How many different funding sources should I apply for?

The world we live in offers many opportunities for entrepreneurs. There will always be resources to help you, no matter what your business is about.  However, it’s no secret that funding sources are a scarce commodity for most entrepreneurs.

There are so many funding sources out there, that many businesses don’t know where to start. But when you are a startup that in need of fast cash it can be tempting to apply to for as many funding sources as possible. But that may not be the best option for your business.

Whether or not you plan to apply for multiple funding sources, knowing their pros and cons is crucial.

Bank Loans

Pros

• Have low-interest rates that can be set at a fixed monthly rate.
• Can help build up your business credit
• available funds for a large number of business purposes.
• Provides financial guidance from a Business Banker.

Cons

• Typically requires a hold on collateral.
• Requires a high business and personal credit score.
• There will be a lot of paperwork up front.
• Low approval ratings.
• A long wait time to hear the status of your approval.

Venture Capital

Pros

• You can secure large amounts of cash for your immediate business needs.
• There is often no repayment schedule.
• Venture capitalists assume the risk of your business’s stability, despite your liability.

Cons

• You will often be giving up a portion of your company when it comes to this funding source. This is true in profit sharing or relinquished control rights.

Merchant Cash Advance

Pros

• There are fewer requirements than a traditional bank loan is going to ask for.
  • At eBusiness Funding, we actually only have two requirements of our customers. The first is that you have been operating as a business for at least six months. The second is that you are doing $10,000 a month in sales revenue.
• Approval rates are higher in MCA’s than they are with Venture Capitalists or Bank loans.
  • Bank loans traditionally only accept 20% of those who apply. At eBusiness Funding, we accept 90% of those customers who meet our minimum requirements.
• MCA’s give you complete control of the funds. Merchants are free to use funds for what ever they feel their business needs.
  • At eBusiness, we don’t claim to be the expert in your industry. We allow you to use the funding the way you need to in order to grow your business’ future.
• No fixed monthly payments.
• No credit score required.
• You can receive the cash you need in as little as three days!

Cons

• Potential to get stuck in the trap of continued reliance on merchant cash advances.
• Expense planning will be key while repaying your advancement because of daily payment requirements.
  • eBusiness Funding believes in the future of your business and offers MCA’s without collateral. Our requirement for unsecured funding deals are daily payment withdraws. However, this shouldn’t concern you.  We base the daily payments on a fixed percentage of your daily credit card sales. This means tailored payments to the health of your business. Payments that fluctuate with your daily sales until the full advance is paid off.

Alternate Options

Another option, but one that we wouldn’t recommend, is stacking. Stacking is the act of securing funding from multiple, individual sources at once. Though the funded amount may be greater, your payback amount will be much higher. Even still, choosing to stack your funding sources is sometimes a necessary decision. Below, we’ll explain the pros and cons of this type of funding. Firstly, Familiarizing yourself with your funding provider’s policies is crucial. Second, it’s important to note that a bank may deny you for a loan if you have too many credit issues in the last six months. They also may deny you if you have too much outstanding debt. However, negative loan debt is a small detail to venture capitalists during business expansion.

Next Steps

It all depends on your situation and only you can be the judge of that. If you’re in need of fast funds for a project, consider a merchant cash advance with eBusiness Funding. Contact eBusiness Funding now or complete the contact form on this page now.

Merchant Loans For Contractors

Merchant Loans And How They Work

Trying to get working capital in a hurry for your contracting business? Merchant loans offer a way for small and growing businesses to meet their financial goals. As valuable as they can be, it’s important to understand how exactly they work. A merchant loan is a very different animal than some of the funding options you may have used before.

A merchant loan, often also called a merchant cash advance, is a sum of money given by a merchant in exchange for a portion of future sales until it repaid. Unlike traditional loans, they are not as difficult or time-consuming to get. The flexibility of merchant loans are making them more popular than ever, and there’re several reasons why.

Merchant Loans—The Benefits

Perhaps the most appealing aspect of merchant loans is how easy it can be to get one. Credit score and collateral don’t affect your chances of getting one. Even if banks have turned you down, your chances won’t drop when you apply for one. Instead, merchant cash advance providers look at your present and projected monthly sales. The success of your business is the only deciding factor.

The second major benefit that sets merchant loans apart from the rest of the market is how fast they are. Don’t spend your time filling out documents and waiting weeks for approval before you ever get your capital. Instead, you can get the entire process done online. Because your businesses monthly sales are the majority of qualifying criteria, you can easily get working capital in days.

