Merchant Cash Advance

Small Business in Danger of Being Eaten Alive by Bigger Ventures

Ventures that start out strong eventually lose out to big sharks, merchants encouraged to check out other options for finding capital.

Here's where Merchant Cash Advance comes in.

In an entrepreneurial study conducted by a group of newly graduated business students, it was found that 60% of small businesses fold up due to lack of funding. According to the report, these ventures start out strong and often with marketable products or services. The problem lies in the “ability to keep up with competition from larger and stronger competition.” 

Can’t keep up

The research cites several factors that contribute to the growth and stability of a business venture. These are: advertising, the opening of new locations, equipment or inventory purchases and renovation/ remodeling. According to Mark 34, a small business owner, their gift shop business had to close down after only a year because some of those factors weren’t met adequately. “Our gift shop went off on a good start. Business was not booming but we had some regular customers. The problem started when we tried our hand at advertising. The campaign not as good as we had expected but we ended up blowing a big part of our budget on the cost.”

Learn and move on

The gift shop tried to get a business loan from their bank but because of credit run up by the opening of their shop, they weren’t deemed as good candidates. “I never really got to get back on my feet after the advertising episode. My plans to remodel a part of the gift shop into a café’ never materialized because I never got the funding I was hoping for.” Mark believes that there is a lesson to be learned from the experience, “This is not the end of it. I will definitely be more cautious about my business decisions later on. Now I just need to learn from my mistakes and move on.”

Protect your business

Jane, a small business owner also ran into some trouble with her cupcake bake and deliver service venture. “I put my heart and passion into this business. I sold my car, my stock shares and other personal belongings to be able to raise a capital for my cupcake business. In one year, I lost all my clients to a bigger and fancier cupcake place. All because they had the extra budget to run ads and do marketing and I was running low because I had just renovated. It is unbelievable. Now I am starting from scratch. But I have faith. I’m not giving up my cupcakes. This is my baby.” 

Merchant cash advance to the rescue

The report shows that most small business owners eventually lose out to bigger establishments because of little to no loans from banks and credit companies. Because they don’t have the capital to put up a fight, they have no choice but to bow out early. For advice on how your business can obtain funding for your business fast, without the need for application fees or a good credit report, visit a merchant cash advance agent near you.