CORAL SPRINGS, Fla. (SEND2PRESS NEWSWIRE) — With forecasters predicting another tight credit market in 2010, business owners are learning the new realities of small business financing. They will pursue every option they can, even methods they wouldn’t have considered a few years ago, says BusinessCashAdvance.
While small businesses have relied on credit cards as an option to extend credit, that source is closing quickly as credit card companies reduce limits and put the squeeze on small business owners. In the first half of 2009, 38% of small businesses saw a decrease in their credit card limits, according to the National Small Business Association. The SBA has also just announced that stimulus funding for small business loans is running out again.
Companies have turned to alternatives like lines of credit, factoring and reverse leasing, but an increasing amount of merchants are utilizing business cash advances.
Business cash advances provide unsecured financing to businesses such as restaurants, automotive repair shops, salons, florists and others. These businesses use future credit card receipts as a form of collateral and receive funding to buy equipment, make repairs, pay taxes, keep payroll current, or anything else they choose.
“With the money, we were able to re-structure the salon to allow more employees to work and that is helping to grow our business,” said a salon owner in Maryland. A restaurant in California used the advance to pay for overdue remodeling, a retail store in Arkansas increased inventory to boost sales, and an automotive garage in Maryland bought equipment to keep up with state requirements.
Cash advances can be advantageous, as they don’t require collateral or good credit. Repayment is based on sales and no long applications are required. Companies that process at least $5,000 in Visa or MasterCard sales a month qualify for this type of small business financing.
Founded by financial professionals, BusinessCashAdvance.com provides unsecured cash advances for small business. Financing companies in a broad spectrum of industries, it has helped retail stores, automotive shops, beauty salons, medical practices, florists, pet stores, restaurants, and others.
A free application is available online at www.businesscashadvance.com or by calling 866-411-0606.