Small Business Financing Alternatives In High Demand

According to a report by the National Small Business Association, the number of small business owners who say they can’t get financing has nearly doubled in the past two years. More than 40% of small business owners say that they have no access to capital from banks and other lenders. This cash crunch is sending them on the hunt for small business financing loan alternatives.

Small business financing is critical to job creation, says the Small Business Administration, which claims that small businesses in the US are responsible for creating about two-thirds of new jobs in today’s economy. Unfortunately, new small business loans fell by one-third in 2009 and this lending pace doesn’t look to improve anytime soon.

So small business owners are looking for small business loan alternatives to provide the cash they need to keep their doors open. Small business loan alternatives include funding mechanisms like Rapid Capital Funding’s business cash advance. With a business cash advance, a small business sells a portion of its future credit and debit card sales in exchange for cash. To repay the advance, a smalal portion of each sale is then used to repay the advance, while the rest comes back to the business owner.

Credit card factoring is nothing new, but more small businesses are looking for creative ways to get the small business financing they need through more cooperative lenders. For more information about credit card factoring and to learn whether it’s a viable small business loan alternative for your business, contact Rapid Capital Funding today!
Photo Credit: DreamShoot by Marcel Steger, via Flickr

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