Protecting Your Small Business in Today's Economy

As a financial giant files for bankruptcy protection, many small business owners may be worried about what will happen to their businesses, especially those who are already feeling the effects of an economic downturn and are in need of funds. Banks have already been tightening their lending practices and with the recent happenings, experts predict that the credit crunch will only worsen. So where does that leave your small business?

Many magazines, websites and blogs are offering advice for getting through this rough period of time. Businessweek.com offers "Ten Resources for Nervous Entrepreneurs," Entreprenuer.com gives advice on how to "Win Sales From Recession-Minded Consumers," and Blackenterprise.com examines the problems faced during a bleak economy in an article titled "Small Business on Capitol Hill."

In addition to these resources, another source of help remains. As acquiring a small business loan in today's economy may be almost impossible, funding can be found through a business cash advance.

A business cash advance is like a loan in the fact that a certain amount of money is lent and must be repaid. But there are many differences that make business cash advances a more feasible source of funding than a bank small business loan, especially in today's economy.

First, borrowers are not required to have excellent credit scores or collateral in order to be approved for a business cash advance. Lenders purchase a business owner's future credit card receivables. This way, the borrower gets a lump sum upfront, while only a small percentage of credit card sales is deducted towards advance repayment until repayment is complete.

Usually, the timeline from application to funding of a cash advance is much shorter than that of a bank's small business loan. This is mostly due to the fact that applying for an advance is very simple, and requires much less preparation, paperwork and documentation than a bank loan. Business owners are usually only required to submit a short application, at least four months of their merchant statements, and a copy of their business' lease.

Cash Prior is an excellent source for business cash advances. Small business owners can visit this site to get a free quote.

Business owners who may be fighting the effects of an economic downturn may be able to save their businesses if only they could get their hands on some sort of funding. A business cash advance can provide them with that money when they need it the most.

Gaston C. writes articles about Small Business Loans for Merchant Resources International.

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