Repayment is also easier to deal with. Remember how payments are based on your sales, not a flat number? This means that if your sales are low, your payments lower as well. You don’t worry about covering high monthly payments when business is a bit slow. These have particular applications for you as a contractor.

When Might You Want A Merchant Loan As A Contractor?

While any business can take advantage of the benefits of a merchant cash advance, some, in particular, are well-suited for it. For example, newcomers who haven’t been around long enough to build up credit or collateral can get money based on their success. At the same time, business veterans shouldn’t shy away either. The quick infusion of working capital can get you through a rough patch without the need for a loan.

Sometimes, certain industries are a good fit as well. Contractors are certainly a strong example.These businesses can have large initial overhead and heavy credit card sales. In addition, working capital needs stemming from clients being slow to pay aren’t an issue when using merchant loans. Perhaps most importantly, contractors traditionally struggle with many of the major lenders out there, and there is a bigger audience out there for alternative funding as a result.

Merchant Loans From eBusiness Funding

eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances. Many businesses that are unsuccessful with traditional lenders find luck here. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we place no restrictions on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take an established percentage of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? If you’re ready to begin, just fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.

Where To Look For Small Business Funding

Small businesses are the backbone of the U.S. economy, but it can often be difficult to get funding. Small businesses are less likely to find funding from lenders, so you need to be creative. This article is going to go over some of the many ways that you can pursue small business funding.

Traditional Lending Options

First of all, most small business funding most often comes from common sources.  These are more viable if your business has been built up, so be mindful of the state of your business if you pursue this path.

Bank Loan. Receiving a bank loan is becoming more difficult. Strong collateral and good credit can help secure a traditional bank loan.

SBA Loans. Small Business Association loans are growing in popularity in today’s market. If you meet the criteria this can be a great option.

Nonprofit Microloans. Nonprofit microloans, such as Kiva, get used  for small businesses in developing countries.

Self/Private Funding

These sources of funding can be very useful, but generally are only available in certain circumstances. In general, these are viable but not sustainable.

Family and Friends. Sometimes, support begins at home. If your family believes in your business, they can be financial backers. Many looking for small business funding use this as a start.

Business Lines of Credit. If you have good personal credit (around a score of 700) this could be an option for you. Granted, many business owners looking for funding may have some credit trouble.

Prize Money or Contests. If you’ve got a great business idea and time to enter, this could be for you. Contest exist where the prize money goes towards funding your business.  In addition, this can also serve as advertising and promotion for your new business.

Personal Savings or Assets.  Selling off your assets or using your savings can provide quick cash. Just make sure you don’t risk too much to get your business up and running.

Government Funding Options

Government Small Business Grants. Grants are industry-specific generally. These also have guidelines on how you use your funds, as well as outcomes that you need to achieve as a result of the lending.

National Association for the Self-Employed. NASE offers grants and scholarships for self-employed business owners. However, like a grant, you are responsible for meeting certain goals grant.

Local Government. Each state and local government has a branch which assists with grants and loans.

National Institute of Health Funding. Funding is available through NIHF. However, to qualify, your business will need to conduct certain types of research and meet certain criteria.

Alternative Funding

These off-beat sources are becoming more popular as funding is harder to find. Here are some of the many options.

Crowd Funding. A growing lending method in the financial market is crowdfunding. Crowdfunding websites allow you to create a personal web page. These pages explain the goal funding will help achieve.

Venture Capital. There are strict criteria involved with venture capital.These may block off many businesses from this form of lending. At the same time, it’s still a possibility.

Industry-Specific Funding. Certain industries have sources of funding for businesses in their category. This is a great way of tapping into your local resources, as well as getting your community involved.

Local Agreement. Small businesses and nonprofits may be willing to work with you. These can help increase patronage of your business, in turn generating extra cash flow. This is especially applicable to businesses selling goods.

Franchising. Franchising your brand is a great way to raise funds for your business. Businesses that are is thriving but need extra management and capital to expand are good candidates. At the same time, this isn’t for everyone.

Community Agreements.  Try reaching out to small businesses or nonprofits in the community. These increase your presence in the community and the market, while increasing foot traffic. As a result, you could develop new customers. You might need to do some volunteering as a part of the agreement.

