subject: Locating Merchant Capital; The Positive, The Negative, And The Hideous [print this page] Inevitably in the life of a business, there are times when there is a strong need for some unexpected capital. Merchant capital can come from a variety of sources, but they are definitely not all of equal value. Understanding the differences between these sources allows you, the business owner, to make the best choice to meet your needs.
The Hideous - Friends and Family Members
When you need money for your business and you need it fast, many people turn to friends and family. If you value these relationships, I would strongly advise against it. Although you may think the chances are extremely slim, any business faces the threat of going under, therefore not allowing you to return the money borrowed.
When borrowing money from friends and family they could feel that they have the right to tell you about your business and how best to run it. Do not mix your personal life with your business life, it only causes additional stress.
The Negative - Conventional Banks
With today's financial turmoil there are many negative things about conventional lending. The issue is their complex application process, dragged out turnaround time, and strict guidelines. Assuming you have stellar credit, collateral, a specific purpose for the loan, and don't require flexibility when paying it back, then a bank loan may be a good option for you.
Alternatively, if you need money fast, want to increase your chance for approval, don't have time for financial statements or business plan, and you do not have anything to pledge as collateral, then don't think about a bank loan - they will not approve you under these terms.
The Good - Merchant Capital Advances
Before you think there is no hope, consider a merchant capital loan as it will offer you a sizable advance with reasonable parameters. The majority of businesses accept credit cards as a form of payment. If you currently process more than $4,000 per month, you are pre-qualified for an advance and can obtain funds in as little as 7 days.
With merchant capital advances the application process is fast, easy, and secure; providing you with the freedom and capital your business needs to grow.
