Entrepreneurs Turning To Small Business Financing Alternatives

If you’re a small business owner today, you know that small business financing is one of your biggest challenges today. Banks have restricted the flow of credit, making it very difficult for small business owners to get the cash they need when they need it. Lines of credit have been pared down or cut back altogether. Sales volumes are down, and receivables are taking longer to collect today than they did just six months ago.

For many small businesses, cash flow is what makes the business operate. Having the ability to tolerate a longer receivables cycle, having the cash on hand to cover unexpected expenses and periodic expenses like payroll taxes, may be the difference between surviving and shutting down.

In the absence of bank lending, small businesses are turning to other options to get the cash they need. One relatively new alternative is the microloan. Microloans are popular in third-world countries and provide small amounts of cash. Often, these small dollar loans come from non-profit organizations that provide start-up cash, or supportive capital for existing businesses. In many cases, microloan recipients are required to pay higher interest rates and take business classes in order to qualify for the loan.

For existing businesses, there is a better option. If your US-based business accepts Visa or MasterCard, and has credit or debit sales of just $2,500 per month, you may qualify for a merchant cash advance through Rapid Capital Funding. A merchant cash advance isn’t like a loan from a bank. There are few credit requirements, no collateral and no personal guarantees. The merchant cash advance provides immediate cash to you. You pay back the advance each time you take in a credit or debit card transaction.

The merchant cash advance isn’t like a loan that hangs over your head each month. The cash advance is repaid on a percentage basis and is tied to your sales. When your sales are low, your repayment is low. When your sales increase, your repayment accelerates. It’s a highly flexible, responsive way to repay your advance because it takes into account the ebb and flow of sales in your business.

What’s more, you’re not required to explain to us what you plan to do with the money. Use the money in whatever way you need to. Pay bills, expand your operations, replace equipment, cover your payroll or boost your cash on hand. Rapid Capital Funding is just here to help you succeed in this tough economy. If you would like more information about Rapid Capital Funding’s merchant cash advance, don’t wait! Contact Rapid Capital Funding today.

Photo Credit: M.Grenner

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