While millions of people dream of one day launching their own business, the biggest obstacle between their dream and actually starting their company, is the funds. Access to cash is undoubtedly the biggest problem most people face. Although, merchant cash advance for small business can change all of that.
Merchant Cash Advance For Small Business
In order to get your business off the ground, you generally need at least a small amount of seed money to launch. Depending on the business, start up costs can range anywhere from few thousand all the way to the hundreds of thousands of dollars. Most people assume that unless they have an exceptional amount of money saved up, they’ll have to turn to the bank for a loan, or even attempt to max out their credit card. Both of these choices can seem daunting and discourage budding entrepreneurs from pursuing their dreams of opening up a business.
“According to Statistics Canada, small and medium sized businesses with one to four employees have the lowest loan approval rate. The challenge is that these businesses traditionally have less of a performance history and limited resources to grow their business, which makes it a riskier proposition for the lender”, states The Globe and Mail.
Dipping into savings and taking away from your future nest egg may not be the best way to fund a business. And going into debt on your credit card, with a fixed interested may not be the best idea for a business that’s just starting either. But where else can small businesses turn? The answer is merchant cash advance for small business.
A merchant cash advance is a purchase of future debit- and credit-card sales. Business owners receive cash for future revenue, and in return, funders recoup their advances by automatically withholding a percentage of daily electronic transactions until the initial amounts are repaid, plus interest. The merchant cash advance for small business application process is quick and the cash can be in your hands with in days.
In an article published by the Globe and Mail, one entrepreneur explains that if merchant cash advance for small business wasn’t an option he wouldn’t have been able to take advantage of a large vendor discount on inventory that’s only offered in the off-season. “We made major inventory purchases at excellent prices,” he explains. “The discounts were significant enough to make it more than worthwhile to hold this stock until our season.”
Whether you need to take advantage of a good deal, capitalize on your timing for expansion, buy new equipment, or simply to start up, a merchant cash advance for small business could be the answer.