Alternatives for Financing if your Small Business Can’t get a Bank Loan – Consider a Merchant Cash Advance
Small businesses have been hurt during the Great Recession and are now being shut out of getting a bank loan. They have lost customers and now have reduced sales. They have had to lay off employees because there isn’t enough for them to do or enough to pay them. They have lost valuable supply lines. Most of all, they have lost their creditworthiness or so it seems and can’t get business credit or business loans. Banks aren’t willing to do business with small businesses any more, or at least not to the extent they used to be.
Before the recession, just about every thriving small business had an ongoing relationship with a bank that provided them with at least a line of credit. The recession saw these lines of credit dry up. The small businesses can’t revive their lines of credit or even get a business loan with a bank because they have lost their customer base and their sales can’t support their loan requests. In addition, their banks have strengthened their lending guidelines.
What’s a small business to do? Try a Merchant Cash Advance.
Here’s the way it works. When a company gets a merchant cash advance, the deal is the purchase and sale of future credit card income. No regular fixed payments are required by the company. The lender collects a set percentage of the company’s daily credit card sales. – Courtesy: About.comBack To Blog