CORAL SPRINGS, Fla. (CitizenWire) — With the outlook of traditional business credit markets remaining bleak, many small business owners are taking matters into their own hands, seeking out alternative means of finance, and this is proving to be a boon for the business cash advance industry according to BusinessCashAdvance.
According to The State of Small Business Report released in December 2009 by Network Solutions, LLC and the University of Maryland, the biggest factor holding small businesses back is access to adequate financing. Less than half (48%) of the small business owners surveyed reported that they have been successful in meeting their short-term capital needs, and only a third are meeting long-term investment needs.
Many attributed the lack of financing to the dwindling availability of bank loans, business lines of credit, and business credit cards. In response to the gap in capital access, the study revealed, numerous small business owners are taking personal cuts in income (46%) and using personal assets to keep their enterprises operating (42%).
The shift in funding sources could also denote that creditworthiness among small businesses is becoming a growing concern. According to the researchers, “Given the spike in reliance on personal assets, it is a reasonable assumption that small businesses are becoming less credit worthy to obtain financing in the future.”
Enter the business cash advance industry. In order to secure the capital they need to preserve their businesses, many small business owners are turning to these asset-based lending arrangements based on future credit card receipts. Since this financing tool is based on customer sales and not on the business’ credit rating, it is proving to be especially appealing.
Business cash advances may just be the life preserver many small businesses need to get through these turbulent economic times.
Founded by financial professionals, BusinessCashAdvance provides cash advances for small business. Financing companies in a broad spectrum of industries, it has helped retail stores, automotive shops, beauty salons, medical practices, florists, pet stores, restaurants, and others.
A free application is available online at www.businesscashadvance.com or by calling 866-411-0606.