Pet stores serve a unique niche in America's retail market. They are a necessity for the good health and happiness of our beloved best friends. The American Pet Products Manufacturers Association recently published that there are an estimated 77 Million plus dogs in the U.S. Excluding all other pets, it's safe to say that pet stores will not fee the woes of an economic decline. In January, 2008 CNN alluded to the fact that pet stores are a recession proof business.

So it comes as quite a shock that banks and traditional lenders have stepped away in recent years from one of the few sure things the economy has to offer. While the average family may be cutting down on expenses, pet supplies are not one of them. On the contrary, some research suggests that pet supplies may be in greater demand than supply can fill. 

Funding is certainly necessary to purchase inventory, advertise, and expand operations but banks are not there to fill the need. In recent years, pet shops have found a partner in Merchant Cash Advance providers. A Merchant Cash Advance is a method of financing that is repaid by allowing the funding provider to automatically withhold a portion of each card transaction processed up until the full balance is collected. There is no predetermined due date, late fees, or penalties that apply. Credit restrictions are so lax, and the approval process is so fast, it's clear why this funding product has really caught on.

Some consumers may have noticed their local pet shop adding extra stock or opening a second location not too far from the first one. These are probably shop owners that are taking advantage of the easy liquidity of a Merchant Cash Advance.

There are nearly 100 million cats in the country and all of them require our care. When a recession hits, our pets just don't go away. They will still be there. With traditional lenders and banks sitting on the sidelines,  it is thankful that pet shops have a powerful alternative source of capital.

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