Types of Small Business Funding Companies
According to the Small Business Administration, which oversees the nation’s some six million small businesses, problems in obtaining adequate and timely funding are the main culprits in causing small businesses to fail. As businessmen who have worked closely with many small and medium-sized businesses over the years, we at Get Business Advance have seen first-hand the problems this places on small business owners in managing their cash flow.
Our goal in creating Get Business Funding was to provide funding to small business owners who might otherwise be unable to obtain it elsewhere. Studies, after all, have shown that more than 9 out of every 10 businesses in the U.S. are unable to obtain bank loans because they lack sufficient credit or the necessary collateral.
Let’s face it…all businesses at some time or another need operating cash or working capital for a variety of purposes…
- Pay Bills or Taxes
- Broaden Operations
- Start or Expand an Advertising Campaign
Finding the extra cash isn’t usually a very easy task. Most merchants turn to their local bank for a loan or a line of credit. Most people find this a very daunting and time consuming task for many reasons…
- Mountains of paperwork
- Invasive investigation into your financial history
- Requirement for Personal Guarantees and Collateral
- High Interest Rates
- Endless fees
- Long approval times
Many people go through this long process just to find out at the end that they were not approved and are left feeling not only disappointed but angry as well. Declined Loan Applications happen for a variety of reasons including but not limited to…
- Bad or No Credit History
- Too Little or No Collateral
- Bank or Lending Institution feels the Applicant Lacks the Ability to Pay Off the Loan based on Income
It’s at this point when many people start looking around for alternatives to get the cash they need. The lucky ones have already discovered the speed and ease of a Merchant Cash Advance.
A merchant cash advance is like an Anti-Loan because…
- There are NO Interest Rates
- There are NO Hidden Fees
- There is NO Fixed Payment Schedule
- There are NO Closing Costs
- There will be NO Loss in the Equity of Your Business
- NO Personal Guarantees are required
- There is NO Need to Post Collateral
In most cases the money is delivered to you as a lump sum for use as working capital in return for the purchase of a specified amount of future MasterCard and VISA credit card sales. It is like factoring, a well known process for generating cash flow for businesses, only here cash is advanced based on an event that has yet to happen – your anticipated credit card sales based upon historical performance.
Other Advantages Merchant Cash Advances have over Bank Loans are…
- QUICK & EASY Application Process
- FAST Approvals (With In 24-hours)
- HIGH (90%) Approval Rate
- RAPID Funding (2-3Business Days)
- FREE Use of Funds (No restrictions on how the money is to be used)
- Will NOT show on a Credit Report
In our opinion a Merchant Cash Advance prevails over a Bank loan hands down but ultimately the decision is up to the individual business owner.