Business Cash Advances Can Provide Small Business Financing
Small Business Financing For The Self-Employed
There’s no doubt that small business plays a big role in the US economy. According to figures from the US Small Business Administration, small businesses (those with 500 or fewer employees) are responsible for creating between 60 and 80 percent of the nation’s net new jobs. These figures don’t include what the government refers to as “non-employer firms” - those that provide for just one person. Small business financing can be a major problem, especially for the self-employed.
There are an estimated 21 million self-employed persons in the US right now. That’s significant because the data suggest that the self-employment picture has remained relatively stable, even in these weak economic times. Although some analysts expect to see a slight decline in the number of non-employer firms in 2009, self-employment remains a viable option, even in the toughest recessionary period the US has seen in years.
One of the biggest challenges faced by the self-employed is a lack of capital. The self-employed typically self-finance, too. Banks are often unwilling to take a chance on someone who is self-employed - even when the loans they’re seeking are backed by the federal government - because banks are highly risk-averse right now.
One type of self-employment appeals to many would-be entrepreneurs: franchises. The franchise is very attractive to people who are looking to set up their own business, yet need or want the support of one that is already established. Franchising represents a huge self-employment opportunity, provided that the prospective franchisee has the capital needed to get the business off the ground.
Buying a franchise can mean buying an established franchise from another person, or it can mean self-starting a new franchise. Start-up costs range from nearly nothing, to well over a million dollars, depending upon the kind of franchise under consideration. The bottom line is that many prospective franchisees need access to cash.That’s a tough sell to a bank when the applicant has no other viable source of income.
Fortunately, there are lending options that don’t rely on standard lending guidelines. Business cash advances, for example, can provide the cash a small business needs with few of the restrictions that banks would impose. For US-based businesses that accept Visa or MasterCard and have more than $2,500 in credit card sales each month, access to cash can be very easy, using a business cash advance.
A business cash advance can provide access to as much as $250,000 with no restrictions on how the money is spent. Use it to pay bills, buy equipment, make improvements, fund an expansion or whatever else needs to be done. The advance is based on future sales and 95% of applicants are approved.
In a down economy, the self-employed can’t afford to wait for things to get better! Get cash today with a business cash advance.
Photo Credit: Alexander Korabelnikov
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