Starting a business is a big decision. The choices you make along the way significantly affect the success of your business and the livelihood of those who choose to work for you. One of the biggest issues you will come up against will be your cash flow.
In the early years of a business, it is common for a business owner to experience sporadic cash flow droughts. Common or not, it doesn’t make the situation less stressful. When this occurs, business owners find themselves with even more difficult decisions to make in order to prevent their business from having to shut down.
In order to rebound quickly, some business owners turn to cash advances. The problem here is that this can lead to a cycle of renewals that spirals out of control. Before the business owner realizes is it, the cash advance merchant is claiming a large and painful percentage of the business’ revenue.
According to small business advocate and founder of multifunding.com, Ami Kassar, “I see many cases where the entrepreneur realizes the risks of cash advances or short term business loans too late and they’re left repaying with huge percentages of their revenue, plus the expensive fees and interest rates”.
To avoid placing yourself in this overwhelming situation, be sure to step back from the situation and carefully assess all of your options:
- Applying for a cash advance or short term loan should be your last resort. If you feel it is necessary for the situation you are in, make sure that you examine the lenders themselves and the interest rates involved.
- Before accepting a loan or advance, make sure that you know how flexible the payments will be.
- If you have chosen to go with an advance or a loan, calculate the amount of what the daily payment to the lender will be.
First American Merchant Funding is a great online solution to your business funding needs. Their merchant cash advances are based on your business’ performance rather than personal credit, time in business or financials. Their programs are simple and flexible, and you can expect to receive your funds within 72 hours after approval.
First American Merchant Funding’s cash advances are not a short term loan. They are in fact a sale. Simply, they are purchasing your future sales at a discount. In addition, instead of being cornered and told what the terms will be, you will have the opportunity to agree on the amount of sales being purchased along with what discounted cost.
The cash advance you receive will also be revenue based. 1st American Merchant Funding gets paid when you get paid. If you experience a slower month than usual, the flexible structure will keep this from becoming a problem for you. When months are slow, you will pay less. When months are busier you will pay back more. The payments are easy and affordable.
If you are in a tough situation and fear for your business’ future, a merchant cash advance with First American Merchant Funding may be the solution to your troubles.
The application process is simple, fast and hassle free. Apply online today!
