If you've been turned down for a small business loan, why not think about an alternative source of funding? We may be able to offer you a merchant cash advance, which comes with all of the benefits of a small business loan, but a cash advance is much easier to obtain!
Alternative to Small Business Loans
Starting and maintaining a business can be a very, very costly exercise. Sometimes business owners can find that their finances aren't going quite as well as they'd like – and in order to take their business to the next level, they need to borrow. Borrowing money isn't so easy thanks to banks restricting their lending, however here at Business Merchant Funding (BMF) we don't sing from the same hymn sheet as banks when it comes to lending – even if they've declined your application, we may still be able to help!
A lot of people that are interested in starting a business, lack the amount of capital that they need to get their dream off the ground. As a means to obtain additional funds, a lot of entrepreneurs will apply for a small business loan. If business owners use the funds that they receive properly, then the loan can provide them with a simple way of starting their business. However, obtaining a loan for your small business does have its disadvantages.
The Main Differences between a Cash Advance and a Business Loan
There are a few main differences between a traditional small business bank loan and a cash advance. Firstly, a business loan tends to require a length application process – you may need to submit historic tax returns, and you may even be required to lay down some collateral in order to obtain the loan. A cash advance works totally different though, because the application process is much shorter – and there's no requirement for you to submit tax returns or lay down collateral on the money borrowed.
The Problem with Business Loans
Small business loan repayments tend to be fixed – and any fluctuation in interest rates can send the repayments shooting up. Our repayment terms are much more flexible on the cash advances that we offer, however. Instead of you paying a fixed monthly fee, the repayments on your cash advance as determined by the sales that your business makes going forward. This means that if your business is going strong a higher payment will be made – but if things slow right down, your payments will slow down accordingly. This flexibility is crucial to ensure the long term sustainability of your business.Small business owners that choose to apply for a loan, and are accepted for the funds that they required, will eventually realize that they made a bad decision. You might think that a small business loan is the only viable way for you to borrow the money that you need in order to keep your business ticking over – and you'd be wrong. Merchant cash advances are fast becoming a popular choice for people who are declined a small business loan, and for those people who can't be dealing with long application processes and inflexible fixed monthly payments.