What do you do when traditional financing sources fail you? Sometimes, for various reasons, traditional financing sources will turn you and your business away saying that you are too “high risk”. For those placed in this situation, the need must be filled in order to save the business.
While the economic situation continues to slowly improve after the harsh recession, there are still many businesses out there that are struggling and feeling the effects. Whether it was needing to upgrade/update inventory, not having the same volume as before or increased operational costs paired with lower margins, these situations all leads to the same financial crisis.
Fortunately, alternative lending has stepped in and filled the gap for businesses in need of help. This industry is now booming more than ever before. Many businesses are now taking advantage of merchant cash advances in order to get their business back on its feet.
Contrary to popular belief, a merchant cash advance is not a short term loan or a high interest advance. A merchant cash advance is simply a sale. The provider is purchasing your future sales at a discount. For example, with First American Merchant the amount of sales to be purchased along with what discounted cost is agreed upon by both parties.
There are many advantages of a merchant cash advance that make them much more appealing than a small business loan. Small business loans involve strict credit requirements which can be difficult for business that have struggled through the recession. They also involve long wait periods after application before you are informed whether or not you will receive funding. In addition, you can expect complicated contracts and extensive documentation.
A merchant cash advance, on the other hand, is not as concerned with your business credit. Why? Approval for a merchant cash advance is based on business performance not personal credit, time in business or financials. This is one of the main reasons merchant cash advances have become the popular choice for those struggling to save their business.
You can also receive your funds as quickly as 72 hours from application. No tax returns or financials are required. Unlike small business loans, merchant cash advances also give businesses a simple, flexible program to work with. For example, with FAM, your advance will involve revenue based collections; your payment to the provider is a percentage of your daily sales. The great advantage here is that a slower month means paying back less and when you have a busier month you pay back more.
With such simple and flexible programs, it is easy to see why merchant cash advances have become the go-to solution for those trying to save their business. When shopping for a provider, just be sure that they are a well-known company that specializes in dealing with your particular industry. FAM, for example, provides merchant cash advances to a long list of industries: automotive, beauty salon, construction, dentistry, medical marijuana, restaurant, retail and more.
For a Merchant Cash Advance from FAM, contact us todayGet Started Now