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Your Home-based business can be small but your working capital need not be

Are you bitten by the business bug and want to start a home-based business? Are you tired of you doing mundane things at home and want to earn some extra money?The time is ripe for new products and services and that is the reason we see a spurt of startups and small businesses. While the picture seems rosy, the road is uphill and there are obstacles that need to be overcome.

Becoming an entrepreneur is a very attractive option and when you can do it from home, you are having best of both worlds. But what about finance? Getting finance for home based businesses is not easy. Many banks are unwilling to underwrite for these businesses and those that will consider your case require you to be ready with collateral, identification documents, credit scores and a concrete plan on how you will phase out.

Need for working capital

Loads of promising home based businesses shut shop because of lack of adequate finances. Banks and other institutions will look at credit scores before they release any funds. This limits the options to these bright entrepreneurs to stick it out before profits pour in. If you are one ofthem, read on how merchant cash advance companies like ours help you live your dream.

The only things that you need to focus on with us taking care of the financesis applying for the appropriate license for your kind of home-based business, getting the necessary know-how, researching the market and devising a plan and filing the taxes.

High-risk business

Home based business comes in the high-risk category and that is the reason you don’t secure traditional bank loans. The reason home based is high risk is because:

  • They are usually by first timers who know little or no knowledge of the market

  • The returns are not assured and most often they are not big enough to please the banks

  • Often they lack any kind of insurance.

  • Several of these businesses do not comply with the federal regulations and policies.

Merchant Cash Advance

There are other several bank loan alternatives that you can explore to finance your business. Merchant cash advance is immensely popular with small businesses and those looking for short term solution to their financial woes because it is simple easy and quick. With Merchant cash advance you get a lump sum money at the beginning. You can repay the advance back over a period. The repayment is based on a certain percentage of the credit card sales each day or on a weekly basis. The biggest advantage with MCA is that you get funds within a very short span and these funds can be used to manage a host of expenses.

Advantages of merchant cash advance

  • Fast and easy access to unsecured loans, unlike the traditional bank loans which come loaded with several loan terms and high interest rates.

  • When you start a home-based business you have little to no credit and that is one reason there are very limited business funding options. But with MCA your credits don’t matter. All Bad Credits are Okay and merchants with bad credits and high NSFs qualify for loans.

  • No lengthy and detailed application forms to be filled thereby keeping the paperwork to aminimum.

  • There is no need for a collateral.

  • Since there is no fixed payment each day, you needn’t worry about a chunk of money been taken from your account each day whether you had enough sales or not. BCA’s can seamlessly withdraw their share each day from your account based on the percentage of sales.

Do I pay more than the actual amount?

The final amount that you pay is calculated based on factor rate or buy rate which is normally between 1.2 to 1.4. Hence, the final settlement amount will be a product of the actual amount and the factor rate.

What can you do with the funds

  1. You can purchase new equipment like a cash register, billing software,packaging machine etc.

  2. Repairing or replacing existing machinery

  3. Buy inventory in bulk to get additional discounts and later sell the goods at a profit.

  4. Expand your business by launching a social media campaign, printing flyers and distributing near supermarkets, giving away freebies during the weekly flea market and so on.

Final words

Did you know that Hershey’s and Apple started as aHome-based business and today you can see the heights they have scaled. It is no doubt not a walk on a bed of roses to start your own home based business but then it is not impossible either. When there are several banks who do not take to underwriting for these high-risk businesses, merchant cash advance funders like us will help you build your business.

Feel free to talk to our managers; there is no obligation and pressure. We are happy to assist you in your endeavor to contribute to the American economy.


Citi Wide Merchant Funding

300 Carnegie Center
Princeton, NJ 08540

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