Small Business Blog

In May of 2009, small business credit card provider Advanta Corporation announced that it would shut down roughly one million small business credit card accounts. The news is a sign of the times: economic conditions are taking a toll on small businesses and their lenders. If the profitability of small business lending continues to decline, small business owners will be increasingly challenged to locate the credit they need to fund expansions and special projects.

One option that’s becoming more popular for entrepreneurs and small business owners is the merchant cash advance. Merchant cash advance providers offer cash upfront in exchange for a piece of the business’ future sales. While this arrangement technically isn’t an extension of credit, it does generally function like an unsecured small business loan: the business obtains a lump sum of cash and repays it, along with a fee, over time. (continue reading…)