Types of Funding Available
What Type of Funding Is Available for Your Small Business?
When we talk about using Shore Funding Solutions for your business needs, you have choices. We primarily offer choices between Small Business Funding / Advances and Merchant Account Funding. Both financing arrangements can be useful, and with all of our resources and experience we can help you decide which is best for the growth of your business.
Small Business Funding
Small business funding is essentially a cash advance taken by a business in order to pay for expenses. The expenses can include a myriad of things, but some of the most common ones are inventory, physical expansion, employee payroll, and new or additional equipment. This financing arrangement has a specific date by which the borrower must repay the entire advance. It is similar to a traditional financing agreement between a bank and a borrower.
What sets Shore Funding Solutions and small business funding apart from more traditional lenders and their agreements? Primarily, it is the ease and flexibility this kind of funding provides for the business owner. The application process is fast and simple and the turnaround time to access cash is very short by industry standards. Also, the amount of money available to businesses varies greatly depending on individual circumstances and needs. Capital advances can range anywhere from $2,000 to $200,000. The terms vary greatly as well. In general, however, these are “short term” cash advances which are paid back by the business owner in 4 to 24 months. Repayment terms can vary, but there is a due date by which you must repay the entire advance. Your business remits the same amount every day or month until it satisfies the entire advance and the cost.
How Small Business Funding Helps Your Business, Growth & Profits
What does all of this mean to your business? It means that you can quickly access capital to help you over short-term hurdles. You can borrow a few thousand dollars to purchase extra inventory and quickly pay it back when you sell your stock. Alternatively, you may want to secure longer terms to finance a year-long construction project to expand your facilities.
Small business funding also allows you to seize opportunities to reach new clients and expand your company when time is of the essence. Don’t miss out on a big opportunity because of cash flow!
Here is an example of how a short term small business capital advance can help your business:
Jack’s Landscaping gets an advance of $80,000. The term is 12 months long. Jack’s company pays $____ every day for a total repayment amount of $______. Because of the extra capital, Jack’s Landscaping can increase revenue by nearly $200,000 because they purchased new equipment to take on 20 additional projects
Your costs vary based on our risk assessment of your business.
Merchant Account Funding for Small Businesses
Merchant Account Funding is a flexible capital option that essentially allows your small businesses to access cash now by selling a portion of your future credit card sales. We advance you up to 100% of your average credit card sales which can be used for any reason that you need. We then hold a percentage of each day’s credit card settlements to repay the advance. The amount you pay back each day depends on the amount of revenue you generate. On slow days, you pay less and on busy days, you pay more.This payment arrangement helps you keep your cash flow steady and avoid big lump sum payments during times that.
Another benefit to you: as you pay down your advance, you can continue to borrow against future revenue. You will have an ongoing supply of capital.
Unlike the straight business funding cash advance which is paid back in fixed daily or monthly installments and due in full on a certain day, a merchant cash advance is a purchase and sale of future payment card receivables.
It is an extremely “cash-flow friendly” way for you to have access to capital when you need it. Instead of paying a large sum every day or every month, a fixed percentage of your business’s credit and debit card sales are automatically paid daily. Because you pay a fixed percentage of your revenue, you pay a larger amount on busy days than slow ones. Once you have delivered the full amount of the credit card revenue you sold, the remittance process stops.
You can use your merchant advance for any business related expense. You can pay for payroll, a trade show, improvements, seasonal downturns, equipment and just about anything else your business needs.
Here is an example of how merchant account funding can work with your business:
Your surfboard business over the course of a year generates $300,000 in credit and debit card income. Nearly all of it is in the spring and summer months. You sell $50,000 of your future credit card sales to Shore Funding Solutions. You use this cash to purchase new inventory for the busy season, and cover the cost of your employees and rent during the winter. Because you pay only a percentage of your credit card revenue, you pay very little back during the slow season. What you do pay comes directly out of credit card receipts. When your business picks up, you remit a greater amount of money.
How Merchant Account Funding Helps You
You have no checks to write, remittances happen automatically through processing credit and debit sales. On slow days, your business remits less and on busy days, more. There is no due date and no fixed payment amount. All of this amounts to more ease and flexibility than any traditional option. Less stress on you means you can put your attention where it matters- your business.
Fill out our online application now and find out how much of an advance you may be qualified to receive. Unlike traditional lending institutions, our funding is not based just on credit scores. Nearly 90% of applicants receive approval for funding.
Terms and costs vary based on risk, but with all of our resources, we will find a solution that is right for you. Our turnaround time is remarkably fast, and you may have access to cash within 24 hours.
When you simply can’t afford to miss an opportunity to grow your business, apply to Shore Funding Solutions and receive fast, easy and flexible access to the capital you need.