The Use of Factoring in Financing your Business

People who are in the business world have one common subject to talk about, and that is “capital”. With the current state of economy that we have today, getting the capital or funds for our business may be a bit tight and difficult to get. That is probably the reason why people have become more and more innovative when it comes to business funding.

Get Funded through Credit Card Factoring

The latest and most reliable source of funds for small businesses these days is through credit card factoring. This is possible with the help of investors and private lending institutions that will provide cash advances to merchants as an alternative to a traditional bank loan.

This type of short-term business funding is unsecured which is why it is highly recommended for small businesses.

There are times when small business owners get into a situation where an emergency funding is needed in order to continue giving out their services. However, when the establishment currently has bad credit and struggling with financial issues, the merchant cannot just get a loan from the bank.

Now, you can easily get the funds no matter what your credit sales status is, through your credit card. If your establishment is accepting credit card payments from customers, you can be eligible for a merchant cash advance.

What is a Merchant Cash Advance?

Merchant cash advance (MCA) is a type of business funding that is easier and a lot more reliable than traditional bank loans. Small businesses that are in need of funds yet currently have bad credit are encouraged to get a business cash advance loan instead. The funding is done through credit card factoring where in the funds will be paid through your future credit card sales.

How to get a Cash Advance?

First, you need to choose a trusted cash advance provider like Our MCA Funding Company Cash Advance. You need to submit the needed requirements such as: your establishments’ credit card receipts for the last 6 months, one more year lease from your landlord, a record of sales stating that you earn at least $5,000 per month and a completely filled out application form from our site.

Quick and Easy

Right after our underwriters have evaluated your application and you got approved, the cash will be forwarded to your account in as quickly as 48 hours. It’s that easy.

Repayment

Upon applying for a cash advance, you will agree to sell a percentage of your future credit card sales to the MCA provider.  Thus, the repayment cash will be deducted from your monthly sales until the cash advance is completely paid. Usually, the amount for repayment is between twelve to twenty percent of your monthly credit card sales.

Building a business and managing it both at the same time takes a lot of talent and continuous motivation. Apart from the two, there is also need for lots of research and intelligent planning in order to avoid mistakes from happening.

Most small businesses don’t do well in the industry and end up shutting down their operation because of the lack of discipline and skills on how to maintain their trade. Holding a degree or two in business does not determine an entrepreneur’s success. It takes a lot of self training, hard work and lots of analyzing.

There are some basics on how to start a business which can help every entrepreneur when deciding to establish that small business of their choice.

Valid Reasons

When building your own establishment, you need to have valid reasons why you want to build it. Of course, there is a motive or basis on why you want to build that business or trade of your choice. Your reasons may be:

Choose the perfect type of business

You need to build a business that is perfect with your skills and the things you like to do. Lots of entrepreneurs often make a mistake of building a business which does not relate to what their skills and hobbies are. What do you like to do? Which field are you good at? You need to answer these before you can be ready in establishing your dream business.

Competition and Products to Sell

Of course, you need to determine what products you want to sell in your business. Be updated with the current competition on certain products and study them. See if you can be successful in selling it and if you can deliver the product in good quality. Your skills and abilities will determine this one.

Checklist

Before that final decision, recheck all the important bits. These are:

Once you figured out the answers and understand them, you can now build that business you are planning to establish. You can ask help from other entrepreneurs about the basics of building a business and to help you get more knowledge about your chosen field.

Building a business may or may not be complicated. It all depends on how you plan and manage things first before giving out that “Go” signal.

Building your own business from the ground up can be challenging most of the time. You need to have a good entrepreneurial character, a strong and smart team to back you up and achieve the income you are targeting, motivation, and of course, money, money, money.

Money provides funds for your business to maintain its operation. There are times businesses will be in need of more money especially when revenues are low. Getting a merchant cash advance is one of the best options to get the needed funds when cash is running low.

There are times in the life of a small business when there is a demand for quick funding in order for the establishment to survive. However, not all small businesses are easily funded the traditional way. Merchant cash advance (MCA) will help you get the cash you need based on your future credit card sales.

One good aspect of MCA is that this type of business funding is unsecured. It does not include collateral, interest fees, upfront fees and processing fees. Another thing about MCA is that providers forward the funds you need into your account very quickly; say less than a week time. MCA providers know how important emergency funds are for establishments, which is why upon getting approved of a cash advance; the merchant can get the funds without waiting too long.

