The necessary cash flow is simply not there anymore now that banks are rejecting their credit requests. In order to grow, these businesses have had to seek alternative funding sources, such as our merchant cash advance program.
Melville, NY (PRWEB) December 06, 2012
As the economy continues to grow in the post-recession era, banks have a lot of money to lend, but it has become increasingly difficult for any of it to reach the hands of the small business owner.
Paul Snead, CFO of Merchants Capital Access (MCA), a company specializing in alternative funding for small businesses, says that he has seen a sharp increase in demand for his company's primary product -- the merchant cash advance -- after the new bank lending practices and regulations went into effect, which continued into the third quarter of 2012 with a 44% increase in total amount funded as compared to the same period last year.
"Now that the economy is starting to improve, small businesses that survived the recession are having trouble paying employees, purchasing inventory, or paying bills, despite having ample orders and sales. The necessary cash flow is simply not there anymore now that banks are rejecting their credit requests," says Mr. Snead. "In order to grow, these businesses have had to seek alternative funding sources, such as our merchant cash advance program."
Merchant cash advance companies began to sprout up in droves during the credit crunch of 2007-2008 as an alternative form of funding for business owners that no longer had access to bank financing or home equity. With a merchant cash advance, a business receives an upfront cash advance payment against credit cards and all other forms of future electronic processing. With no personal guarantee, funding within a week, and without the paperwork required by banks, merchant cash advances became a popular option for businesses and has grown to a $1 billion a year industry.
"With a bank loan, business owners sometimes risk losing their homes if they fail to repay, but they have no legal obligation to repay merchant cash advances if they have to shut down, as long as they follow the terms of the contract," adds Mr. Snead. "If a competitor opens up across the street and drives them out of business, there is no recourse to the business owner. This, along with the speed in which business can receive funding, is what makes the merchant cash advance program so attractive to small businesses, and we expect continued growth in the coming years."
For more information on Merchant Capital Access contact Paul Snead at (877) 522-7410 or visit http://www.merchantscap.com.
About Merchants Capital Access
Merchants Capital Access, headquartered in Melville, New York, is one of the largest merchant cash advance providers in the country. They provide small and medium sized businesses with fast and easy cash advances for expansion, improvements, or any other business expenses.