Financing Your Business Using an SBA Business Loan
As a small business proprietor, I know the importance of having enough funding. In the past, it was fairly direct to receive a sba business loan. These conventional loans required a sound business plan, weeks designated to the approval process, and patience. There is no guarantee that you will be awarded this loan, and it will take weeks for your business to get the funds. This can be extremely unsatisfying for you as a business owner because you apply for this loan hoping to receive monetary resources quickly for your ailing business. Over the past year, I have looked into multiple ways to fund my business. I knew that the recession was going to handicap my sales, so I needed to determine a way to secure the funds so I could keep my business afloat. After failing to secure a traditional loan from a local bank, I looked into another form of funding.
One of the new chances I found was a merchant advance. I did not have any experience with this method of funding so I did some exploring. This was not a source for start ups, which my business was not, so this was a non issue. I needed to have approximately three thousand to five thousand dollars in monthly credit card sales to qualify. Luckily, a bulk of my customers used credit cards and I easily met this demand. In my opinion, the best part of the merchant advance was the lack of restriction on the use of funds. I was not required to use these funds in any special way. I did not have to determine to the lender what I was going to use these funds for.
Another vantage to this method was the repayment plan. In essence, there was none. The lender would set up a deal with my credit card vendor to automatically subtract a percentage of my credit card batch. This would go towards repaying my loan amount. This was convenient because it would free me from keeping track of the repayment and eliminated the need for interest charges or penalties on late payments. I recommend this to any small business owner looking for some extra funds.