Successful businesses are built on wise decisions. How owners choose to treat their employees, market their goods and services, and spend their money has a great deal to do with their level of success.
When businesses need financing, merchant cash advances are an effective way for them to get the cash they may need without long term debt and without needing collateral or a high credit rating. Merchant cash advances aren't loans, they are a purchase of future earnings, so the usual requirements for loans aren't needed. Advances are repaid with a percentage of future earnings, based on credit card receipts.
Using Merchant Cash Wisely
Unlike many loans, merchant cash advances don't come with requirements to spend the money in any certain way. Spending the cash carefully is important if you want to benefit your business, though. Here are some wise ways to use your cash advance so that you come out ahead.
1) To expand your business.
Using advance money to expand your business is wise because an expanded business will bring in more revenue to cover the cost of the advance and fees. Using money to make money is always wise, and when the money is an advance that has to be repaid, it makes even more sense to use it to grow your market share and bring in even more money.
2) To purchase large items needed to run the business.
For large items like restaurant kitchen equipment or work vehicles, it could take years to save up enough money to purchase the item needed. For equipment that is vital to the running of the business, it isn't possible to wait a long time to buy it. Using a merchant cash advance for large purchases allows the use of the item purchased to make money to repay the debt.
3) To purchase inventory that will bring a good return.
Buying inventory takes working capital, since you usually need to pay for the inventory before you will have a chance to sell it. Using merchant cash for inventory that will then generate sales and profits is a wise decision for any business.
4) To advertise and market the business.
Marketing is yet another way to use funds that has the potential to bring in even more money for the business. Care should be taken, however, to use proven methods of advertising and marketing that will actually increase revenue.
Wise decisions with money lead to business success.
5) To prepare for (or deal with) emergencies.
If you know your business is generating sufficient revenue to cover the fees, it may be a good idea to have some money put aside so that you are ready for any emergencies that may occur. Even though merchant cash advances can be obtained very quickly, in times when money is needed immediately, it might be good to have the money already in reserve.
One advantage of merchant cash is that the debt incurred is short term rather than a years-long obligation. "Since the financial meltdown in 2008, many small business owners have become very debt averse," funding expert David Gilbert shared with Forbes Magazine. Merchant Cash advances allow businesses to get what they need and get out of debt quickly.
Quikstone Capital Solutions provides merchant cash advances for businesses that need working capital, money for improvements, or money to purchase needed equipment. Their application process is easy and convenient for busy business owners.
