There has been a lot of debate lately about which funding option is the better choice. The answer depends on your needs and circumstances.

Business loans

Business loans are the first choice for most business owners who are looking for additional working capital. There are some definite advantages to going through the bank. The clear advantage is cost. Bank loans cost less and give you a longer period to pay it back. Another thing they have going for them is trust. Many banks have been around for decades and have built a solid reputation. Most people prefer doing business with someone they have heard of before.

On the downside; getting a bank loan is very difficult. If your credit is less than perfect, it becomes even more difficult. Another downside to going through a bank is that it generally takes several weeks to get funded. For businesses who need money in a hurry; this can have very negative effects.

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Most people know that merchant loans are an alternative method of business financing for owners of retail and/or service-oriented businesses. They know that merchant loans are easy to qualify for and they understand that they come with a flexible repayment procedure that goes with the flow of a business’s sales.

Merchant Loans Can Be Renewed Multiple Times

Once a merchant applies for an advance, he/she can continue to take advantage of the business loan alternative. After the initial application, small business owners can renew their funds without having to submit merchant statements, voided checks, business leases and/or additional applications. They can receive their funds in 24 to 48 hours. Merchants usually become eligible to renew their funds about 3 to 4 months into an advance. They may choose to renew the advances as many times as they wish. But a few little know facts still remain.

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