What one business owner did after being rejected from a bank loan
One of our customers, who had been in the swim wear business for six years was fast approaching $3 million in annual sales. He had been profitable since for the last few years, with margins that ran between 10 and 15 percent. But the business was highly seasonal, leaving the owner scrambling for cash in the off-season when he needed to place orders.
Working with an executive coach in 2013, the business owner developed a plan to diversify the store’s offerings beyond swimwear and tap into promising markets like Australia and Europe. To execute the plan, he needed to stock up on jewelry and other accessories, and he needed to hire more employees — all of which would require money.
He first sought a bank loan but was rejected for lack of collateral. Then he did what many small-business owners have done since the recession: He turned to a merchant cash advance provider, a type of alternative lender that advances cash quickly in return for a share of future sales, extracted daily from the borrower’s credit card receipts. With a merchant cash advance of $100,000, for which he agreed to pay back over a 6 month term, he was able to stock up on new inventory and expand to new markets by late 2014. This story clearly illustrates why you should not give yourself any reasons why you can’t do something and how you should give yourself a reason why you can! Everyday counts toward your end goal. Don’t accept rejection. Believe in yourself and make things happen!
To learn more about Merchant Cash Advances visit www.1atlanticfunding.com/cashadvance/