Small business owners have been complaining about how challenging it is to secure a small business loan from a Bank for the past 4 years. The Government provided lots of cash infusions to help the crippled economy but not much of that stimulus has landed into the hands of the merchants that truly need it to grow their businesses. A recent study points to one of the biggest issues that a small to medium size merchant has in securing a traditional loan, the issue, small businesses are short on collateral. Banks typically look to secure loans over $25,000 with at least 300% collateral against it.
The study, from Pepperdine University says, “nearly half of the 1,200 businesses surveyed sought a bank loan, but 60 percent had their application denied. A first-quarter 2023 study from the finance site MultiFunding explains why the refusal rate is so high, and how banks think about your business and categorize small-business borrowers. Banks currently consider 15 percent of small businesses “non-lendable” due to their lack of collateral, and another 47 percent are considered “marginal” or “B” borrowers”
“These businesses will have to turn to factoring, merchant cash advance loans, unsecured loans and private money loans,” the report states. “They pay a high premium because of their lack of collateral.”
“While 20 percent of owners received SBA loans, 25 percent were given unsecured lines of credit, merchant cash advances or borrowed from a private lender. Another 22 percent got a factor loan, which is essentially the sale of your receivables at a substantial discount.”
Some business have equipment, product inventory, technology hardware, company vehicles they can use as collateral. But for many, collateral is scarce. Most business owners that can secure a traditional bank loan have to risk their homes as collateral. This is a heavy stress to have to manage if the business should fail and the loan default. Not only are they out of business, they also can become homeless!
Fast Merchant Advance has a great solution as an alternative to a risky bank loan. Apply for a merchant cash advance today from Fast Merchant Advance and you can take advantage of:
- No traditional personal guarantee required – less personal risk
- No set time period to pay the cash back – more flexibility
- No set monthly amount to be paid back – better for your cash flow
- No collateral required to secure the cash – easier to get approved
The cost of the money is higher then a bank loan, however, what difference does that make if the banks are not really lending you the money in the first place? And if they do, you are risking your home and a lot of your assets if something should go wrong!
With our program you know exactly what your getting into, how much it will cost, how much is deducted each day (to roll with your business) and most importantly, in return for paying a higher cost on the dollar you leverage all the risk and liability on us rather then on yourself. Fast Merchant Advance has a typical turn around time period of 5 working days from when the Merchant applies to when the Merchant is funded. fast, easy, and hassle free.
Contact Us Today for a Instant Pre-Approval by Phone Call or complete our Merchant Advance Application
