4 Ways to Use a Merchant Cash Advance

As a small business owner, you are almost guaranteed to face challenges of all sort on a regular basis. Depending on what industry you are working in, whether you are providing a service or a product, it is almost inevitable that you will experience some highs and lows along the way. It is understandable if at one time or another you need to borrow some extra cash to get things back on track.

A merchant cash advance could offer you a fast and easy option for freeing up working capital in a hurry. Unlike a small business funding option from a traditional banking institution, this type of commercial lending is secured based on your past and potential credit card sales. Regardless of whether your transactions are consistent or fluctuate from month to month, you could still qualify for funding.

You may own a seasonal business that generates a majority of your sales and profit during certain times of the year, which is not a problem. Approval for a merchant cash advance is based on a long-term evaluation of your transactions, not on a monthly or quarterly report. Depending on your sales volume, you could receive amounts from $5,000 to $500,000 within 24 to 72 hours.

Successful business owners don’t work for money, they make money work for them. While the needs of every business are unique, the one thing they all have in common is the need for working capital.

Check out a few ways other business owners have used the funds from a merchant cash advance to their advantage. 


Advertise Your Services or Products

Advertising can be expensive, but it is a key element in the success and growth of many types of businesses. Making sure your potential customers know where you are and what services you offer is essential to your survival, and these days the scope of advertising goes well beyond newspapers, flyers and media ads. Establishing a solid online presence is not only the most effective way of making your presence known on the local level, it could potentially generate business from customers across the globe. Many business owners either don't have the time, skill or desire to manage their online presence, so the funding from a merchant cash advance could cover the investment of hiring a firm to build their online presence.


Purchase Inventory

Having your shelves stocked with merchandise or a warehouse full of products available and ready for delivery is critical for the success of many businesses. That is why more and more business owners are using the funding from merchant cash advances to make sure they have the inventory they need to succeed.

Many businesses are operating on very tight margins to begin with, and a single delay in billing or a late invoice can leave them short on the capital they need to keep themselves stocked and ready for business. Customers have little patience for excuses and will turn to another provider if you can’t deliver the products they want. In an era where online reputation and reliability are critical for success, a merchant cash advance could help you keep your competitive edge.


Make Important Updates or Repairs

Out with the old, in with the new. That saying may not be relevant to every type of business, but eventually, every type of business will need some sort of updating or repairs. If you have been in business for quite some time and still have the original paint job on the walls, outdated and inefficient light fixtures, or obsolete or failing equipment, a merchant cash advance could fund these necessary changes.

Some people resist change, but in many circumstances not investing in modernizing certain elements of your operation could be costing you more than you think. Besides the recurring expenditure of repairs and higher utility costs, the outward appearance of your business could be driving away potential customers. In the world of business, you need to spend money to make money, and using a merchant cash advance to ensure your success going forward is never a bad investment.


Be Prepared with a Merchant Cash Advance

If you have a seasonal business and your sales fluctuate dramatically throughout the year, it is essential to be prepared for times when your cash flow is low. A merchant cash advance could provide you with the financial safety net you need to weather the slow times and prepare for the next big push. In fact, many seasonal business owners take advantage of the off-season to make important repairs or upgrades to their establishments, and a merchant cash advance could provide the working capital to make these important projects possible.