Many business opportunities, expansion plans and tight situations require that a business owner act fast. However, if funds cannot be accessed quickly, opportunities are lost and/or the business can find itself in a dangerous situation. For example, insufficient capital makes it impossible to cover payroll and purchase new equipment.
According to the National Small Business Association’s (NASB) 2016 year-end economic report, “Despite a significant shift in outlook, small business access to capital remains stubbornly unchanged with just 69 percent of small firms able to get adequate financing.”
This same report stated that, as a result of this lack of financing, “Sixteen percent of small firms were forced to lay off employees as a direct result of their inability to garner financing.”
If you’re in a hurry to find business funding, you’re likely already familiar with the obstacles small businesses face. Traditional bank loans involve endless documentation requirements and excessive wait times – waiting periods that mean you could miss out on opportunities to grow and expand. Not to mention, banks require specific collateral and credit requirements before they’ll even consider working with you.
Merchant Cash Advance
When a business finds itself in this situation, one of the most popular solutions is the merchant cash advance. For the merchant looking for fast small business loans, this is an ideal option. An alternative funding solution to the traditional bank loan, a cash advance is not a short-term loan, or a high interest advance – it is simply a sale.
Essentially, the merchant provider you choose purchases your future sales at a discount for an agreed upon amount. (The amount and at what discounted cost is agreed upon by both parties before the transaction takes place.) This allows your business to quickly access the cash it needs when it needs it.
There are many advantages to applying for a cash advance. First, businesses considered to be “high risk” can easily secure a cash advance from a high-risk specialist like First American Merchant. In addition, credit scores below 500 are approved, and merchants receive cash in as little as 72 hours, if not sooner. Traditional lenders, on the other hand, can make you wait weeks (or months) for an answer, only to find out you’ve been declined.
If you need working capital, consider what a merchant cash advance can offer your business in flexibility. FAM’s cash advance boasts a high approval rate, fast funding and renewals, a hassle-free payback process and revenue based collections. Seize opportunities when they arise, hire new employees and stay ahead of the competition.