When the bottom drops out of a business's cash flow, it's difficult to know where to turn. Merchant cash advances can provide businesses a way to keep things going while they work their way out of the slump.
Advantages of Using Merchant Cash Advances
With merchant cash advances, you can get money quickly, in as little as a few days, so you can take care of your obligations in a timely manner. Bank loans and other types of financing usually take a few weeks or even longer to complete the application process, which is often complex, and make a decision.
Another advantage of cash advances during a business slowdown is that repayment takes place on a daily basis and is based on a percentage of your sales. That way when sales are lower, the amount paid is also lower. When sales pick up again, your payments will increase.
And unlike bank loans with long repayment terms or investor funding that turns out to be permanent, merchant cash is repaid quickly, within 3 to 12 months in most cases, so you can get back to business as usual fast and without complications.
While using business cash to get through a summer slowdown or other seasonal slump, here are some suggestions fromWork-At-Home-Mom.com for ways to get businesses moving again:
--Market the business more. One way to increase business is to increase marketing efforts. Some low-cost ways to market the business include using Facebook or other social media and getting out in the community to boost word of mouth and name recognition. Doing giveaways or offering free samples can also increase your visibility without costing much money.
--Catch up on paperwork. Chances are when things speed up again, you won't have time for paperwork you are already behind on now. Use some of the extra time you have to get up to speed and even put systems in place to make it easier going forward.
--Learn new skills. Taking some downtime to learn more about your business and take your skills to the next level can make your profits soar going forward when you have more to offer than you did before.
--Follow up with former and existing customers. It is many times easier to get former customers to come back or existing customers to buy something else than it is to get new customers. When things are slower it is a great time to reach out to those customers with reminders, discounts or incentives for coming back.
--Upgrade equipment or renovate space. This can be risky when money is already tight, but if you see obvious business growth potential in making improvements, a slowdown is the best time to do them, since it will impact the fewest customers.
Quikstone Capital Solutions offers merchant cash advances to qualifying businesses to help them with all their business needs.
