06 02 2016

06 02 2016

How microbusinesses can find working capital

Running a small business requires owners to seek new ways to find working capital to keep operations up and running. As the economy shifts, and technological changes allow individuals or a small group of workers to accomplish what might have previously required many people to do, companies can now thrive on the bare minimum. While innovative new processes and machinery allow businesses to remain small and agile, it also leaves them vulnerable to fickle market trends and other potential hurdles.

The growing microbusiness sector
Microbusinesses – defined as companies that employ five or fewer individuals – are a major part of the U.S. economy. In fact, microbusinesses account for 92 percent of commercial enterprises in the country, according to a recent survey by the Association for EnterpriseOpportunity. Collectively, in 2011, microbusinesses accounted for almost $5 trillion in economic impact and contributed $135.5 billion in tax and fee revenues to local, state and federal governments. In addition, they employed 41.3 million jobs, or 31 percent of all private sector workers. While they might be small enterprises, they play a large and important role in the economy.

Unfortunately, despite the staggering size of the microbusiness sector, institutional support does not necessarily align with the unique needs of this market. The AEO survey discovered that 85 percent of owners at microbusinesses say they think more resources, such as protection against lost income or better access to health care, would give them the tools they need to truly thrive.

Further, the respondents stated that the microbusiness sector is becoming increasingly competitive as more people leave their positions and become contractors and small business owners. As competition in this sector heats up, owners at companies – whether they’re micro-, small- or medium-sized – can gain a leg up on their peers by utilizing alternative lenders to get the crucial capital they need when they need it most.

Using all the resources available
Alternative lending provides extensive benefits for these types of enterprises, allowing them to gain access to a wide range of funding options. For companies that meet a minimum amount of annual revenue – usually $100,000  owners can easily obtain a small business or working capital loan with no pledge of personal assets.

Often, within 24 hours of applying, owners working with an alternative lender can supplement cash flows that have dried up or inject capital into their accounts to bridge periods of unexpected slowdowns or other type of business volatility. Further, according to a survey by Invoice2Go, 67 percent of small businesses said inconsistent cash flow/ earnings was their top concern. When owners have to spend all their time worrying about cash flow issues or whether they’ll have enough money to pay employees or purchase more inventory, they are not focusing on ways to grow the business.

With a simple application process and loans available for less than stellar credit or poor FICO scores, nearly any microbusiness with sufficient annual revenue can find the funding options necessary for long-term success.

Find Out How Much Funding You Qualify For

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Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the United States Government fight terrorism and money laundering, Federal law requires us to obtain, verify, and record information that identifies each person that opens an account. What this means for you: when you open an account, we will ask for your name, a street address, date of birth, and an identification number, such as a Social Security number, that Federal law requires us to obtain. We may also ask to see your driver's license or other identifying documents that will allow us to identify you.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121.  Funding amount and credit approval is subject to a full credit profile review.