Business funding options are plenty, but for some merchants it can be tough to secure even the most lenient loans. New regulations are leaving some out in the cold when it comes to finding and securing a business loan, and this can leave merchants and their businesses vulnerable. This vulnerability comes from payday loans and scams that claim to offer you funding, when all they are really doing is ripping you off. Before you apply for an unknown – and possibly a bad deal – loan, consult your merchant account provider.
Most merchants have a merchant account provider to deal with their credit card and debit card processing. PayPal is not a merchant account provider, and while some merchants rely on PayPal, it is a terrible choice, due to its ability to close accounts whenever it deems activity sketchy. Aside from this, most who house credit card and debit card payments are reliable. This reliability makes it the perfect place for you to find business funding.
Business funding is not the same thing as a loan. With a business loan, you are charged a high interest rate (in most cases), have to sign over collateral, and must make large lump-sum payments monthly, regardless if your business is succeeding or not. And if your business closes, you are still liable for repayment, or you will lose your collateral. With business funding, this is not the case. There is no collateral, and interest rates are industry-standard. The payback method is also simple: Every day, a small percentage comes from your credit card sales. If you do not make credit card sales for that day, nothing will come from your merchant account. Business funding options from merchant account providers are not loans; in fact, they are considered to be “buy ins” to your future sales.
Every business needs funding from time to time, and consulting with a bank is usually the worst idea. When you are in need of extra cash for your business, consult your merchant account provider to learn of their offerings. If you do not have a merchant account and accept credit card payments, then it is time for you to look at your options.