Use Merchant Cash Advances to Grow Your Small Business
Every business could use some extra cash, but small businesses, in particular, can struggle with poor cash flow. If you have looming expenses or stagnant sales and are desperately waiting for your payday, consider using a merchant cash advance to bolster your working capital and help your small business thrive where others fail.
What Is a Cash Advance?
Unlike a loan or line of credit, a cash advance uses your own sales and simply gives you your income earlier. If you take credit card payments at your storefront or online store, you’ll usually have a solid prediction of the amount you’ll be receiving. Merchant cash advances are providing to businesses with reasonably stable sales to offer them their payment ahead of sales.
Of course, you’ll receive less than the full amount as an advance. However, you’ll typically pay less than the interest on a credit card or other line of credit. Some advances offer a flat fee, while others charge a percentage of your loan amount.
Because the amount is based on your predicted sales, this type of financing is more flexible and easy to receive than traditional bank loans. Whether you have a lower credit score, short financial history or another area that can cause you to be denied for a traditional bank loan, you can still apply for a cash advance.
Benefits of Merchant Cash Advances
Once you choose this dynamic financial package, you’ll be able to enjoy a wide range of financial flexibility. Use your advance to purchase the products you need to increase your sales or use it to reinvest in your business through marketing and expanding your services or product offerings.
Expand your business by hiring new employees. You may struggle to earn enough to keep up with payroll as your business slowly expands or you encounter a slow season, but a cash advance can allow you to keep your employees working hard while still making timely payroll payments.
Some businesses are even able to open a second location using their merchant cash advance. Whether you need a large amount advanced or a small amount, you can control the loan amount. Be sure you understand the terms and conditions that apply to your advance, as these can vary between loan providers.
Don’t let a lack of working capital keep your business from thriving. Discover how you can use a merchant cash advance to leverage your income. Pay your bills on time, invest in your business and keep your small business afloat as you compete in your industry.