Merchant cash advances are a generally unknown lending product that is beginning to have a big impact on the small business loans industry. With the recent economic downturn banks continue to deny small businesses access to capital. Many business owners who have been banking with local institutions are being denied loans even with substantial money in that bank. This has led to a growth in private lenders who offer small businesses an alternative.
Merchant cash advance companies offer small businesses an opportunity to sell a portion of their future generated revenues in exchange for immediate money to cover business costs. This tool has proven very handy for restaurants and many other businesses that have substantial weekly revenues. Because the money is immediate and there is no long waiting process business owners are able to capitalize on small business shifts in their local markets and get a step ahead of the competition.
Although the business cash advances come at a premium they are worth the cost. Business owners no longer need to sit idle because they don't have the working capital to grow their business. They now have the ability to purchase new equipment and inventory, advertise in new markets, or just capitalize on wholesale pricing.
Women, restaurant owners, retail stores, gas stations, even medical offices are applying for these types of business loans. As long as banks continue to deny small businesses access to capital it is likely that the merchant cash advance industry will grow until it is a well known product.
Last updated 118 days ago by Merchant Cash Advance