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business loan Blog Posts

By First American Merchant

Feel free to give us a call for more info 1-800-210-5649

Why Was I Denied A Small Business Loan?

Receiving a rejection letter for a business loan you were counting on can be discouraging. Data from the Small Business Administration (SBA) reveals that nearly 50% of small business loan applications are rejected for a variety of reasons. Understanding the most common reasons banks decline loan applications can be useful for your own business endeavors. 1. You applied for the wrong loan product Some banks may specialize in a certain type of lending or industry. For example, a lender may choose to fund large corporations that reach a certain revenue threshold or carry a specific number of assets. Other banks […]

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Get A Business Loan With Bad Credit

So, a business cash advance is something that most every merchant needs at one time or another.  But, what happens when you have bad credit? Well, for some merchant account providers this means that you are no-go when it comes to getting a business cash advance. You need to look for one option, and that option lies with FAM. A merchant cash advance is not a short term loan or a high interest advance. It is a simple sale. Merchant cash advances purchase your future sales at a discount. Both parties agree to the amount of sales being purchased and […]

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Working Capital is Important To Business

What is working capital? And why should it matter to your business? Working capital is the funds your business has available to cover day-to-day expenses. Without it, your business could quickly find itself in a dangerous cash-flow situation. Or, worse case scenario, facing bankruptcy. It’s also important to keep an eye on working capital because it’s what investors consider when assessing your business’ financial health and liquidity; that is, how easily your business’ assets can be sold to generate cash on hand. Working capital can be found through the following, simple formula: Working capital = current assets – current liabilities […]

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How a Merchant Cash Advance Can Boost Your Business Esteem

So, you are a small business owner. You have committed your whole life in propelling your business forward. But as you might have noticed that it has become increasingly difficult to attain capital to grow your business in this day and age. Banks are becoming tyrants instead of actually helping businesses, they always seem to have a problem with everything. They will make you sign a dozen documents, put many restrictions on the use of the money you will get from them, and even after you are done with all the formalities, you still have to wait a while before […]

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How to Build Good Business Credit with Bad Personal Credit

As of 2016, there were 28.8 million small businesses, which represented 99.7% of US businesses, according to the SBA. As of 2017, big banks only approved nearly 24.1% of small business loans. Smaller banks approved around 48.9%. Alternative lenders approved 58.2% of loan requests, according to Biz2Credit To get approved for any type of small business loan, lenders will want to see your ability to pay back the funding. So, you’ll be required to provide some information, including credit history. If you have bad credit, you’re likely to get a refusal from the majority of lenders. The thing is that […]

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Three Ways Your Business Can Benefit From The Off-Season

Regardless of whether or not your business is seasonal, there comes a time in the year when sales are lower than normal. For brick-and-mortar retail stores, this period is typically the summer, when a significant number of customers is out vacationing out of town. On the other hand, hotel owners feel the cold more than the rest of us during the winter. If the health of your business is more or less tied to seasonality, then you probably already spend a portion of the year weighing your options for the off-season. With proper planning, time management, and financial oversight, the […]

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Tips To Applying For a Merchant Cash Advance Loan… Even With Bad Credit

Although merchant cash advances have facilitated the prosperity of many businesses, some haven’t been as lucky. Like all funding options that need repaying, a MCA can make or break your enterprise. For instance, if your retail business is in need of immediate cash flow, a small business loan could help you get back on your feet. It’s quite easy, if you’re short of funds and your enterprise is making consistent monthly sales, applying for a merchant cash advance could add even more help alleviate the strain to your financial situation. A MCA is not a loan, but an advance on […]

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6 Possible Reasons Why Your Small Business Loan Application Was Rejected

There are many situations that call for a business owner to look elsewhere for business funding. Financing startup costs, fueling growth, funding expansion and covering operating costs, to name a few. When a business finds itself in a tight situation, the first place the owner typically turns is their bank. However, the task of securing a small business loan can be a very long, drawn-out process. Applying for a bank loan requires extensive documentation and long wait times for funding. To make matters worse, many of the businesses turned down for financing have no idea why their application was rejected. […]

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How To Make a Merchant Cash Advance Work To Your Advantage

Merchant cash advances are among the most popular methods of raising quick capital for business. By definition, an advance is an immediate financial advancement, which is given to a merchant in exchange for a share of future credit and debit card receivables. A MCA shares a few similarities to a loan, most importantly the aspect of paying back the money borrowed by the end of a stipulated time. However, it’s often a great alternative to a bank loan because it allows for much needed financial flexibility, provides immediate funding, and is quickly processed. Nevertheless, MCAs still need repaying. Before applying […]

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What You Should Know About a Working Capital Loan

A working capital loan can be defined as a type of loan that aims to finance your company’s everyday operations. It’s not meant for purchasing long-term assets or investments. A working capital is designed for covering accounts payable, wages, and more. Working Capital Loans Usually, a working capital loan is the right option for those businesses that feature cyclical sales or have high seasonality. A working capital loan can be of great help during periods with reduced business activity. You should consider applying for a working capital loan if you need financing to cover your company’s short-term operational costs. It […]

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