Merchant Cash Advance For New Entrepreneurs

In a Dun & Bradstreet small business survey, released in May 2000, small business owners were asked why they decided to go into business for themselves and were given the option to name more than one reason. 41 percent said they joined a family business, 36 percent wanted more control over the future, 27 percent were tired of working for someone else, and 5 percent experienced downsizing or were laid off.

You may fall into one of these categories, or you may have your own reason for diving into entrepreneurialism, but one thing all small business owners have in common, is the need for business financing to grow their business.

According to the small business administration, commercial banks and other depository institutions are the largest lenders of debt capital to small businesses. The SBA says they accounted for almost 65 percent of total traditional credit to small businesses in 2003. And according to the U.S. Census Bureau, 77% of people use their own money or family assets for business startup funding.

Some entrepreneurs already have sufficient funds for their business. Others go to various sources to come up with the money they need, and still, many new entrepreneurs think they have enough money to operate a successful business, but a few months in to their ventures, they realize that they are going to need more if they want their businesses to succeed.

Fortunately, new owners of retail businesses have a special option for business financing; the merchant cash advance. A business owner who has owned his/her business for at least four months can receive a merchant cash advance by completing a short application and providing the last four months of his/her business's credit card statements.

Merchant cash advances make it possible for owners of retail businesses to get business funds, and repay them through their businesses' future credit card sales. These payments are made automatically, eliminating the need for a borrower to make fixed monthly payments. This may be an excellent benefit for small business owners, as in 2006, Focus Credit reported that 52 percent of people surveyed say they've made late payments on bills and/or credit cards.

Business financing should no longer be a problem for new owners of retail businesses. These problems may be able to be solved with a merchant cash advance.

Article Source: http://EzineArticles.com/1626253

Secured and Unsecured Small Business Loans for People With Bad Credit

If you run a small business but have a poor credit rating, either due to your business's struggle or your own financial hardships, you know that getting a loan for the next phase of your plan will be difficult. However, in today's changing financial landscape, many lenders understand that poor credit happens to more people and businesses, and they are more open than ever to grant small business loans for bad credit.

Here is a brief look at the two types of loans that you can shop around for as you seek to boost your small business: Secured Business Loans and Unsecured Business Loans

When having bad credit, a secured small business loan is easier to come by, obviously, because you are putting something up against the value of the loan. The types of collateral that you can use in obtaining these types of loans can range from inventory to equipment, from property to accounts receivable. The understanding is that if you are unable to pay the loan back, the lender will take your printing press or office building, for example.

The good news is that the interest rates for these secured loans are far better than the option described below. Many times, a business simply needs a cash infusion to get to the next level, so a secured loan might be just what the doctor ordered to set you on the road to prosperity. Remember the advice given by many moguls: expand when you can, but don't overreach. If you see the opportunity to set up shop in a second location that is primed for your wares, you need to seize it before the competition does. Getting a small business loan for bad credit could make or break your future.

Unsecured small business loans for bad credit can be considered a form of cash advance for your business. They are often based on your future credit card sales, so only certain types of businesses are eligible for these kinds of loans. You usually have to own a business that is in the retail sphere, or a restaurant or service-oriented business that accepts credit cards. You also usually need to provide the prospective lender with six or more months of bank statements, credit card statements and a lease agreement if you have one.

This type of loan is only for the desperate. The exorbitant interest rates charged (30+% at times) can easily drain away all profit, so you had better fall into one of two categories when seeking this kind of loan:

a) You have nowhere else to turn for a cash infusion,

b) You are sitting on a sure thing and looking to grow rapidly.

You also want to be very cautious about getting linked with a lender that gives unsecured loans. Make sure that the institution is legitimate and approved by the Better Business Bureau. There are many sharks out there, but you don't have to swim with them.

Small Personal Loans - Considering Cash Advance

If you are in dire and immediate need for money and the need could not wait until the day of your salary, you are left with one good option - take a cash advance loan. Cash advance has been designed to provide borrowers money at the soonest possible time. It is now one of the popular small personal loans available to borrowers.

Why People Need Such Loan

Many people search for small personal loans especially when they need cash abruptly. Some need such products on a regular basis especially if their needs could not wait until the next payday at work. Cash advance is one good available option, especially for employees whose companies or employers are offering such minor credit facilities as among employee perks. The payments are automatically debited from the paychecks of the employee/borrower.

Things That You Should Know

Statistics show that the number of people taking cash advance loans are constantly rising through the years. It is an indication that peoples' salaries are often not sufficient to cover the spending needs of many employees. Before you consider taking a cash advance loan, you must be equipped with the necessary knowledge. Here is the basic information you should know about such small personal loans.

Ease Of Processing

Processing a cash advance loan is easier compared to processing other small personal loans from major financial institutions and banks. Step one would be finding a cash advance loan provider. Your office could be offering such facilities to employees or there might be a loan provider in your community.

Fill out the application forms, state the amount of loan and submit the required documents. Usually, for documentation purposes, you would be asked to furnish copies of your employment certificates, residency documents and identification papers.