All start up businesses need funding. While some are fortunate enough to do the funding themselves, or with a partner, the majority of new merchant need a funding source outside of their social or family circle. There are many options around, but not all options work with everyone.

There are also many questions to ask: How much do I need? Where can I get funding? Who is a reputable funding source? These are just a few questions that small business merchants ask when they are looking for a funding source. You need to make sure that whomever you choose, and whichever method you choose, that it is reputable. This should be common sense, but sometimes a good interest rate or a pretty website can distract us. You need to do your research on these companies, by looking at their BBB (Better Business Bureau) ratings, and ratings among the processing industry.

Also, there is no “set rate” for how much a business needs. Every business is different, from its size, offerings, location, and owner. Everything is taken into account when you obtain small business funding. The latter is typically a problem, especially if the owner has bad credit. This eliminates most bank loans and credit cards as funding options. Bad credit merchants should look for a small business cash advance that is geared toward those with bad credit, like the one offered by FAM. A small business cash advance is not a loan; in fact, it is an advance in your business’ future success.

The biggest difference in a traditional loan and a small business cash advance is the payment method. With a traditional loan, you are expected to pay back your loan almost immediately, regardless of your business status. With a small business cash advance, the agreement between you and your processor is fair to struggling and new businesses. You pay back an agreed-upon percentage when your company makes a profit. The payments come directly from your merchant account, or business account, so there are not wasted checks or trips to the bank. This is the preferred method for many in the industry, but it is not as highly publicized as a traditional loan.

While a small business cash advance is the best option for those with bad credit, it is also the best option for those with good credit. Every merchant needs to make sure that whomever he or she chooses to obtain a small business cash advance with is reputable and experienced in his or her industry. Choosing the wrong cash advance provider can be disastrous, so do your homework first.

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