According to Forbes research, 65% of new jobs created in the U.S. since 1965 have been created by small businesses and an estimated 25% of American small business stay in business for 15 years or more. Yet, did you know that during 2011, there were an estimated 800,000 small business that received business loans in the United States, because many (an estimated 33%) small businesses say that unpredictable business conditions lead them to seek loans.
The real problem for these companies in these turbulent economic times is how to get small business loans fast. A popular way to get business loans fast is merchant cash advances, because they provide immediate funds in exchange for an interest profit on transactions of credit/debit card sales.
However, there are some risks that come with getting business loans fast. While the immediacy is definitely a boon you want, there is always small print that needs to be thoroughly checked. The New York Times suggests that asking the lender to show all the fees up front, and make sure that each is understood thoroughly. Some lenders will ask for a fixed rate, while others will take a percentage of the credit card sales everyday. The Times writes, “A lender, for example, might demand 10 percent of your daily credit card receipts until you have paid back the agreed-upon amount. Don’t focus on the 10 percent figure — that is not the rate you are paying. I had to explain to one client that his effective interest rate was more than 90 percent.”
Securing these business loans fast is one of the only ways that small businesses can stay afloat nowadays. San Antonio News reports, “The U.S. Small Business Administration says the dollar volume of small business loans dropped 15% from 2008 to 2012. As credit has become harder to get, entrepreneurs have been less able to launch new companies.”
Securing business loans fast is vital for small businesses. With care, the risks of taking out the money can be avoided. If you have any questions about getting business loans fast, feel free to ask in the comments! Refernce materials: www.businessbacker.com