subject: Small Business Loans - Do They Still Exist? [print this page] The times of easy credit are going, going, going Gone! Also, small business loans may just as well have gone the road of the Tooth Fairy. Possibly, some thousands of years in history there was some basis in fact for such an altruistic, albeit slightly unsavory benefactor as a Tooth Fairy.
The fact of today, still, is that cash has to come from some place, which most often happens to be from Mom's and Dad's savings. Even with entities such as the Small Business Administration (SBA) looking at loan applications, banks often don't have the financial strength, or the willingness, to take part in the SBA and other similar programs.
This leaves merchants with fewer choices for avenues of financing for growth, or for short-term cash-flow issues. Still, even if any property owned by you or your business already has liens against it, there is a way you can obtain the funding you need without the requirement for collateral, or the necessity to tie up any more credit, even if you can get it.
If you process a sufficient stream of Visa-MasterCard receipts, you can actually sell a portion of your future receivables in order to obtain a lump sum of financing immediately. 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 rate, a portion of your future revenues, you can obtain your working capital within a couple of working days. Then, during the normal course of running your business you pay back the advance, in addition to a predetermined fee, without having to deal with a set monthly repayment schedule.
Business cash advances are not entirely like small business loans, but they are not similar to that creepy old Tooth Fairy either, and a whole lot more realistic.
by: Daniel Samoohi.
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