So a certain aspect of your business requires working capital . Now, what are your business funding options? Well, this question depends entirely on what you need that funding for? Let’s say you want to start up a brand new business. Here your best bet is private equity, friends, and family or bank finance. On the other hand, if you are an existing retail business (older than 12 months) you probably qualify for a Merchant Cash Advance. This is an unsecured funding product that uses card terminals to process repayments. If your company operates outside of the retail sector (say construction or logistics) you could benefit from bank finance, an overdraft, or a secured loan as you will have existing assets, which qualify as collateral.
Not all merchant business funding options are created equal. Some prescribe what the funding should be used for. Others don’t. We fall into the latter half of the equation. We understand that no one knows your business the way you do. So we give you Carte Blanche when it comes to fund allocation. Many merchants use the Cash Advance to buy stock, often in bulk. Qualifying them for a big discount- this saving alone justifies the cost of the funding,
This all depends on the type of funding and associated repayment terms. Equity investors for example, will require a share of ownership in order to invest. Therefore, the value of this share will increase as your business grows. Continuer la lecture de « Do I need assets to get a business loan? »