Only 50% of Small Business Will Survive

Only Half Survive

Our economy is in bad shape. We live and work in a recession that economists still debate about when it will end. In past recessions small businesses led the way for the economy to bounce back and grow strong again. Small businesses employ more American workers than large firms, making up over 99% of the country's employers. But small businesses are getting hit hard in this recession as the changing economy makes it hard to adapt. Only 50% of small businesses will survive to see their fifth year in business. One of the greatest challenges directly linked to the failure of small businesses now is lack of funding. However; a relatively new way to fund businesses that has been around for the past decade, called a Merchant Cash Advance, is proving to be a shining light.

A Changing Economy

The economy has changed and it has caused a domino effect across most industries. Consumers are spending less and shopping more carefully. Banks has severely tightened restrictions on lending to small businesses. Merchants have to get creative to avoid being one of the nearly 50% of business owners to witness the end of their livelihood. But with the tightening of the lending industry, merchants can't get the funding they need to adapt and improve their business to work in this age of financial hardship. So many businesses are turning to Merchant Cash Advance firms like Fastpoint Financial to get the cash they need. A Merchant Cash Advance is not a loan, so it is not hindered by the restrictions imposed on the lending industry.

Better Than a Loan

With a traditional business loan, the applicant has to go through a rigorous approval process lasting up to several months. Fastpoint Financial's application process is far simpler, approval comes in days, and the restrictions of a loan don't apply to an advance. With a small business loan a merchant has to pay an exact amount each month without regard to how the business is doing. With a Merchant Cash Advance a small percentage of credit and debit card transactions is collected as accounts are settled. It is an automated process that the merchant doesn't have to deal with, and because the withholdings are a percentage of transactions, the amount collected is directly related to the business' performance. Once the advance is paid off, which often happens in under a year, that's it. A Merchant Cash Advance really is that simple.

Contact Us Now

If this recession is to turn around, it needs to be because of the strength of the nation's small businesses. Without adequate funding, though, businesses will continue to struggle and we won't see the survival rates improve. A Merchant Cash Advance from Fastpoint Financial can help provide business owners with the working capital they need to adapt, improve, and roll with the punches. A quick call to Fastpoint Financial can be the difference that decides whether a business will be part of the half that survive at least five years.