As a small business owner, you are likely already aware of the challenges that can come with acquiring funding. With a fast and easy application process and much more lenient requirements for approval, a merchant cash advance can be just the thing to help you invest in and grow your business. However, some uses are better than others. Here we outline some of the best ways to use a merchant cash advance.

Cash Flow

Having money on hand that can be used to benefit and grow your business is essential in building and maintaining a successful company. A merchant cash advance can provide the cash flow flexibility your business needs to thrive.

Unexpected Expenses

Every company will experience unexpected expenses at some point. These expenses don’t allow for the time it takes to apply for and receive a bank loan. With a simple application process and a quick turnaround, a merchant cash advance is perfect when you need fast cash in a pinch.

Expansion

Expanding your business can come in many different forms, and the type of expansion you choose will largely depend on your market, competition, and company goals. This could include making improvements to your current location to accommodate more patrons, opening a second business location, or creating an ecommerce marketplace. Successful businesses can become stagnant when their storefront reaches a point where growth becomes impossible. At this time, it would be wise to expand into new markets. You will want to research the best possible expansion route by studying your target customer base and competition. Once you’ve decided on what type of expansion to implement, you will want to develop a detailed structure and plan to ensure success.

Inventory

One of the most significant expenses that small businesses generally have is purchasing inventory. Without the cash flow to buy in bulk, these expenses can be much higher than they should be. This could include purchasing seasonal items or things that are for everyday use. The potential savings from buying large quantities can far outweigh the payback costs of a merchant cash advance. If this is the case and you have the storage space to store additional inventory, it represents a great investment opportunity.

Marketing

The marketing world has changed drastically over the last decade with the influx of digital technology to help distribute and analyze your marketing initiatives. An investment in digital marketing technology, paid social advertising, and content creation has significantly boosted the reach and awareness of small businesses. Often small businesses lack the staff or infrastructure to carry out a well-organized and optimized marketing plan. In this case, it may be advantageous to invest in an outside marketing firm to develop and implement your campaigns. 

Quikstone has helped thousands of merchants grow their businesses with easy, fast, and flexible funding for their business needs. If you'd like to purchase new equipment, take advantage of special buying opportunities, hire additional staff, or expand or remodel and don't have the funds, we can help.