Business Funding Alternatives for Small Businesses

Small businesses are thriving despite the difficulties and challenges of the times.  This is because more and more financial institutions recognize the needs of small business owners and the sector’s importance in Australian economy.  Business funding requirements for small businesses are different from big corporations, not to mention there is a difference in business structure as well.  This is why traditional bank loans do not usually work for small businesses.

But because small businesses make up 95 per cent of existing and actively trading businesses in Australia, they have business funding needs that must be met.   And unlike big corporations, small businesses are much more dynamic and they engage in innovation activities more often than big companies.  Small businesses need business funding in smaller amounts but shorter term periods.

The survival rate of small businesses is lower but access to business funding has direct correlation to it.  The fact that most small business does not meet most bank requirements for business loans stifles their potential for growth and inhibits their innovation activities.  The need for better business funding facilities has been met recently more particularly through the business cash advance funding also known as merchant cash advance.

Merchant cash advance is a business funding facility that is easily accessible because the requirements do not include collateral, financial statements or business plans.  At a 95% per cent approval rate, small businesses have better chances to break barriers that hinder their growth and to meet their business’s full potential.

                This newest funding facility is the easiest to access and repayments are also easy on the pocket.  Payment is in the form of a pledged percentage of daily credit/debit card sales.  There is no pressure to come up with a fixed payment amount and there are no due dates to worry about.  Payment term may be from 3 months to 18 months.

                The merchant cash advance facility is the easiest to access and the easiest to repay, but it is not the only business funding resource that is available.  There are government grants, peer to peer funding and angel investment networks that may be tapped.  However, these funding resources are not easy to access as it needs quite a lot of planning and preparation to impress investors and there is a huge amount of competition for a small pool of funds.

                So, if you are thinking of putting up a new branch, or developing a new product or purchasing inventory or new equipment, do call a business cash advance provider and make inquiries.