How Small Business Funding Kick Starts Side-Hustle Startups

//How Small Business Funding Kick Starts Side-Hustle Startups
small business funding

Anyone who has started a small business in the last 10 years can tell you how difficult it is to obtain small business funding. Banks don’t lend like they once did, and SBA loans have stringent approval requirements. Also, not everyone has family with deep pockets or angel investors they can call on.

These facts are even more disheartening for small businesses in this age of DIY startups and would-be side hustle entrepreneurs. These companies, based on dreams and unique visions, might not translate well to a business prospectus or generate significant revenue out of the gate. Still, passion projects often turn into viable, even wildly successful, businesses.

Hair-brained ideas that proved the detractors wrong

  1. Kevin Plank drove up and down the east coast for a year selling his shirts out of his car before Under Armour took off.
  2. Silly Bandz might not have looked like a good business investment to many venture capitalists. That didn’t stop the company from exceeding an estimated $200 million in sales before the fad died.
  3. In 1976, Gary Ross Dahl came up with what was possibly the craziest idea to ever become a wildly successful business. Dahl’s Pet Rocks sold for $3.95 and went on to top $15 million in sales.
  4. Also in 1976, people probably thought Steve Wozniak, Steve Jobs, and Ronald Wayne somewhat insane to begin a business of designing and selling personal computers from Jobs’s parents’ garage. Almost nobody owned a computer, and a sizable part of the population had never even seen one. Still, Apple now employs 132,000 people and, by revenue, is the 11th largest company in the world.

These companies having become more successful than anyone ever thought they would, except for their founders perhaps. Those companies might have found it difficult to fund themselves using traditional small business funding methods if they started up today. All of them might have found merchant cash advances useful in staying afloat during that time between dream and reality.

Nobody is saying that your DIY dream company or side hustle is going to be the next Apple Computers. It may never get a chance, however, if you must rely on traditional lenders.

Some Advantages of to small business funding

Credit score not a factor

Merchant cash advances are based on your business’s receivables and deducted from future sales. This means credit standing and FICO scores are not a factor.

Cash comes quickly

It can take as long as two months to get the money with a bank or SBA loan. With the implementation of algorithm-based underwriting, merchant cash advances can be approved in less than an hour. The money will be in your hand in no more than two days.

No collateral

As the only required collateral is future earnings, you get the cash without risking losing anything you own.

Conclusion

Small business funding can be especially difficult for those who base their businesses on side hustles and DIY ideas. Merchant cash advances can prove quite helpful in navigating the terrain. Look into applying for one today.

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