Business owners are struggling to find viable sources of business funding right now. Even those businesses and individuals who were previously considered “easily bankable”, are having a hard time with the banks, who seem to be looking for reasons to poke holes in deals rather than trying to fund them. What kind of options are available to these types of businesses? One popular alternative, the merchant cash advance program, are often considered by the “bankable” merchants to be too expensive, and too short-term.

New Business Funding Alternatives

Even if you have looked into a credit card processing loan in the past and turned down the offer because of cost, you should look into this option again. You would be surprised by the number of new programs available as a result of merchant cash advance providers trying to tap into a new market, or a new kind of merchant. Merchant cash advance providers used to rely solely on the sub-prime market, or if not sub-prime, at least the people who normally couldn’t qualify for money from a bank. I think many of these MCA companies are realizing that it’s harder to make money on these types of deals because of the increased risk. They are trying harder than ever to offer competitive business funding programs to the cream of the crop deals. What they’re doing as a result is coming up with “premium programs”, that is, cash advances that are significantly reduced in cost and stretched over 9 – 24 months, something that is much more palatable than the traditional 6 month terms that they offer most clients.

Give it Another Shot

Especially if things have changed in your business or your personal credit, you should definitely consider looking into these types of programs again. Like I said, so much has changed that you will actually be surprised about what kinds of deals you may be able to get for yourself. Even if things haven’t changed very much, look into it. It doesn’t hurt to get a quote. I can think of more than a couple of deals that we’ve done that were doing the merchant cash advance program for years and years, before premium programs were available. Some of these businesses would easily qualify for better terms today, but some of them have since stopped relying on this type of funding.