Financing for Business Owners: Consider Merchant Cash Advance


Are you in need of business capital? Do you think the process of finding it is intimidating? Well, this article will help you know what options are available and which ones are right for your own specific business wants and needs.

Financing for Business Owners: Merchant Cash Advance & More

Here’re a number of business financing options that can help you sidestep obstacles on your way towards growth:

  • Angel Investors

Be aware that outside investors may require some equity in your business. Many prefer angel investors because of the benefits they get in return.

  • Bank Loans

Bank loans are the best choice for those with a sound track record and excellent credit. Your good ideas should be backed up with a well-thought business plan. Also, you’ll be required to provide a personal guarantee.

  • Bootstrapping

Bootstrapping can create some challenges for you. The thing is that you should ensure that your own well doesn’t run dry.

  • Business Credit Cards

You’ll get approved mainly based on your personal credit score. Some business credit cards offer extra benefits as well. These can be good both for startups and well-established businesses.

  • Business Incubators

Business incubators or the so-called “accelerators” generally focus on the high-technology industry. They offer support for new businesses in various stages of development.

  • Crowdfunding

This can be great for those trying to get a great idea off the ground. You may have heard about crowdfunding platforms such as Kickstarter and Indiegogo where you can get funding for your business.

  • Factoring

This is another method to get financing for your business. In this case, a company sells its receivables at a discount with the purpose of getting cash up-front. If your credit isn’t good or you’re an apparel manufacturer, this can be good for you.

  • Merchant Cash Advance or MCA

An MCA is currently one of the most popular types of funding for small businesses. By the way, an MCA isn’t a short-term loan: it’s simply a sale. A merchant cash advance provider is buying your future sales at a discount.

Though MCAs usually come with higher rates, working a reputable alternative online lender, you can enjoy the lowest rates in the industry. MCAs are ideal for those who need quick access to working capital.

  • SBA Loans

Businesses that prefer SBA loans and can get approved for them can receive benefits such as lower interest rates, longer repayment terms, and a low down payment.

  • Startup Contests

Businesses with solid potential can enter into a startup contest. You can find several of these contests available all around the globe. They provide equity-free investments to winners.

  • Venture Capital

Venture capitalists will take an equity position in your company to help you with a promising but risky project. Venture capitalists prefer tech-driven businesses and companies with high-growth potential. They usually choose information technology, communications, and biotechnology sectors.

As you see, there’re more one options to get the appropriate financing to meet your specific needs. Just take the time to find out what type of financing is right for your business.

Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business funding (merchant cash advance) solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.