Getting a small business cash advance, also known as a merchant advance for small businesses, can be an expensive proposition. You will be selling a portion of your future credit card sales at a discount. The discount is typically in the range of 10%, with repayment expected within ninety days to six months. We’ll be discussing some alternative funding sources, in today’s article.
Family and friends: Many new business owners skip right past this one. This is because they do not want to inconvenience their personal acquaintances. Remember, your business is an important part of who you are, and they probably want to see you succeed. If you don’t feel comfortable borrowing from personal friends, that’s fine. Just remember they’ll charge less interest than a small business cash advance.
Personal savings: This can be a dangerous source of funding, if not used appropriately. The conventional wisdom is to never use your personal money for business expenses. The reason is twofold—First, you blur the line between your personal finances and your company. If your company were to go bankrupt with outstanding obligations, you’d run the risk of your creditors coming after your personal assets. The other reason is that, even if your business fails, you can always try again. This is as long as you don’t destroy your personal finances.
You can also use your existing lines of credit, or business credit cards, to pay for emergencies instead of a small business cash advance. However, if you have a true emergency and don’t have any of these other sources readily available, an advance is often a reasonable option.
For more information, go to Small Business Cash Advance at http://www.unsecuredbizloan.com/small-business-cash-advance/