Business cash advances are repaid from your future credit card sales. Through credit card processing, the agreed repayment percentage will be deducted from your sales each month until the entire cash advance amount is completely paid. Usually, it will take six to nine months, but it can be extended in case the merchant isn’t able to repay the cash advance within that period, (i.e. lean months).

You are probably aware that some banks don’t just approve loan applications from risky small businesses, especially those who have bad credits. MCA is different. Even though you currently don’t have a good credit history and you own a restaurant or retail shop (which are considered as risky businesses), you can still be eligible for a cash advance.

Merchants are given a good chance of being funded regardless of their current credit scores. Just make sure that you have another year of lease from your landlord, no current bankruptcy issue and submit all the needed credit card transaction receipts, and you can easily get the cash advance. It’s just that easy!

Getting funds for your small business is easy if you know where to get the funds from. Merchant cash advance is one reliable source of funds for small businesses of any type.

Every entrepreneur’s goal is to find ways in improving their sales. Some business owners even enroll to coaching classes on how to handle and improve their trade’s profit.

When it comes to business owners, years of study and training does not actually bring out all the skills needed to be an excellent entrepreneur. The moment you already own a business is the only time when you can put your entrepreneur skills to the test.

Of course, being a good entrepreneur is not just about the profits alone. It also depends on how you treat employees and coworkers as your teammates.

In a business, money is the most important thing. You can make use of some helpful tips on how to improve your business sales with the help of your employees.

1. Set a goal for the entire team.

Discuss your goals with your employees. Sharing them your goals for the business will actually help increase your sales. How? Well, when everyone in the business team is working on a specific goal, each member will work hard in achieving it. Businesses that give importance to the teamwork between employer and employees are those who actually succeed in the industry.

2. Celebrate your success with the rest of the team.

Once your team has achieved your goal, celebrate the victory with everyone who took part in achieving it. This will also motivate your employees to work harder in the coming goals.

3. Practicing readiness.

In business, having a flexible expectation is a must. In order to survive the demanding world of business, you need to be ready in giving your 101% or more into the job. Remember the saying “Customers are always right”. When the customer unexpectedly request for more than what is ordered, you and your employees should be able to deliver it without hesitation. It is how businesses improve their profits.

4. Help your employees improve their skills.

In order to build a business with strong foundations, you need to help your employees develop their own skills and deliver it effectively. Some business owners put the customer first before the employees because it is the customer who brings in the money. But the truth is every success or failure of the company depends on how an employer deals with his employees. Help your employees build their confidence to make them work more efficiently for your business.

Never take the importance of your employees for granted. Remember that you can’t do it all alone. Having other people helping you build a good business and reach your goals is vital in the market world. Appreciating their value may actually encourage them in helping your business increase its sales.

Most small businesses gain their success in the industry not just because they introduced great ideas or because of their excellent customer services. There is a lot more than just having a a great idea or friendly customer service department that makes a small business shine from the rest of the pack.

In order to have a quality business outfit, entrepreneurs need to develop these five practices and apply them effectively with your team:

1. Set Your Expectations Clear – You need to determine what you want and what the rest of the team’s goal is for the business. It is important that your business is going for a specific goal whether in terms of employees, services to customers, sales and the teamwork of the people involved. If you have clear goals, you can set your expectations and get them as you motivate everyone who is with you in reaching that goal.

2. Gather the Necessary Data and Analyze Them – All businesses have the passion for data gathering. A manager is working on the establishment’s data throughout the day. This is because it is important that the management team is up-to-date with what is happening within the business. There should be a regular flow of information coming into the management team.

3. Exceeding Expectations – Every business organization has their expectations and needs to handle 100% of that to their services. However, in case there is a need for more products or to give out more than 100% of the expected service, your business should be able to handle that. That is what all excellent businesses have that others don’t. Small businesses that can handle those types of expectations and are able to deliver to their customers have the opportunities of becoming large corporations.

4. Employee Promotion – Quality businesses develop their employees’ talents rather than hiring new ones every year or so. If you want to build a good relationship with your teammates, you need to stick with them and expand their knowledge about the trade. This will also save time in hiring and training new employees. If you trust your current employees and improve their skills, it will be a plus for your business in the long run.

5. Celebrate Victories – Include everyone in your business when celebrating your victories and successes. This will motivate your employees to work harder and better to gain more excellence and achievements in the future.

Building an excellent small business is all about developing your habits. Whether you’re the head of the team or an employee, taking a big part in the management team is important for the success of the business.