Maintaining a Small Business in a Downturned Economy - Merchant Cash Advance
Many small business owners in the United States may feel like the problems of the economy have landed directly into their own laps.
In this situation it is important to be both pro-active and reactive.
Taking early action to offset the financial problems that have already occurred and others to prevent further financial turmoil from arising is vital.
Choosing to receive a merchant cash advance, an upfront sum of cash in exchange for a business's future credit card sales that can be used at the business owner's discretion, can be a smart step for a small business owner, in addition to other procedures that can promote healthy business during difficult times.
Believe or not, there are companies that existed during the Great Depression that are still around today.
They found innovative ways to make their companies last during a time when the "dollar value" of international trade fell more than 60 percent, an average of 600 banks failed each year, and unemployment rates hit 25 percent.
179-year-old beer-making company, Yuengling and 175-year-old guitar-making company, Martin Guitars, were both featured in a Business Week article titled "Learning from the Great Depression.
" In the article, the company's CEO says Martin Guitars' resiliency can be credited to remaining fair and equitable and maintaining strong relationships with dealers.
He is quoted saying, "Our billing has always been routine...
No shenanigans.
We don't offer discounts to high-volume retailers.
" This is advice that many small business owners may be able to benefit from, because their small size and ability to interact with and develop relationships with their customers allows them to deliver customer service that big companies just can't provide, and can keep customers coming back for the quality service, rather than the low prices.
Also in the article, Dick Yuengling, the current Yeungling CEO, said "...
the family kept the business afloat by diversifying into dairy farming, Broadway shows, and dance halls during the Great Depression instead of shutting down or selling out.
" In addition to these tactics that a small business owner can learn from history, some small business owners have tried methods such as cutting back on purchases whenever possible, decreasing employee hours, bargain hunting for the best prices on equipment, etc.
, and making sure to pay themselves last.
But when you've tried all of these things and you still find that you need more money, a merchant cash advance may be the innovative step that should be taken by today's small business owners.
What makes a merchant cash advance so practical, especially today, are its unique characteristics.
Borrowers do not need to have excellent credit to receive a merchant cash advance.
They also do not need to provide collateral or personal financial statements.
Merchant cash advance payments are deducted automatically from a business's credit card sales.
Therefore, as customers make purchases using their credit cards, a small percentage from each sale is used to repay the merchant cash advance.
Small business owners can get merchant cash advances by finding a merchant cash advance company online, completing a short application and providing a funding specialist with the last four months of their business's credit card statements.
In this situation it is important to be both pro-active and reactive.
Taking early action to offset the financial problems that have already occurred and others to prevent further financial turmoil from arising is vital.
Choosing to receive a merchant cash advance, an upfront sum of cash in exchange for a business's future credit card sales that can be used at the business owner's discretion, can be a smart step for a small business owner, in addition to other procedures that can promote healthy business during difficult times.
Believe or not, there are companies that existed during the Great Depression that are still around today.
They found innovative ways to make their companies last during a time when the "dollar value" of international trade fell more than 60 percent, an average of 600 banks failed each year, and unemployment rates hit 25 percent.
179-year-old beer-making company, Yuengling and 175-year-old guitar-making company, Martin Guitars, were both featured in a Business Week article titled "Learning from the Great Depression.
" In the article, the company's CEO says Martin Guitars' resiliency can be credited to remaining fair and equitable and maintaining strong relationships with dealers.
He is quoted saying, "Our billing has always been routine...
No shenanigans.
We don't offer discounts to high-volume retailers.
" This is advice that many small business owners may be able to benefit from, because their small size and ability to interact with and develop relationships with their customers allows them to deliver customer service that big companies just can't provide, and can keep customers coming back for the quality service, rather than the low prices.
Also in the article, Dick Yuengling, the current Yeungling CEO, said "...
the family kept the business afloat by diversifying into dairy farming, Broadway shows, and dance halls during the Great Depression instead of shutting down or selling out.
" In addition to these tactics that a small business owner can learn from history, some small business owners have tried methods such as cutting back on purchases whenever possible, decreasing employee hours, bargain hunting for the best prices on equipment, etc.
, and making sure to pay themselves last.
But when you've tried all of these things and you still find that you need more money, a merchant cash advance may be the innovative step that should be taken by today's small business owners.
What makes a merchant cash advance so practical, especially today, are its unique characteristics.
Borrowers do not need to have excellent credit to receive a merchant cash advance.
They also do not need to provide collateral or personal financial statements.
Merchant cash advance payments are deducted automatically from a business's credit card sales.
Therefore, as customers make purchases using their credit cards, a small percentage from each sale is used to repay the merchant cash advance.
Small business owners can get merchant cash advances by finding a merchant cash advance company online, completing a short application and providing a funding specialist with the last four months of their business's credit card statements.
