How Small Business Owners Can Use a Merchant Cash Advance
When you apply for a merchant cash advance, you can get immediate funding to fulfill a business need, in exchange for selling an alternative lender some percentage of your future credit card sales. This can be a huge benefit to your small business, because approval rates are much higher than they would be from a traditional bank, and the whole process is also much faster.
Another big advantage of a merchant cash advance is that you can use the funds for any business purpose whatsoever, whereas banks would require you to use it for a stated purpose. Here are some of the ways you can put a merchant cash advance to great use for your small business.
Recruiting and hiring can be very expensive and very time-consuming for a small business, and if you don’t have the funds to do these properly, you might end up settling for less than ideal employees. With adequate funding, you can conduct the whole hiring process meticulously, and end up with staffing that will add real value to your business.
Unless your small business is highly profitable, you might not be able to set aside funding that will allow you to grow. For instance, you may need a new facility, or some new equipment that you just can’t afford with your current revenue stream. With a merchant cash advance, you may be able to take those first few steps to set your business up for future growth.
Steady cash flow
Cash flow is critical to businesses for meeting expenses, managing payroll demands, purchasing inventory, and for all other daily operations. But when incoming revenues are inadequate to handle all these costs, there will be a cash flow gap that has to be addressed somehow. Bank loans are not usually an answer, because they take too long to process, and your cash flow needs are much more immediate.
Even good planning can’t always cover unanticipated expenses when they crop up, for instance equipment failure, a natural disaster, or even the sudden loss of a valued employee. Surprises like this might be handled if you have a good cash reserve, but if you don’t, then a merchant cash advance might be a good solution to the problem.
If you are interested in learning more about how you can use a merchant cash advance, we can help. Contact Growth Lending Group at 203-349-8584 to find out more about what we can do for you.