That is a very good question. How do you finance your small business? How small is your business? Do you dare go to a bank and try for a traditional loan? Well…. You can try. If you have immaculate credit and it screams good risk, you are likely to get that loan. But if you are under 700 in the credit score, forget about it!
Here are some other options to look at:
• You can try a pay day loan, but you may go broke trying to pay it back.
• Of course, there is a loan on your house. Do you really want to risk your home if the business fails? NO!
• You can try a loan shark. Do you like your legs? They are quick to loan and quick to ask for it back. Better hide the family too.
• How about a cash advance on your merchant account? What? You don’t know what I am talking about….. Well, let’s get you some information.
Loans for small businesses
When the market crashed and banks decided that the very people they were bailed out by should not be getting help, the merchant account servicers heard the cry. They put together packages to help anyone in need. All you need is a merchant account to make payments.
It’s really rather easy
Depending on the business you have, you adjust the kind of account you process credit and debit cards through. With that, you ask for a cash advance or loan. They will help you out up to $250,000. So let’s say you borrow $5,000 and you agree to the terms of 5% interest.
How it works
The Merchant account servicer has bought your credit and debit purchases at a reduced rate. Every day that you get paid with the cards, that five percent is taken out of the daily totals. If you have a bad day, they have a bad day. So, if you have $500 in sales that day and it was on the cards, your total payment for the day is $25.00. In the grand scheme of things, that’s not bad.
You will have the loan paid off in 200 days, or 6 months. Some merchant account servicers will do a traditional pay back program. You just have to ask to find out the best options and what programs they use.
For every good guy
Just like anything, for every good business is one that is a fraud. So, when you go about this, take the time to insure they REALLY are a business. Be sure they are one of the good guys. Check for online forums and their names. See what people are saying about them. Do several places; don’t give up. The right one is out there for you. It’s no different than trying to find the right boots. You have to keep looking to get them to fit correctly.
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