Liquidity Through H. Capital Helps Your Small Business Stay Afloat

The economic downturn has created new opportunities for entrepreneurs who are willing to take risks to achieve their dreams. The biggest obstacle to growing a business is often finding the necessary financing to jump-start new ideas. Amir Landsman started H. Capital to address the growing need for small business financing and flexibility in the face of banks tightening their lending standards.

Small Businesses Continue to Struggle

Though credit is improving for small businesses, banks typically want to see a stellar credit history and conduct a lengthy review process before making a decision on funding. Traditional bank lenders are less likely to approve financing for companies without long-term performance records due to the inherent risk involved.

According to the Small Business Administration, approximately half of new businesses fail within their first five years. The lack of liquidity and funding for working capital to purchase equipment, cover employee salaries and pay utility bills has left many small businesses without answers. This creates a domino effect, as small businesses may need to allow more flexibility on receivables from their partners who are also going through a tough time. This means that even successful businesses can find themselves in a tight spot without any means of support.

Merchant Cash Advances Provide Liquidity

In the absence of bank lending, a merchant cash advance provides an alternative method for small businesses to obtain financing for current working capital as well as future growth. Companies like H. Capital provide this type of funding so that businesses can quickly get the capital they need to cover expenses for day-to-day operations—a helpful short-term solution as the economy slowly recovers.

The main difference between conventional bank lending and a merchant cash advance is that the small business does not need to provide collateral to receive the financing. Merchant cash advance providers instead offer liquidity based on expectations of future revenues or sales. Small businesses return the funds based on agreed repayment terms, such as a percentage of revenue or receivables during a given time period.

H. Capital Offers Quick Financing Solutions

H. Capital, one of the leading providers of merchant cash advances, was founded in 2007 by Amir Landsman in response to tightening credit conditions in his community and nationwide. The company has a proven track record of providing small businesses with quick and accessible working capital by offering a streamlined application process—92 percent of applicants are approved and funded within one business day.

H. Capital owner Landsman has experience working with small businesses and a personal understanding of the difficulties they face in obtaining financing. As the economy has struggled to find its footing, H. Capital has worked closely with local businesses to help them stay afloat and obtain the working capital they need through its revolutionary financing program.

Whether you have a thriving small business that is facing a cash crunch or a new idea that you would like to launch, consider contacting Amir Landsman at H. Capital to learn more about alternative financing solutions to help keep your entrepreneurial dreams alive.