How to Easily Secure Business Funding for Your Start-Up Business

Apr 28, 2014
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Already have a great concept for your small business but you’re wondering how to get it off the ground with minimal business funding? Sometimes all a small business needs is careful planning and a kick-start to get the ball rolling. When you’ve found a niche within a market with a good potential customer base delay will cost you. Here are some tips for getting your business up on its feet with less than $5000 in the bank.

Create an Efficient Business Plan

When you’re working with less than $5000 you need to have a well-crafted, efficient business plan. There will be no margin for error so you need to clearly identify your market, your target consumer base, and your projected revenue cycle. Be careful not to overlook details such as registering your business with the IRS and acquiring the appropriate permits and licenses from your local government unit. These may seem obvious, but they’re critical to keeping fees away and your business under-budget.

Build a Dedicated Team

The key word is dedicated. With so little capital in the bank if you don’t start creating profit quickly your coffers will empty quickly. You’ll need a team that is dedicated to working hard and capable of absorbing a thin period when your business is launching. If you’re concerned about having to lay off team members you don’t need and can’t afford anymore it might be wise to look at outsourcing and freelancers to help your business in those early days before you have stable profit and revenue.

Business Funding Alternatives

eMerchantBroker offers several business funding opportunities to give your small business the extra boost and financial flexibility it needs to get over the top of that first hill and onto greener pastures. The first methods is a merchant cash advance. A merchant cash advance is paying in advance for your future profit. Basically you are buying your future profit from EMB, and as long as do a minimum of $2500 per month through an open merchant account getting approved will be no problem.

The second business funding method EMB offers is the ACH Business Funding Program. The ACH program may be even easier to get approved for as it doesn’t require an open merchant account. It’s similar to a merchant cash advance except that the gross deposits in your checking account over a four month period determine how much of your future profit you can buy in advance.

These two approaches can be repaid by a percentage hold back and fixed daily payments. A percentage hold back is where you pay back the cash advance by a daily percentage of your credit card transactions. The fixed daily payments is simply a daily withdrawal from your checking account via ACH at a fixed rate.

Getting your business started on meager start-up cash may seem an impossibility but it’s easier than you think to turn $5000 into $250000. Preparation, an excellent business plan, dedicated team members, and financial flexibility can get your small business off the ground in no time at all.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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