The average small business has about 27 days worth of cash reserves at any given time. Unfortunately, the truth is that most have much less. That means that it would not take much for a business to fail, simply because they lack the buffer they need to deal with unforeseeable circumstances. Online business loans, particularly the merchant cash advance, may be the solution for a handful of small businesses.
Though it is easier to get a merchant cash advance now more than ever, these online business loans should not be used a crutch. Fast and Easy Funds aims to provide a brief loan based business plan so that small business owners can utilize the funds they receive in the best way possible.
Why a Merchant Cash Advance?
There are a lot of online business loans available, so why choose the merchant cash advance over an easy term loan, or even a personal loan?
- Merchant cash advances do not require collateral.
- It is much easier for a business owner to secure a merchant cash advance, and they are awarded quickly. They are perfect for owners who need an online business loan now.
- There is no fixed payment date and a small percentage of all credit card sales, up to an agreed upon amount, is used to pay the online lender.
Find the Right Online Lender
Before you begin your loan-based business plan, be sure to find the best merchant cash advance provider that you can. Find a trusted lender that can provide you with an online business loan at the most competitive rate.
Ever Dollar Has a Mission
Create a financial mission statement. This is a mix between a typical mission statement that outlines goals and a financial statement that outlines all the business finances. As the name suggests, combine the goals and finances to create a statement that illustrates the direction of the company and how the money will be spent. Be as specific as possible and factor in the merchant cash advance and any other small business loans.
Part of giving every dollar a mission, so it is important to monitor all expenses. Small business owners who have never received an online business loan may fall into the trap of spending too much too soon. Remember to keep a cushion and monitor all expenses.
Is It Worth It?
There is no need to take a merchant cash advance unless the funds are needed and spent wisely. Finding an online lender and creating a financial mission statement should ensure that you are carefully thinking though the decision to get an online business loan.