Merchant Cash Advances For Small Business Funding

Another one of the more popular options out there are merchant cash advances, such as those provided by eBusiness Funding. Our aim is to support businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances that are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we put no limits on your spending. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also simple. Rather than large monthly payments, we take an established percentage of your future sales. This percentage stays the same, so if business slows down, you pay less.

Sounds good? If you’re ready to begin, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.

Why Business Cash Advances?

In the current economic climate, some method of outside funding is essential for almost many businesses. However, post-recession, many banks have tightened their criteria. Their aim to only lend to borrowers they seem as stable as possible. With more businesses getting turned down, this has led to a rise in alternative funding solutions for those who need funds, but are unable to get them from banks. One of the most popular types of this is a business cash advance, also known as a merchant cash advance.

When wondering what the value of a business cash advance is versus some of the other alternatives like microloans or business credit cards, there are a few main points that you should consider.

Things To Consider

Ease of Qualification: One of the biggest things holding businesses back when it comes to funding is credit history. This is both the business’s as well as that of the owner. Business cash advances do not focus on credit history, collateral, or many of the other factors that loans do. Instead, their main focus is on the potential of a business to be successful.

Speed: Many have heard horror stories about the long waits for loans from banks. With business cash advances, speed is essential, and it is common to get your funds in a matter of days after you qualify.

Repayment: Rather than a large monthly payment, business cash advances are very different. These function as the advance lender buying a portion of future sales with the advance. A certain steady percentage of future sales will go to the lender.

Minimal Restrictions: Some banks, before providing a loan, require a plan explaining how you will spend the funds. In some cases, they will not allow funds for certain things, like payroll or general cash flow. Business cash advances carry no such limitations.

Who Can Use A Business Cash Advance Best?

While any business can take advantage of the benefits of a business cash advance, some are perfect fits. For example, newcomers who haven’t been around long enough to build up credit or collateral can get money based on their success. At the same time, business veterans shouldn’t shy away either. The quick infusion of working capital can get you through a rough patch without the need for a loan.

In general, business cash advances serve as a solid alternative in a market, where businesses are finding themselves rejected more and more by “traditional” lenders. These can be better than incurring heavy debt or turning to alternatives like private lenders. A business cash advance is a versatile way to get money into your business quickly while incurring as minimal an amount of risk as possible. At eBusiness Funding, we aim to do just that.

How Do They Work?

eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances that are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we place no restrictions on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take an established percentage of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? If you’re ready to begin, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.

Sources Of Funding For Small Businesses

The question of funding for small businesses can be a struggle for any small business owner. As rewarding as this can be, running your own business carries constant challenges, from maintaining staff to financial struggles to making sure you are providing the services your clientele want. It’s easy to get swamped in some of the day-to-day functions of business, but you also have a responsibility to keep your business financially healthy. To do so, outside funding is often essential. The question is though, where do you begin?

What Options Do I Have For Funding My Business

The good news is that there are lots of different lenders out there that provide funding for small businesses. However, this can be a bit overwhelming at first. To help break this down, let’s look at two main categories:

 Traditional Funding Sources

• Government resources
• Banks
• Private lenders

Many will recommend small business loans for banks, and there are good reasons why. Small businesses are likely to get low interest rates, which is crucial. However, the fact of the matter is that increased regulation is causing banks to hold back on their small business loan offerings. Private lenders and government resources can be valuable as well, but don’t be surprised if there are specific requirements that you will have in order to get funding. Generally, if your business is just starting out, it can be hard for you to find funding.

 Non-Traditional Funding

• Micro-lending
• Peer-to-peer lending
• Crowd funding
• Merchant Cash Advances

If you have trouble getting funding, these may be better sources. In general, there is less of a barrier to entry, but there may also be other issues, such as higher interest rates or lower amounts of money being available. In some cases, like crowd funding, there is no guarantee at all how much funding you will get. Before looking at options for your funding for small businesses, it’s important that you evaluate your business.

Questions to Ask Before Choosing a Lending Method

• Why do you need the money? Are you looking to fund payroll? New equipment? Maybe a new business?

• Banks are going to want to see the whole picture. You should be prepared with all your business information.

• Who is taking on this loan? Depending on the type of business you may be personally responsible for the debt.  This means a bank can hold your personal assets as collateral if the company doesn’t pay.

• What does the management team look like for the company?

• Traditional companies want to know who they are lending too. It makes a difference and banks will check the credit history of those people listed.  A background check may also be completed.

