Starting a new business can be equally exciting and stressful. A lot of the stress can come from finding funding, as the majority of people take out a loan from a bank or family member to start their dream company. However, there are options outside of a bank or a well-off family member.
Many people have their businesses categorized as LLC, or Limited Liability Company, due to the ease of formation and taxation. With a LLC the owner or owners are protected from the financial penalties of a lawsuit, i.e., if the business were sued the potential payout would come from the business and not the owners’ personal funds. Even though formalizing a LLC is easy and affordable (though it can depend on the state you operate in), the majority of businesses will still need funding. Start-up funding is not cheap, and amounts can depend on the area of business you are in. For instance, stores will need funds for shelving, product, staff, cash registers, security camera, signage, and promotion. These costs can quickly add up. While it may seem like you can float by month-to-month that is simply not acceptable in business, as circumstances can quickly change. Even if you have funding left over after all of your initial inventory purchases, you may still need financial help.
While banks and well-off relatives are options for funding, not everyone has the access. Not everyone has a well-to-do uncle, and not everyone has the credit for a bank loan. In these cases, it is wise to turn to a merchant account processor, such as eMerchantBroker for a cash advance. These advances are processed quickly – at times, they are processed in as little as five days. eMerchantBroker’s program looks at your business’ total gross credit card processing revenue and advances you based on a 3-6 month average. Another option is their ACH Business Funding Program, which examines your monthly sales revenue based on the gross deposits in your checking account over a 4-month period. This is a popular business finance tool because there is no merchant account required.
Business funding can be tricky, even for the most seasoned LLC proprietor. For new LLC owners, it is wise to consider all of your options, from personal loans to merchant account funding programs. eMerchantBroker offers some of the most business-friendly advance programs. Before making any decision, please check out all of your options, as making the wrong decision can not only cost you your business, but also your personal finances.