When you need cash for your business, your first thought may be to look into your own savings. If you don’t have enough savings, or don’t want to take that risky plunge, perhaps you begin to talk to your family and friends. Still, in this tough economy, everyone seems strapped for cash. So what do you do when all of your options run dry? There are two options that can work for you: a small business loan or a merchant cash advance.
Small business loans are a good alternative for accessing an extra line of credit or cash for your business. There are different types of business loans available depending on the bank you choose and even depending on the state you’re in.
Funding time can take anywhere between 30-45 days and loan terms can range between 5 to 25 years, depending on which loan you receive. With many small business loans, personal guarantees are required.
A merchant cash advance allows merchants to receive cash upfront to use for any business related matter. It works very simply: a business will get the cash upfront and then pay it back through their future credit card receivables.
Typically, some of the minimum requirements include:
With merchant cash advance, there are less stringent requirements when compared to conventional business loans. For example, personal guarantees aren’t usually required nor is good credit. Further, funding can take up to as little is one week.
Both the small business loan and merchant cash advance provide opportunities for business to obtain working capital from a wide range of amounts. To learn which one is best for your business, goals, and financial situation, contact one of our funding specialists at 1-800-722-4476.