Do You Need a Business Loan Fast? You May Need to Rethink Your Business Loan Strategy

I’m going to illustrate a couple of business scenarios and I want you to ask yourself if this has ever happened to you;

I am a small business owner who sells clothing at a small storefront. My inventory isn’t selling as well as I had thought and I am stuck with several racks full of clothing that is quickly going out of fashion. I decide to mark down my inventory, which cuts heavily into my profit margin. Because of my small profit margin, I cannot afford the marketing that is necessary to increase my sales. As this cycle continues; it becomes more and more difficult to purchase new inventory which in turn would increase my sales.

Or maybe this one;

I am an owner of a pizza restaurant. I purchased the restaurant 8 months ago using my life savings and a small business loan. Suddenly my pizza oven begins to malfunction. It is an old model that is pretty inefficient, but when it works; it works fine. I call a repair guy to come out and take a look at it. He informs me that if I don’t replace a major component, the oven will fail. He tells me that because of the age of my oven, the part is difficult to find and very expensive.

He gives me an estimate of $6,000.00 to fix the oven. A brand new, more efficient oven costs $8,000.00. Should I get a new oven or fix the old one? The real problem is that I simply do not have the money to do either.

Can you guess what one thing would help solve both of these problems? If you guessed money, you would be absolutely correct. But what if there are certain circumstances in the way that make getting cash from a business loan difficult if not impossible? A business loan can weeks, if not months. What if you can’t wait that long? What if you had credit issues in the past which brought down your FICO score and now the banks won’t touch you?

Of course these are hypothetical situations; but you do not need to own a dress shop or a pizza kitchen to understand the dilemma that these two businesses face. Maybe you are facing a set of completely different circumstances. Could a sudden influx of working capital help you too?

I’m sure you’ve heard the expression "It takes money to make money". No truer words were ever spoken. It is also a conundrum than so many businesses face every single day. How can we break out of this seemingly impossible situation?

One solution would be a business loan from the bank. Depending on the circumstances, this would be the first thing I would try. But what if my credit got damaged as a result of my problems? What if I can’t wait several weeks for my business loan go through?

Another solution is one that is often overlooked; it is the merchant cash advance. A merchant cash advance is business loan alternative that is much easier to obtain and is a much faster process than a traditional loan from the bank. What takes several weeks for a bank often takes less than 1 week for the merchant advance.

The main difference between a business loan and a merchant cash advance is the process in which the money is paid back; a business loan takes the amount of money you borrowed, adds the interest and divides that number over the length of the loan. This creates a fixed loan amount that you pay each month until the debt is paid.

A merchant advance purchases a portion of your future credit card sales at a discounted rate and you use a percentage of your daily credit card sales to pay it back. By using a percentage of your credit card sales, this creates a flexible payback schedule that changes based on your daily sales. If sales are slow that day; your payback is less.

However your business is doing; we could all use extra working capital to create more opportunities or to make things better. You owe it to yourself to look at all of your options before making a major decision like a business loan.

Learn More About a Merchant Cash Advance
The Business Loan Alternative