Don’t Let the Credit Crunch Crush Your Business
In the midst of a credit crunch, big banks say they are still willing to provide small business loans, but only to those whom they feel are capable of repayment. Obviously, one of the major factors that banks use to determine whether an applicant is capable of loan repayment is credit score, leaving businesses whose owners’ credit scores are not excellent, out in the cold.
But now, it isn’t just struggling businesses that are being hit. Strong, healthy businesses are also feeling the sting. In a Business Week article, attorney John Rieser states, “In Ohio, banks are refusing to renew lines of credit and calling in loans made to decades-old family businesses that are current on payments…”
Whether the credit crunch has turned getting a business loan into a mere dream for you, or you’ve lost the readily available funds that your bank once offered, a business cash advance can hold you over during your time of need.
Business cash advance lenders don’t rely on the borrower for loan repayment. That is why an excellent credit score and collateral are not necessary for approval. The business its self, is responsible for the loan repayment. When customers make credit card purchases, a percentage of those sales actually pays for your business cash advance.
In addition to being very convenient for the business owner, this type of repayment system is motivational, creating even more of an incentive for making sales. Because of this, you may increase customer service, develop better relationships with your customers, and in turn notice an increase in sales, as your business cash advance is paid off in no time. Accordingly, if business is slow for any reason at all, your business cash advance payments will follow.
Unlike banks that are refusing to renew lines of credit for borrowers that have maintained long business relationships with them, business cash advance lenders allow merchants to renew their accounts once a certain percentage of their previous advance has been paid. Most lenders will allow merchants to renew as many times as they choose. This is because lenders want to keep their customers for as long as possible. A business owner whose business consistently supports their advance repayments is a business owner that lenders want to maintain a healthy relationship with.
According to Sterling National Bank president, John Milken’s statement in the Business Week article, the unwillingness and inability of larger banks to provide funds to small businesses gives smaller regional banks an opportunity to lend more to small businesses. Still the article goes on to report, “The community banks in aggregate don’t have the resources to carry the economy by themselves,” says Milken.
Choosing a business cash advance may not just be the best option, it could also be one of the only options that many small businesses have for small business financing during this time. Take advantage of the opportunity.
David Castro often writes articles about Business Cash Advance for Merchant Resources International - To Learn more Visit Us at http://www.businesscashadvanceloan.com