While the large companies and multinational corporations seek credit for special operations, small businesses, those who have just entered the business world, are short of finances and need capital to fund day-to-day operations. In the starting phase of a business, there are so many expenditures such as inventory, hiring staff, technology and equipment, etc… These entrepreneurs know how difficult it is to manage and operate a business when funds are low. They also need cash to make payroll, pay taxes, or to avoid defaulting on existing debt obligations.
For this reason, business owners really need to know about their best funding option. The two major funding options for small entrepreneurs are SBA loans and merchant cash advances. SBA loans are available to small businesses unable to get a business loan through normal lending channels with reasonable terms. The program operates through private-sector lenders who provide business loans guaranteed by SBA, the Small Business Administration. A merchant cash advance is a quick and easy business funding option without the need for collateral. MCA loans require no formalities and no credit checks since they are offered by private lenders. There is no involvement from any bank or other traditional loan provider.