Since the the Great Recession many people tapped into their entrepreneurial spirit and attempted to launch their own small business. As a result, we have seen more than a few great ideas come to fruition, but many potentially great ideas never had the chance because of one hiccup: business funding.

State of Small Business Funding

When an entrepreneur has a great idea for a business, or if they have a small business but lack capital, they need funding options. According to a 2014 report from the United States Small Business Administration (SBA) getting funded is a lot easier said than done. 

According to the SBA report, nearly two-thirds (63 percent) of small businesses looking for funding targeted banks. Their success rate was only 27 percent.

Although some people think that financial institutions hold some sort of bias against small businesses. It's a lot more complicated than that, and many experts cite outmoded financing regulations, the large number of failed startups and bad credit on the part of the entrepreneur. A low credit score can oftentimes be attributed to the recession when numerous households went into massive debt and missed monthly payments.

So you've Attained Funding; Now What?

Attaining funding is one of the biggest hurdles that any small business has to overcome. Let's face it: newly obtained business funding can assist the enterprise in expanding, hiring new staff members, taking advantage of new technologies and incorporating a fresh marketing plan.

Although a business owner is usually ready to celebrate once they receive a business loan, simple business funding mistakes can result in the brand's downfall.

For instance, most banks offer high-interest loans to small businesses. When the interest is sky high then it could deteriorate the company's cash flow and prevent it from actually earning significant profits. It can definitely be a catch-22 for both parties: a small business needs additional funding to expand but in taking a loan it fails, while a bank considers a small business a risky investment but causes it to fail with high interest.

"In many instances, [financial mistakes] are due to poor financial planning on the front end of starting the business," said Marc Price, business author and director of operations at ExpertBusinessAdvice, in an interview with BusinessNewsDaily. "Entrepreneurs underestimate the true costs of launching the business. Subsequently, working through initial growing pains that may transpire after the doors are open can be threatened without proper funding."

Common Business Funding Mistakes

Here are four things that every small business should consider when it comes to business funding:

• Hidden Fees: in addition to interest charges, hidden fees are another consideration to take into account. Origination fees, which are usually between three to four percent, are deducted from the loan and can have a tremendous impact on how much you're paying back.
• Credit Dependent: if you've run through the small business loan then you may turn to credit cards. When entrepreneurs are disorganized and mismanage their finances then they will start burning through their credit cards, which also come with exorbitant interest rates and annual fees.
• Personal & Business Finances: indeed, it is difficult to avoid merging personal and business finances, but it's a common mistake that a lot of business owners make. It should be avoided because then it'll be hard to separate bank accounts, perform accounting tasks and determine what is personal profit and what is business revenue.
• Zero Cash Reserves: finally, maintaining zero cash reserves is the bane to any business's existence. Not having enough cash on the side for an emergency will cause the company to miss quarterly profits and diminish revenues. 

A Business Cash Advance

One alternative business funding option is to utilize a business cash advance, a short-term funding option for enterprises that need to cover expenses, emergencies and expansion plans. A business cash advance gives business owners a reasonable remedy to the common and immense interest payments and hidden fees associated with traditional business loans from banks and lines of credit.

Merchant cash advances provide simple and easy-to-understand payback terms, and it won't cause the business to reduce their profit margins. It typically works like this: you and the financial services firm agree on a set amount and this sum is paid back through a certain percentage of all credit and debit card transactions.

It can't get any simpler than that. There's no tiny fine print, hidden fees, unscrupulous behaviors and exorbitant costs. It's a rudimentary cash advance that can help your small business grow or stay alive as you weather the market storm.