Everyone knows that you have to spend money to make money. However, when your company is on a tight budget it is a lot easier said than done. Oftentimes a limited budget for your business can diminish your entrepreneurial opportunities and reduce your competitive advantages. 

In addition to being cost-conscious, today's generation of consumers is a lot savvier than they used to be. From online customer reviews to keeping up a good social media reputation, there are a lot of factors small businesses have to take into account when owning and operating a brand. You have to keep in mind that your customers are smart and tend to spend their money wisely.

Along with brand credibility, consumers in this economy are more likely to shop with merchants that take that extra step in delivering high-quality products, maintaining competitive prices and providing an amazing customer experience. 

Small businesses have to keep up with their larger competitors, and this consists of investing money into the company, whether it's a new marketing campaign, website development, several payment solutions or hiring new staff members. When a business needs funding, conventional lending institutions aren't always the best option. 

Traditional financial institutions may not approve loan applications, banks may not wish to extend lines of credits and lenders may have a strenuous application process. More importantly than that, the interest rate may be too excessive for the company - debt payments can prove to be a hindrance to the growth of any small business. 

Due to many of these difficulties small businesses face, a wide variety of alternative lenders have popped up: peer-to-peer lenders, amateur venture capitalists, credit unions, Community Development Financial Institutions (CDFIs) and merchant cash advance providers. 

In recent years, one of the most popular business funding alternative solutions is a merchant cash advance. A merchant account cash advance is simple, easy and affordable. What is it? Well, a merchant cash advance firm offers businesses a lump sum payment in exchange for a future share of the company's debit and credit card transactions. 

When funds are tight and short-term expenses are growing, small business owners take advantage of this alternative funding tool. It's growing in popularity as it currently controls 10 percent of the market that is pegged to be soon worth as much as $15 billion. 

Unsure what to think of merchant cash advances? Here are four reasons why merchant cash advances are ideal for small businesses: 

Short-Term Pain, Long-Term Gain

 
Business owners may suffer from a low credit rating. A private firm may need to borrow a large or small sum of money for a short period of time, say three to 10 months. In either case, a conventional financial institution cannot help the entrepreneur. A merchant cash advance can range in between $5,000 and $250,000 and gives the business owner greater flexibility in repayment. 

Business is Slow

 
In this economy, business can soar and then business can decline. It's the nature of this post-recession marketplace. A merchant cash advance is designed to accommodate the rollercoaster ride of sales. A merchant account cash advance provider structures a fixed percentage of a business's daily sales and the payment increments rise and fall with its sales. 

Your Business Plan is Your Business

 
A traditional business funding lender will want to understand the most intimate details of your business model. Sometimes, a credit lender will determine that the business is too risky to invest in. However, a merchant cash advance provider is a lot more flexible about who they do business with and how the funds will be used. If a business plan is unconventional a merchant cash advance firm will try to understand it even if it is out of the ordinary. 

Quick & Easy

 
As previously noted, the application process presented by banks can be long, complicated and tedious. After going through this entire endeavor, a small business may not even be approved for a loan. Simply put: it's a slow and difficult process. Meanwhile, merchant cash advances offer high approval rates, an easy application and collections process and fast access to the sum of money. 

A financial services firm like Quikstone Capital Solutions can furnish you with all of the details regarding a merchant cash advance. Learn more by checking it out today.