Why Alternative Funding is Increasingly Popular Among Small Businesses
We are currently living in a very unique economy. Though many important indicative numbers regarding the economy (such as GDP and job creation) have been steadily increasing since the great recession of 2007-2008, one key aspect of the economy has failed to bounce back: the accessibility of external funding to small businesses.
Many banks are now hesitant to offer traditional loans to small businesses. This does not reflect the potential that small businesses offer, rather it is a reflection of the increased caution that financial institutions across the board are now exercising. Unfortunately, however, it has reduced the potential of many small businesses. (After all, external funding is crucial in the modern economy.)
Savvy business owners have responded by discovering new forms of funding. This has driven a renaissance of non-conventional business funding practices ranging from crowdfunding to business credit cards and everything in between. One of the most important forms of non-traditional business funding is the merchant cash advance.
Merchant cash advances allow businesses to receive instant funding in exchange for a percentage of future profits. Their popularity has been driven by their accessibility (they are generally not dependant upon credit scores) and their business-friendly repayment plans (which, being based upon profits, are far more flexible than conventional loans.)
Another highly advantageous aspect of merchant cash advances is the speed at which they operate: Allied Capital, for example, offers same day approval and next day funding. Contrast this with the long and complicated process by which conventional loans are processed and it becomes even easier to understand the growing popularity of Merchant cash advances.
If you believe a merchant cash advance could be right for you, contact us today at ACC funding. We take great pride in helping small businesses of all kinds achieve their dreams!