Starting and running a business is never a perfect, smooth process. Obstacles will pop up all along the way, and opportunities will unexpectedly be dropped on your doorstep. These unplanned and unexpected situations are when you will need funds the most. Having the funds you need will determine whether or not an opportunity passes you by and whether or not you sail smoothly through a rough patch.
You might not be able to secure additional funding from a traditional source for different reasons. Your business may be considered high risk due to the nature of the business or simply because you are a startup. In addition, if you have any history of bad credit, traditional sources may not feel confident in offering their services to you.
If this is the case, it is possible to find additional funding elsewhere. Many businesses, especially startups, are beginning to turn to merchant cash advances for funding. When you are in need of funds, you will most likely need them quickly and to do with as you please. Unlike a commercial business loan, a merchant cash advance can offer you both.
A merchant cash advance is not an extended line of credit, nor is it a loan. A cash advance is a sales transaction. It is the purchase of your future credit card sales at an agreed on amount and at a discounted cost.
There will be times when you will need to prepare for your busiest time of year, recover from some unexpected damage or purchase new equipment. When these unplanned situations arise, waiting to receive funds is not an option. With 1st American Merchant Funding, once you have submitted your application, your cash advance can be received as quickly as 72 hours from application.
Merchant cash advances do not require you to reveal where the funds go. Investors and bank loans may require you to do so. Another advantage of a cash advance is that credit is not a problem.
If you have bad credit that you are trying to build, you will be pleased to know that a cash advance does not require a perfect credit score in order to secure one. In addition, because a merchant cash advance is not considered a loan, the advance will also not negatively affect your credit score. This is great news for your startup business. You will have the opportunity to begin building your credit without running the risk of damaging it further.
A business is bound to experience “growing pains”. When obstacles or opportunities arise, take advantage of the alternative funding options that are out there. Just be sure to take your time and explore all the pros and cons of each alternative.
