Owners of businesses in all types of industries are looking for small business loans. Even Business Week online features an article focusing on the problems restaurants are facing during these times and the things they are doing to cope. “For the past several months, restaurant owners have begun to deploy a host of cost-cutting measures and incentives to keep their tables filled and turning over,” states the website.
The problem, is getting a small business loan now may not be as easy as stealing candy from a baby.
Hair salons, restaurants, convenience stores, auto repair shops – they could all benefit from a small business loan. But what do they all have in common, besides being able to benefit from an extra dose of cash? They are all merchant businesses also known as retail and/or service-oriented businesses, allowing them to meet one of the very few requirements for receiving a merchant cash advance, a type of small business loan developed specifically for merchant business owners.
Why Small Business Loans are Important
Small business loans help small business owners to perform all of the necessary duties that come along with owning a business. Inventory purchases, equipment upgrades, renovations, advertising, etc. are all important facets of running a successful business, but none of these things can be accomplished without cash.
With small business loans, business owners can get the cash they need and repay it a little bit at a time, giving them the opportunity to capitalize on the loans they receive.
How Small Business Owners Can Utilize a Merchant Cash Advance
Merchant cash advances are just like small business loans as business owners can use them to fund various ventures. But merchant cash advances are easier to get and the payback is more convenient.
Usually, to be eligible to receive a merchant cash advance, a small business owner must have a business that they have owned for at least four months and that processes at least $5,000 in monthly credit card sales. That business owner must have at least one year remaining on his/her business’s lease, and have no unresolved bankruptcies.
A small portion of the merchant cash advance is repaid every time customers use their credit cards to make purchases. When they use their Visa/MasterCards in an establishment that has received a merchant cash advance, a small percentage of the sale goes towards repaying the merchant cash advance.
Even though small business loans are becoming more difficult to attain, the importance of business funds remains. Small business owners can choose a merchant cash advance as an alternative.
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