With many merchants being turned down by traditional lenders, they are becoming increasingly reluctant to apply for financing opportunities, according to a recent survey conducted by Merchant Cash and Capital.
The survey found 76 percent of small businesses who are looking to obtain a loan from traditional lenders describe the process as “difficult” or “extremely difficult.” These processes have recently become more difficult because banks have little faith that businesses will be able to pay off loans due to the unstable economy.
“Merchant cash advances are proving to be an acceptable and timely substitute for merchants who need funding for a variety of reasons,” said Stephen Sheinbaum, president and CEO of MCC. “Unlike traditional lenders, MCC makes the process easier and quicker, which can be a true business-saver for those merchants in need.”
Small businesses that use these non-traditional lending opportunities should be sure to protect themselves with the appropriate forms of small business insurance in the event there are any issues with the financing.
