If you were to randomly stop and ask 100 small business owners what their number one problem is, they would likely say cash flow.  It takes significant financial investment to turn your great business idea into a reality and you need subsequent investments to keep your business afloat.  What do you do when your funds run short?  Have you been to a traditional bank and gotten turned away? What about the huge checklist that the bank needs you to fulfill to determine your “credit worthiness?” Their business loan checklist may include your personal background, resume, business plan, personal credit report, business credit report, income tax returns, financial statements, bank statements, and collateral. 

Alternative business funding does exist in the form of a merchant cash advance.  The process allows for fast funding to business owners freeing them up to invest in revenue building activities.  A merchant cash advance works by agreeing to repay the lender a percentage of future income. Unlike, traditional loans, businesses would not be responsible for making regular, fixed payments. Instead, the lender collects a set percentage of the company's daily credit card or debit card sales. Merchant cash advance companies fund several billion dollars per year to small business owners.

Businesses such as restaurants, bars, beauty salons, auto repair shops, liquor stores, catering companies and retail stores often face a similar challenge. They tend to be family owned or standalone companies who do not have the major financial resources of competing franchises.  Many customers choose to frequent these places of business just for that fact alone but what happens when these loyal clients just aren’t enough?  The economy is coming out of a recession and that means that sales have probably been slow for a while.  What if you would like to remodel and revamp the place to attract a new clientele?  Maybe it’s something as simple as having new menus designed or needing to replace your old dishwasher? If your business is experiencing a cash flow problem, it’s important to take steps that will either increase cash flow or decrease overhead costs (or preferably both). 

You need a plan to obtain working capital for your small business. Most small business budgets are extremely strained.  You may be tempted to cut back in spending in areas like advertising. Advertising is important and now is the time to increase it.  You have all sorts of free or inexpensive advertising mediums at your disposal such as Facebook and Twitter.  However, you may also find it important to stick to the tried and true methods of advertising such as purchasing ad space and paying for a custom marketing strategy.  These choices are not inexpensive but typically are necessary to see growth in your bottom line.   If your business could use a cash infusion, take comfort that a merchant cash advance can be your key solution to an increase in sales and profit.