The world of business is the one that is always looking for something new. Surely, after decades of relying on banks to meet all of a business’s financial needs, business owners are looking at other sources of finance for businesses to meet their current demands. This is because the current trend proves that business owners today are not satisfied with the monopoly banks hold and want to find alternative ways through which they can attain financial capital for their business in a much faster, safer, and transparent way than banks allow them too.
Fortunately, there are many different methods today that are capable of doing just that and these include crowd funding, credit unions, and Merchant Cash Advance. All of these aforementioned ways are completely different from banks and many people claim that they are even better than going to a banking institution.
While banks suffer from problems like bureaucracy, tediousness, and many restrictions on money and how to use it, they still have some of the best perks available for their customers. From low-interest rates to access to loans anywhere in the world, banks surely show why they have been on top of the financial world for a century.
Yet, let us find out which of these alternative sources of finance for business can come close to the workings of banks.
Crowd funding
Crowdfunding might be one of the best methods of obtaining finance for businesses today. The money that business owners attain from here is not a loan so they do not need to pay it back. Instead, what they give is an investment into the business that comes from hoards of people who donate money for the business owner’s proposal.
While attaining crowdfunding is amazing, it still has its own disadvantages. Firstly, its system is not yet fully established and requires at least a few decades worth of making. Secondly, it will take average business owners somewhere around a few months to years to get the funding he/she needs if he/she is lucky.
Credit Unions
Credit Unions have been one of the best sources of finance for business for almost as long as banks have. They have a better democratic system than banks that allows them to share their profit with every member of their union. So, any business owner can attain low-interest rate loans in coherence to their needs. But they are closed unions and require an introduction from an already existing member to gain membership. And there are limits to how much credit anyone can take.
Merchant Cash Advance
Merchant Cash Advance is an especially designed source of finance for business for business owners. It allows business owners to negotiate on their own terms and get loans much faster and safer than anything else. Business owners repay their loans with methods like ACH withholding.
ACH withholding is where a small portion of the business owner’s future credit card sales is deducted regularly directly by the lender through the ACH system until it is repaid in full. This saves a ton of hassle and time.
So, Merchant Cash Advance surely comes as a winner among the alternative sources of finance for business today.
