California Feels The Pinch Of Unemployment

According to the California State Economic Development Department, unemployment in the Golden State rose above 10 percent for the first time in at least 25 years. January figures show that state’s jobless rate to be 10.1 percent, and revised December unemployment figures show an unemployment rate of 8.7 percent for the last month of 2008.

Last year, California had an unemployment rate of 6.1 percent. Nationally, January’s unemployment data showed that 7.6 percent of the nation’s eligible workers were idle. The EDD said that sharp declines in certain industries, including finance, construction, information technology and retailing were responsible for the jump in unemployment. Currently, more than 1.8 million Californians are out of work, more than double the number of job seekers in January 2008.

Small business is responsible for about 70 percent of all new job creation, but according to statistics from the California Manufacturing and Technology Association, the private sector has created only 15% of the new jobs in the state since 2001.

To help stimulate the state’s economy, the California legislature has passed new tax credits for homebuyers, as well as new tax incentives for corporations. The state stimulus package also includes incentives designed to encourage small businesses to hire more workers.

For some small businesses, simply surviving the recession is critical. To do that, some business owners have turned to alternative financing options that provide the cash they need when they need it. Merchant cash advances are becoming popular with retailers and small business owners. A cash advance is based on a business’s average monthly credit and debit card transactions and can provide cash in as little as 72 hours.

A business cash advance leverages future credit card sales, allowing the business to get funding immediately, and pay it back as the transactions come in. Businesses can receive as much as 1.5 times their normal monthly sales, and pay back the advance at the rate at which the transactions come in. When business is good, the advance is paid back faster. When business is slow, the advance is paid back at a more relaxed rate.

The flexibility of a merchant cash advance is one of its most attractive features. The advance payment doesn’t rely on a merchant’s credit, so good credit or bad, you may still qualify for a merchant cash advance. For more information on how a merchant cash advance can help your business, contact Rapid Capital Funding today!

Photo Credit: Billy Alexander

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