How Retail Store Funding Can Help Your Business
The downward spiral that small businesses nationwide are experiencing is further exacerbated by the worst “drought” of bank lending since 1945. A survey carried out by National Small Business Association (NSBA) survey discovered during a query in December 2009, that 39% of business owners found it difficult to find proper financing for their businesses.
Those businesses that have been incurring large debts in the use of credit cards will have realized that this method is becoming less dependable for urgent-situation financing. It is estimated that greater than 33% of business owners use credit cards to finance over 25% of their operations, notwithstanding 79% attest to the worsening of credit cards terms during the past year or so. Consumer spending is moving up on the graph, but still has a long steady climb before approaching an acceptable position with respect to improved revenue.
The aforementioned illustrates the whole rational behind the increase in retail store funding through the use of merchant cash advances. Companies that process card sales find console in repaying their business cash advances through monthly credit card sales; the reason for this being the repayment of the advances by way of future credit card sales, where no collateral is necessary making this an unsecured loan.
The Dilemma faced by Retail Store Owners
It’s a known fact that a large amount of banks and traditional lending institutions often reject loan applications for financing from retail stores.
Most banks and conventional lending sources will often turn down loan applications for retail store financing. In spite of a loan applicant’s good credit rating, banks are still reluctant to grant loans, (usually considered small and insignificant) to small retail enterprises. This leads to the undesirable situation where these businesses often lack the working capital to carry on their business operations.
The Business Cash Advance – How Can it be Used?
You are eligible once you accept the main credit card providers like Visa and Master Card. Involving ongoing and future credit card sales. If your retail store business allows the use of Visa, Master Card, American Express or Discover Card, you become a prime candidate for this kind of funding. The key advantage is that one can repay a loan without affecting his or her daily cash flow.
Some Popular Uses:
- Cash available for restoration and growth
- For better cash flow management
- Bulk purchasing of business equipment and supplies
- All-purpose working capital use
It is gratifying for a business owner to experience the freedom in acquiring a loan without requiring to place restrictions on the use of those funds obtained. Apart from having the cash for immediate routine needs, the business owner -manager will be at ease in controlling his cash flow and maintaining a secure level of working capital.