Every business needs working capital. That is a simple fact. It would be nice of your business generated enough sales to not only cover the cost of doing business, but to also afford the business owner a comfortable living and enough left over to reinvest into their business. If your business falls into this category, my hat is off to you.
But if your business is like the majority if businesses out there that are struggling to get by and does not generate enough cash to invest in itself; you are a prime candidate for credit card factoring, otherwise known as a merchant cash advance. This is particularly true if you are having difficulty getting a loan from the bank.
The only way for businesses to grow in a competitive market is to invest in itself. Whether it is for marketing, relocation, remodeling or expanding; you need to spend money to make money.
I tried to get a loan from a bank but was turned down
If you can get a loan, you should try that first. The problem with bank loans is that they are getting more and more difficult to get approved. Even with all of our stimulus money being poured into our financial system, banks are still not loaning money to the people who need it most; the small business owner.
Other problems with bank loans include;
It takes several weeks to get your money: If you need money in a hurry; a bank may not be your best option. A cash advance takes 10 days or less.
They require collateral: If for whatever reason you are unable to pay back the loan; they will come after your personal assets. Merchant loans are a form of unsecured loans.
You need to submit your plans in writing: It is up to the bank to decide how you will spend your loan. A merchant loan does not restrict how you spend your money.
The benefits of bank loans
The real clear benefit of a business loan from the bank is cost and the amount of time given to pay back the loan.
Every business can benefit from getting a merchant cash advance if it is invested wisely. There are many other benefits to getting a merchant cash advance not mentioned in this article. Use this link if you would like to learn more about a merchant cash advance.