Business owners are always going to need to find a way to finance their companies, and for the longest time, the most common method of gaining business funding was by going through a bank loan. However, times are changing – and rapidly. Though traditional bank loans still lead the pack in terms of business funding sources, alternative funding options are quickly gaining traction. Currently, over 30% of small businesses have received funding through cash advances, and that number is growing steadily. Here’s why it’s happening, and why you shouldn’t expect it to stop anytime soon.
- Banks haven’t been issuing out loans as much as they used to. Banks are increasingly tough to impress, and though it used to be easy to get a bank loan, even seasoned business pro’s are now seeing it as an uphill battle. In many cases, good businesses just can’t get a break with banks. As a result, they need to turn to other funding methods.
- Merchant cash advances don’t pay attention to credit score. Good credit is hard to come by these days, and most loans will take it into consideration. If you have bad credit, one of the only options out there that you can rely on will be a merchant cash advance.
- They are extremely attainable, regardless of industry. Traditional loans are limited in terms of which industries they serve. Merchant cash advances can be offered in almost any industry, and have acceptance rates of over 80%.
- Up until recent years, most people didn’t know merchant cash advances existed. It’s true. They just weren’t advertised as well as they could have been. After about 10 years of obscurity, merchant cash advances are finally becoming the mainstream staples they should have been all along.
- Unlike traditional funding methods, cash advances only take a couple of days to complete. Most traditional banks will accept applications, wait several months for a decision, and then wait for several weeks before they disburse the funds. Cash advances only take 3 days to disburse funds and approve offers. Businesses don’t always have the time to wait. At times, waiting can actually cause businesses to go bankrupt. As a result, a merchant cash advance becomes a welcome savior when timing is everything.
- We live in the age of innovation. It’s true. Innovation is a huge perk of living in the modern age, and people are beginning to see the status quo as old-fashioned. The stigma behind alternative business funding is fading rapidly, and that means that people are beginning to embrace it.
Merchant cash advances are extremely popular – even for larger companies. If you haven’t considered getting a merchant cash advance, you might want to think about it. In many cases, a merchant cash advance is the best thing you can do for your company’s funding needs.