The alternative funding industry changes rapidly and it can be tough for small business owners to keep up with the times and choose their best option. Since small businesses need the ability to pivot at a moment’s notice owners have been opting for faster funding solutions. Here we’ve outlined some of financial trends that are affecting small business owners and where to look for financing.
Online Lending Is Growing
More small business owners are starting to realize the advantages that a merchant cash advance has over traditional bank loans. Some of these include an easier more streamlined application process, faster access to your funds and a payback system based on a percentage of daily credit card sales. With their rising popularity, more lenders have started to appear on the market.
Traditional Loans Lack Versatility
Traditional loans require you to detail exactly what it is you will be spending the money on, a merchant cash advance allows the flexibility to use your cash in any form you deem necessary. MCA lenders realize that in most cases a business owner knows what they need and are financially responsible enough to distribute their funds. The time it takes to be approved and start using your advance is also much shorter than a traditional loan. In most cases you can receive your money within a week. This eliminates costly down time or fees that you may incur for a past due expense. When it comes to repaying your loan, it’s as easy as can be. The repayment period is typically less than a year. This helps you to better align your budget and not have to worry about your repayment fees cutting into your bottom line.
Crowdfunding Not Always Worth The Wait
You don't have to work very hard to find stories about people raising large amounts of money through crowdfunding. Business owners without many hours to devote to crowdfunding efforts, a talent for marketing, and the ability to wait months for funding may not find crowdfunding to be a good option for them. Additionally, many people are unwilling to contribute to crowdfunding unless they get something in return, which may not be realistic for many businesses or may cut into profits too much.
Customers Are Doing Their Research
There are many things to consider when choosing a lender. Working with a company that deals with your specific industry is in your best interest. If a lender has experience working with other companies in your field, they will be able to provide you with advice and consultation that can help you to spend your money wisely. Any trustworthy company is going to be up-front and transparent with you about their terms and conditions. If a lender is hesitant to provide you with documentation detailing costs and all of the specifics about your transaction that should be a big red flag. Don’t let a significant need for funding persuade you into signing on for a bad deal. Make sure you have a clear understanding of exactly what you’re getting into and work with a lender that is willing to explain everything to you without applying pressure to commit.
Owners Want Their Money Fast
Merchant cash advances can sometimes garner a bad reputation but much of it is due to an issue that exists in every industry, some companies lack organization, experience and transparency. The reality of it is, a merchant cash advance offers fast funding to businesses looking to grow with relative ease compared to a traditional bank loan. The advantages of a merchant cash advance are numerous, almost as numerous as the different ways they can be used. When used correctly, they can take a growing, or even a struggling business to new heights. There are many success stories out there that show the difference a simple cash advance can make. Before listening to the critics, it’s important to do your research.
How Quikstone Capital Solutions Can Help
Quikstone Capital Solutions has been providing small business owners with merchant cash advances to stabilize and improve their companies for more than 10 years. If you are in need of a cash to cover unexpected costs, or if you’re looking to make long overdue improvements, a merchant cash advance could be right for you. With the ability to quickly qualify and get your money in a timely fashion, there is no more convenient option.
