categorized as high risk. For them, a startup, bad credit issues, minority-owned and limited time in business (among other high risk factors) are not a problem.
Fast Solutions
What an alternative lender can do that a traditional lender typically cannot is provide cash solutions fast. Depending on the lender you choose, capital can be secured in as little as 24 hours (if not sooner). One of the cash solutions offered by an alternative lender is a merchant cash advance. This involves the lender advancing the cash the business needs and then purchasing the business’ future credit card sales. The amount purchased and at what discounted cost are agreed on by both parties. Because approval is based on business performance rather than personal credit, time in business or financials, the business can skip the long wait times experienced with a traditional lender.
Support System
A minority owned business has the potential to help the community it’s located in. However, if the neighborhood is risky in the eyes of a bank, finding business funding will be hard. A startup business cash advance from an alternative lender like FAM offers the support you need to get started and to fuel growth.
Positive Cash Flow
Most entrepreneurs fail to see a positive cash flow during the early stages of business growth. Even the more established business may need extra cash to take advantage of opportunities or meet operating expenses. An alternative lender provides businesses at any stage the money they need to maintain their cash flow.
Seized Opportunities
Many business owners hope their efforts can benefit not only their business, but also their communities. A successful, thriving business can give back by supporting local government and worthy causes. Without adequate capital, a business will be unable to manage their expenses, let alone invest in their community – or any other opportunity that comes their way.
If you are a small business or startup struggling to find business funding, consider what a lender like First American Merchant can do for you. You will not only have the opportunity to secure essential capital, but also an expert support team and a secure platform.