Crowdfunding is all the rage, and you hear about a few select success stories where thousands of dollars are raised to support a cause, an idea, or a business. In reality, though, crowdfunding is much more difficult than it looks, whereas merchant cash advances are simple to get for qualified businesses. Here are some other ways MCAs are better than crowdfunding.
1. You don't need to be a marketing genius to get a merchant cash advance.
Most successful crowdfunding is a result of successful marketing, which requires a great deal of either time or luck to accomplish. Business owners are already working as many hours as they can to keep the business going; they usually don't have time to spend marketing a crowdfunding campaign on top of that. Merchant cash advances don't require that much time or marketing expertise - the application process is simple and can be completed in under an hour.
2. You can get your merchant cash advance in less than a week.
Sometimes you need funding right away to keep your business going and meet immediate needs. While most crowdfunding campaigns go on for weeks or months - the average campaign lasts 9 weeks, a merchant cash advance is disbursed quickly, in just a few days.
3. You can use a merchant cash advance in whatever way you see fit.
Most crowdfunding campaigns have a very specific purpose - to launch an invention or buy new equipment, for example. Using the funds differently than originally publicized may cause donors to be unhappy and bring bad publicity on your business. A merchant cash advance, on the other hand, gives you freedom to use it as you see fit. Priorities and needs can change quickly, and flexibility is important to allow businesses to respond to these changes in the best possible way.
4. You don't know how much crowdfunding will raise.
Sure, you set a goal for your crowdfunding campaign, but you really have no way of knowing if you will meet that goal. About 60% of crowdfunding campaigns don't meet their goal, and even fewer exceed it. Merchant cash advance providers give you an amount that you qualify for up front, so you know exactly what you will get.
5. MCAs are private.
When you crowdfund, you make the state of your business, and at least some of its plans public. Do you really want your business goals and the fact that you lack cash flow to be public knowledge? Merchant cash advances are private and don't require you to disclose any information about your business to the general public.
6. Crowdfunding will only be successful for certain business needs.
Let's face it: crowdfunding to buy a new copier or to fund your company's marketing campaign isn't likely to draw many donations. Most crowdfunding is for new inventions or for a cause - a charitable need that tugs on people's heartstrings. Merchant cash advances are perfect for investing in the things that will help your business grow, even if the needs are not glamorous enough to appeal to others.
Quikstone Capital Solutions provides merchant cash advances to qualified businesses, even if they don't have a compelling story or a new invention to peddle. Learn more how Quikstone Capital Solutions can help grow your business.
