You saved two-thirds of every paycheck that you brought in during high school, and you ate a ton of ramen noodles while you were working your way through college. Why? Because you had a dream of opening your own fashion boutique once you finished your degree in design. You would sit up late at night, sketching out your designs, and in between classes and heading to your own job, you were busy finding ways to get them shown off in other stores.
Once you graduated, and some of your designs had found their way onto shelves in clothing stores – and you found that people were buying them – you took the leap and opened that store of your very own. You hired a fairly small sales staff to keep your overhead low, and over the past two years, you’ve built up a small but devoted customer following, and you’ve found that your revenues have increased by slow but steady amounts.
Your location is not bad, but it’s not ideal. It’s about six blocks away from where gentrification is happening. So the people who know where to find you can come to your store, but you’re confident that if you moved just a little bit closer to the streets where people walk up and down on Saturdays and Sundays, looking for places to spend their money, your business would really take off. You’ve heard of another clothier moving out of a space that would be perfect for you.
Here’s the problem – you’ve done well, but not well enough to handle a rent that would be about double what you’re paying now. You’d have to hire a few more salespeople, and you’d have to boost your inventory a bit in order to make the store pop. You’d also have to invest a little more in displays. You have some savings, but you’re not convinced that you have enough to make the jump without taking those savings down to the point where you would only have a couple of months in reserve.
So you go to the bank, and you apply for one of their small business loans. When they pull your credit, the first thing they ask you about is that car that you had repossessed while you were in college. You explain to them that you bought a car with your best friend, and that you had co-signed the loan so that she would get approval, but that she had promised to make the payments, but she simply hadn’t and you hadn’t had the money to make the payments yourself. In fact, you only found out about the situation when the car was gone and you got a letter demanding the full payment of the amount due in the mail.
The bank officer looks sympathetic, but you know you’re not getting this loan.
So how can you get a merchant capital loan in a situation like this?
You’re not alone in this situation. Small business owners just like you are the life blood of the local economy in Canada. Without you, a lot of the creative ideas bubbling around in people’s heads would never make it out into the world, and we’d be stuck buying our clothes on the basis of what Banana Republic, Old Navy and Wal-Mart think we ought to wear.
Merchant Business Funding – Merchant Lenders Are Standing By
The merchant cash advance is designed to help small business owners get access to the sort of money that they need to make major changes in their business even when traditional lenders won’t approve their applications for funding. So you can get as much as $100,000 from merchant lenders in some cases for the changes that you need to make to your business. In return, you pay a percentage of your credit and debit card sales each day until you pay back the principal plus interest and fees.
The best part about this loan is that you’re not adding another monthly payment to your budget. Instead, it just comes out of your sales. If you have a big day, you pay more. If you have a day where it’s mostly window shoppers coming in, then you just pay that percentage of what your card customers paid.
Curious? Need more merchant advance funding information? Contact Amansad Financial with an email or call today. We are ready to assist.