subject: Business Loans - Do They Actually Still Exist? [print this page] The times of simple credit are going, going, going Gone! Also, business loans may just as well have went the path of the Tooth Fairy. Perhaps, some thousands of years back there was some basis in fact for such a friendly, albeit slightly unsavory benefactor as a Tooth Fairy.
The reality of current times, however, is that funding has to come from some place, which most often happens to be from Mom's and Dad's bank account. Even with entities such as the Small Business Administration (SBA) underwriting loan applications, lending institutions often don't have the financial power, or the desire, to take part in the SBA and other similar programs.
This leaves merchants with fewer options for sources of procuring funds for growing the business, or for short-term cash-flow problems. Nevertheless, even if any property owned by you or your business already has liens against it, there is a method with which you can attain the working capital you need without the requirement for collateral, or the requirement to use any more credit, even if you can get it.
If you process a sufficient stream of Visa-MasterCard sales, you can actually sell a percentage of your future receipts in order to receive a lump sum of financing now. It is called a business cash advance, and since it is not a loan, but an advance on cash that your business brings in every day, you do not need to go with hat in hand to a traditional lender.
Once a merchant cash advance agent agrees to purchase, at a lower price, a piece of your future revenues, you can receive your financing within a couple of business days. Then, during the normal course of working your business you pay back the advance, in addition to a set fee, without having to be bound to a set monthly payment schedule.
Business cash advances are not entirely the same as business loans, but they are not like that unsavory old Tooth Fairy either, and way more realistic.
by: Daniel Samoohi.
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