• How fast do you need the money? Non-traditional lenders have shorter turn around time frames. There is also currently less regulation in the space. However, with less regulation comes increased risk to the lenders. This risk is mitigated in the form of higher interest rates.

• In most cases when you apply for a bank loan you are required to submit a business plan.  As well as your financials from the last several years.  If you are looking for reoccurring funding a traditional loan may not be appropriate. You may want to consider another alternative.  You can also talk to your bank about a line-of-credit.

Using Merchant Cash Advances

 eBusiness Funding provides alternatives to traditional small business loans. By working with us, you can get funding for small businesses quick, with minimal roadblocks If you meet our minimum requirements, you can be approved and funded in a matter of days. The benefits of choosing eBusiness Funding include:

• No upfront costs.
• No application fees.
• Up to a $500,000 cash advance, based on your current financial strength.
• Cash in hand as soon as 72 hours.
• 90% of applicants  who meet our requirements get approved.

Get started with eBusiness Funding for the funding your small business needs with more accessibility and speed than many of the options out there. Fill out the simple contact form on this page now and get the financial support your business needs.

How Can I Get Started Funding a Business?

Funding a business is always a challenge. Whether you are new to the game or have been around for decades, the game is changing. You have many more options than you had even a few years ago. The question is where do you begin?

Well, let’s start at the beginning. Before you begin your journey of funding a business, you have to ask yourself what you are looking to fund. Think about it this way:

• Are you funding an expansion?
• Are you looking to buy new equipment?
• Are you trying to cover your payroll as you wait for your invoices to be paid?

Whatever your reason, there is an option for funding a business for you.

If you are looking for expansion funding consider these options:

• Bank Loans
  • This is a great option if you are an established business with a great credit score.
• Small Business Grants
  • If you are a specific niche business that meets the requirements of a specific grant, by all means, apply for it! This is free money that can really put you on the path to success.
• Merchant Cash Advance
  • If you need funding fast, considering a merchant cash advance. This type of alternative funding provider is looking to help you grow your business quickly. Even if your credit score is not perfect or you have only been in business for a short period of time, this is an option to consider.

If you are looking to purchase new equipment, consider these options:

• Commercial or Small Business Credit Cards
  • This is a good option if you know you will have the money to pay it off in the next month. Failure to pay off the full balance of the transaction by the time your bill is due can hurt your business’s credit score.
• Bank Loans
  • If you are making a larger purchase than your credit limit, such as a commercial vehicle or large piece of machinery, a bank loan can be an option for you. With one of the lowest interest rates available when it comes to funding a business, if you can qualify, consider it. This one of the best options for the long-term.
• Merchant Cash Advance
  • Sometimes when you are looking to purchase new equipment, you need the funding fast! That is where a Merchant Cash Advance can come in quite handy. This funding provider can get you the funds you need in as little three days! So if there is a new truck you are looking to buy for your business, you won’t have to worry about it being sold off the lot before you have the funds.

If you are trying to cover your payroll, think about this funding option:

• Merchant Cash Advance
  • When it comes to paying for you employee’s salaries, you never want to be late. That is why when you are a business that relies on your clients to pay back their invoices; a merchant cash advance can help. This type of funding provider understands when you rely on other clients to pay you back you don’t always have the cash you need when you need it. But with a merchant cash advance, you can pay the provider back when your clients pay you back through a fixed percentage of your daily credit card sales.

When you are considering funding a business, one thing all of these funding needs have in common is a merchant cash advance. A merchant cash advance provider takes the guess work out of if you will be approved or not. With simple requirements and a fast turnaround time, thousands of businesses choose this option for their funding needs!

Ready To Get Started?

Contact eBusiness Funding now at 305-985-6593 or complete the contact form on this page now.

I Need A Merchant Cash Loan, Where Can I Get One?

People often ask us, “why would I use a merchant cash loan”? Our clients know they need funding to either grow their business, maintain their daily operations, or pay off debt. This is not uncommon for small businesses to need funding to grow or operate their business. Selecting the right source of funding for your business model is important to be able to sustain or grow your model. Selecting the wrong funding source can be harmful to your business overall. We can help you determine the right merchant cash loan for you.

There Are Several Reasons To Use A Merchant Cash Loan.

Timing

We can get you cash fast! Our application process is simple. We have made it easy for you to apply online and get the funding you need. We will then review your application and respond within 24 hours. From the time you apply, are approved, to money in your bank account is generally just three days. You can start using the cash immediately after.

