Numerous small #businesses across America are turning away from conventional methods of #financing, such as applying for bank loans, to establish or grow their business operations. Since the economic decline, banks and other financial institutions have also become very cautious of approving any kind of loan applied for by new or small businesses. This has prompted people to develop new and innovative ways of raising funds to finance their businesses. This is the reason alternative financing has emerged as a popular choice in the business industry for the past five years.
The main focus of the study was to determine whether participants would consider using alternative financing to get capital for their businesses
Out of curiosity, Merchant Cash USA, an alternative financing firm that offers cash advances to small and medium sized businesses, decided to carry out a study to ascertain the areas in the country that preferred using alternative financing methods over traditional methods when financing new businesses. A total of 3,150 entrepreneurs (both male and female) from different parts of the country participated in the survey. The main focus of the study was to determine whether participants would consider using alternative financing to get capital for their businesses. In this case, the capital raised through alternative financing methods could be used for different purposes such as business inventory, expansion, the hiring process or advertising.
The firm used email to get participants’ responses. The email was very simple and precise. Participants were required to give their first name, business name, city/state of residence, and their opinion on whether they would consider using alternative financing via a cash advance. Details about the terms of a cash advance were also provided.
From the results collected, 71 percent of the participants responded with a “yes” implying that they would consider using alternative financing to get funds for their businesses. From the percentage of participants who responded with a “yes”, Merchant Cash USA made a list of the cities that were more interested in using alternative financing. The results are shown below:
1. Minneapolis, MN – 93%
2. Las Vegas, NV – 88%
3. Detroit, MI – 85%
4. Albuquerque, NM – 80%
5. Indianapolis, IN – 72%
6. Austin, TX – 69%
7. St. Louis, MS – 64%
8. Wilmington, DE – 58%
9. Tucson, AZ – 55%
10. Durham, NC – 49%
71 percent of the participants responded with a “yes” implying that they would consider using alternative financing to get funds for their businesses.
Note: Featured Image Minneapolis | pixabay.com