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Business Cash Advance Offers Flexible Capital For Small Business |
Article Submitted by: T. Ireland
Saturday, 02 January 2010
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Operating a small business can be very rewarding, both personally and financially. While multinational corporations employ millions of people in this country, studies suggest that small businesses employ more than half of those Americans not working in government. Not only that, but according to government figures, 64 percent of net new jobs created over the course of the past 15 years have been through small businesses. One of the key factors holding back small business growth from becoming even more important to the economy is the difficulty in obtaining Business Loans. It's not just the fact that many banks are reluctant to lend to small businesses, but their lending practices often require personal assets for collateral, extended underwriting timeframes or strict controls on spending capital (a lack of flexibility that severely restricts small business owners). Small business operators need an alternative to obtain working capital and according to the US SBA Office of Advocacy, this is increasingly being found through credit cards; specifically companies offering the option of a Business Cash Advance.
To understand how this alternative works and the advantages it offers to small business operators over bank loans, consider the case of Rapid Capital Funding, one of the best known companies offering merchant cash advance products as an alternative solution to conventional Business Loans.
By its nature, a small business is more flexible than a big company, but artificial restrictions can make it less so. For example, a small business owner may recognize an opportunity for expansion and be able to move immediately to take advantage of this new market, where a large company would typically be held up for months in feasibility studies, management reviews and other procedural roadblocks. However, once the large company commits to doing something, it often has cash reserves at its disposal to fund the new venture, or easy access to Business Loans. The small business operator usually has no mass of cash reserves to draw upon and approaching most banks about Business Loans often ends in frustration. However, a Business Cash Advance through a funding company like Rapid Capital Funding allows the small business operator to receive as much as $250,000 in as little as 72 hours. The advantages of going this route include no collateral, no closing fees, no application fee, no personal liability and a high (95%) approval rate.
The Business Cash Advance also offers another advantage over conventional Business Loans. Instead of being locked into a set monthly payment that is required in full, regardless of revenues, a Business Cash Advance is paid back through a percentage of monthly credit card transactions; if credit card sales fall off during a particular month, the amount paid by the small business operator is similarly reduced. Article Source: http://www.ArticleBlast.com |
About The Author:
Emily Haggar is an accountant who's helped many small businesses obtain Business Loans for expansion and capital purchases. However, financing through a bank can be difficult, so Emily often points clients toward a Business Cash Advance instead.
Emily Haggar is an accountant who's helped many small businesses obtain Business Loans for expansion and capital purchases. However, financing through a bank can be difficult, so Emily often points clients toward a Business Cash Advance instead.
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