Compare this to a bank loan which can takes weeks or months.

Simple Qualification

We only have a few requirements that you must meet to be considered for qualification.

• You have been operating as a business for at least six months
• Generate over $10,000 in monthly revenue

High Acceptance Rate

Our application process has over a 90% acceptance rate for those who meet our minimum requirements. A traditional bank loan application process has approximately a 20% acceptance rate.

Use The Funds The Way You Want

A traditional lender will often require a business plan to understand how you plan to utilize the funding provided. There are rules for things that they can lend for and things that they can’t. For example, a bank will typically not finance payroll funding but a merchant cash loan can be used for payroll financing. At eBusiness, we will not ask for a business plan that details where your business wants to be in five years. A bank will ask for such a plan. We believe that you know your business model and as an owner you want to see your business thrive. As a merchant cash advance business we want to see you succeed.

The Risks With A Merchant Cash Loan

We don’t want to say that a merchant cash loan is for everyone. Just like any lending method there are pros and cons and risks associated. Some of the risks include:

Less Cash Flow

We take a percentage of your daily credit card sales until the amount of the advance including fees has been paid off. As a business owner, you must be prepared to run your business on less incoming cash until the advance is paid off. Compare this to a general bank loan that you are paying on a monthly basis and have all month to plan for.

An Endless Cycle

You have to be careful that your business model is right for a merchant cash loan. If you are in the business with slower sales that will not be able to payback the advance quickly, the window is much shorter than a bank loan to pay it back. Customers can take out multiple cash advances, but they must be mindful of paying them back and not fall into a trap of further debt.

Getting Started

So if you think that a merchant cash loan could be right for you, give us a call today! We want to talk to you about our Merchant Cash Advance product.

Business Debt Consolidation – Does it Make Sense?

Have you been collecting debt for several years and now you don’t know how to get out from under it? Are you considering business debt consolidation? Having multiple business loans or alternative lending products with high-interest rates can really put a damper on your free cash flow.

Business debt consolidation is an option that allows you to combine several of your loan products into one large loan. Having multiple lending products without the ability to comfortably pay them back can be harmful to your personal credit score; as well as, the business’ credit score. Allowing your debt to grow can hurt your ability to get another loan product down the line when you are looking to enhance your business.

Loan stacking has become an issue in today’s small business world because the approval rates for traditional loan products with low-interest rates are so low. Businesses are being forced to take higher interest loans with a smaller balance, leading to additional loan products being created.

A large factor to being able to qualify for a bank loan in the future is the amount of debt your business carries. Banks will look into how you have handled debt in the past and if you have kept it in balance with your business’ profitability. Business debt consolidation can be a great option for a business to help refinance their loan products into a single monthly bill to pay. It will allow you to combine your loans into a new lower-interest loan. Having a single source to pay off will help a business focus on the task at hand, bringing down the total debt.

The Pros of Business Debt Consolidation

• Lower monthly payments
• Lower interest rates
• Single monthly payment

The Cons of Business Debt Consolidation

• Spend more over time
  • Because you are paying back one large bill vs. several smaller ones in a shorter period of time, the interest can sneak up on you.
• Debt can still grow
  • Because you will have a lower monthly payment, you will have cash coming in you are not used to having. You have to be careful to be smart with you money. You can put it towards your principle payment on the loan or save it for the business’ needs.
• This is a band-aid for a bigger problem
  • Remember that just because you can consolidate your debt into a lower monthly payment doesn’t mean that it will solve your problems. You must ask yourself, how did you acquire so much debt in the first place? That is the problem you must address while you pay down your debt.

But just like anything it is important to consider all of your options. Traditional business debt consolidation is not for everyone. Some businesses do not have enough debt for it to make sense. Others have too much debt that they can’t be approved.

Depending on your level of debt there are different options out on the market for you. A Merchant Cash Advance can be used to pay off your existing loan or lending product debts. You will then have a single source of payment that you will be paying back over time through a fixed percentage of your credit card sales. This is an option for businesses that are looking to consolidate their debts but not looking to take out another loan product to do so.

Getting Started

With our simple, easy to apply system, we can get you approved in as little as 24 hours. We can then get you the cash you need in just three days. So if you are ready to start consolidating your debt without the burden of a fixed monthly payment, contact us today! We can walk you through how a Merchant Cash Advance can meet your needs!

Call eBusiness Funding at 305-985-6604 or Complete the contact form on this page.