Small Business

Microbusiness Owners Use Their Personal Funding to Grow

Microbusiness

The majority of microbusiness owners rely on their personal savings as the lead source of funding for their businesses. Merchant cash advance brokers can help microbusiness owners get the right type of financing for their businesses. If you’re interested in small business funding options, just read below.

Funding Options for Microbusiness Owners

According to a 2016 Small Business Credit Survey released by the Cleveland and Richmond Federal Reserve Banks, microbusinesses are less often approved for business financing than larger ones. That’s the reason why microbusinesses usually rely on the personal finances of their owners to secure funding.

Microbusinesses, which are defined as nonemployer firms and small firms under 4 employees, play an important role in the development of the country’s economy. These small firms, however, are less profitable as compared to larger ones. Therefore, they often have to struggle with financial hardships.

Financial challenges make some small business owners avoid applying for loans from large banks. Instead, they turn to alternative online lenders, which have gained enough popularity in recent years.

Alternative Online Lenders

Alternative online lenders provide great business financing opportunities for microbusiness owners. They enable small business owners to get easily approved for business funding so to grow or pursue new opportunities.

You, as a microbusiness owner, should consider turning to merchant cash advance brokers from reputable business funding providers. They can help you get access to the necessary working capital for your business without any challenges.

Other Popular Business Funding Sources for Microbusiness Owners

Alternative online lenders aren’t the only preferred option for small business funding. Research in the field shows that credit cards and money from family and friends are also among popular sources of funding for microbusinesses.

One of the studies revealed that less than 3% of US microbusiness owners rely on government loans, small business loans, or crowdfunding to meet the financial needs of their businesses.

According to a 2016 survey in the field, microbusinesses represented nearly 9 in 10 firms and about 34.9 million jobs in the United States. So, the vital role these businesses have in the nation’s economy is undeniable.

The majority of small business owners rely on their own bank accounts to keep their companies afloat. Traditional loans are less available for microbusiness owners. To get the necessary funds for your small business, turn to the right business funding provider in the industry.

Author Bio: Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best merchant cash advance brokers company, serving both traditional and high-risk Businesses.

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