Small business owners across America come into a cash crunch from time to time and struggle to find affordable funding that fits their needs. They reach out to their banks, but they don’t fit within the bank’s box, then they are declined or turned away. So, business owners are now turning to alternative lenders and short-term business loans to fix their need to cover an inventory crunch or vendors that are slow-paying them past 60 to 90 days.
One of the top leading products in the marketplace that business owners are turning to are short-term business loans or merchant cash advances. This type of funding is an advance on future receivables, but lenders only advance 10% to 15% of future receivables. This is never enough for the business owner to resolve their need for funding so they begin to stack multiple advances together thinking this is the way out using one advance to pay off another, but it only compounds the issue and creates a serious cash flow crunch.
Short-term loans are 3 to 18-months in term so being a short period of time the lender needs to keep everyone honest as interest-only payments with a balloon principal payment at the end simply don’t work. So, all short-term lenders do daily or weekly payments to pay back the advance/loan and when the advances are stacked one on top of the other all your available cash gets swept out of your checking account leaving you nothing to work with.
Amerishop Financial is the online marketplace for small business owners looking to fund a project. We specialize in connecting small business owners with lenders who will compete for your business. We believe small business owners drive the economy and we are passionate about helping your company reach its full potential.
You can reach loans specialist by toll-free at 1-877-407-9195, or email at firstname.lastname@example.org or applying online here and we can guide you on which loans are the best fit for your business.