According to recent surveys, bank lending is still low, as the Wall Street Journal recently reported that, “Leading U. S. banks are slowing lending as bankers and borrowers refrain from taking risks in the uncertain economy. ”
For some, this may seem like an adversity, but many innovative small business owners are taking matters into their own hands and using these times as an opportunity to discover other effective methods of business financing, such as merchant funding.
In the past, merchant cash advances were typically used by small business owners whose low credit scores, lack of collateral and short business histories, rendered them ineligible for bank loans. But the recession has made it difficult for many merchants to get funds through banks – merchants, who under normal circumstances, would qualify for bank loans.
Now, more and more small business owners are learning that merchant cash advances can be a great help to their businesses. They are using them to expand their businesses, to renovate, to purchase additional advertising and even to redecorate; and they are able to do this because there are no restrictions on how business owners can use merchant cash advances.
Providers can advance up to $500, 000 in business funds to qualified business owners. Qualified business owners are those who:
1. Have owned their businesses for at least six months
2. Own businesses that process at least $3, 500 in monthly credit card sales
3. Have no unresolved bankruptcies
4. Have at least one year remaining on the business lease
Some experts predict that the merchant cash advance will be used widely, even when the economy picks up again, others believe the usage merchant funding will decrease. Regardless of what the future holds, if you own a small business and have found it difficult to get business funds through a bank, it may be in your best interest to get a free online merchant funding quote today!