May is National Small Business Month, and I thought it would be fitting to touch upon the small business community that we, the MCA industry, work with every day and the struggles they face. Last week, American Express OPEN® Small Business Monitor released their biannual survey on the mindset and struggles of those small business owners.
Some surprising details I noted were that only half of merchants planned on using capital investments over the next six months, even though their cash flow concerns rose over 5% in last two quarters. Small business owners listed an “uncertain economy” as their biggest concern for the coming months and they worried about long term debt. I truly believe this is where the merchant cash advance fits perfectly in the tool box of cash supply for small businesses.
We can help build the bridge for these businesses to reach their goals, without the hassles of traditional long term lending.
After working closely with these small businesses, we begin to see their distresses and struggles parallel throughout each industry. Payroll taxes, new equipment, raised overhead costs, and poor sales usually account for their day to day concerns. Double down on the fact that they are trying to keep up with constant advancements in technology and rapidly growing social media expectations, they get quickly overwhelmed when cash is tight. However, I find their overall optimism of long term success the most interesting, and it’s imperative to capitalize on this optimism with support.
The Federal Reserve suggests that the demands for small business loans are picking up, but it is obvious that traditional credit is still tight, and we know that most of these business owners are strapped for time. There is a huge audience for our business to expand and market our products as the easiest solution to the cash cushion these businesses need.
Question is… how do we continue to reach all of these potential merchants and markets? The merchant cash advance industry is finally getting a credible reputation in the finance world. Forbes magazine recently published an article featuring the growing popularity of the MCA, and how small businesses can benefit from this product, almost a complete 180 of its review five years ago.
As each MCA company grows and creates a positive reputation, we all grow as an industry…together. But as our popularity grows, however, so does our competition. We already know that Amazon, eBay, and Google are stepping into the market, and AMEX is looking to expand their short term financing portfolio. These big business industry leaders will help build our brand of finance and benefit our portfolios, but I also think it is fundamental that we market ourselves as the alternative to big business finance and identify ourselves with the small business owner. The MCA industry can be the most valuable, short term solution and be the key for small businesses to navigating this uncertain economy. Our future is bright.
By: Craig Hecker, CEO
Rapid Capital Funding
http://www.rapidcapitalfunding.com
Section Widget
Recent Forum Posts
