Attaining A Merchant Cash Advance In Tough Fiscal Times
If you have spent the last two years with your head in the sand, you may not understand that the economy is hurting. Even if the pundits have declared that the collapse is finished and we are moving towards better times, proprietors looking for funding from small business loan professionals are still experiencing a lot of obscurity in borrowing money.
Perception Vs Realism
There is a widespread perception that small businesses are more likely to fail during these times. One of the most commonly quoted statistics is that just 1 in 10 new businesses make it to their fifth year. This myth continues even though data has, time and again, shown these numbers to be gravely incorrect.
Repetitive investigations have publicized that today's small businesses close not 90% of the time, but rather they shut down only 60% of the time, over a five year period. Those numbers are virtually equal to every other type of new businesses. So who perpetuates the legend?
Persons in the know in the business arena believe it is the banks that really keep this urban legend alive. Why? By maintaining this horror, they have the ability to charge steeper interest rates, propose less favorable conditions to entrepreneurs, and request ridiculous levels of securities; and that is if they are even prepared to advance money at all.
Where Can You Get Capital?
If you have completed your first year of business, then a excellent resource of funds is actually sitting on your counter. That credit card machine is directly linked to your merchant cash advance provider. They are willing to provide you with funds in the form of a credit card factoring agreement. You sell, at a discount, a percentage of your potential revenues to the business cash advance company and they make available the desired cash right away.
Factoring agreements rarely have any fees linked with the application, you are told of your approval within a day or two, and the money is made available in about 7 days. Now that you understand that you don't need to go to the bank to fund your establishment, you have no reason to linger.
by: Rodney RabahAbout the Author:For many years, Rodney Rabah has served as a reputable source of information regarding Small Business Loans. For honest answers and guidance on Business Loans visit him at Nations Advance.