One of the best features of a merchant cash advance is that you can use the money for whatever you deem necessary. Unlike a bank loan, what you plan to use the money for does not factor into approval. A merchant cash advance works much different from a traditional loan. It is basically a purchase of a portion of your future credit card transactions. The approval is less stringent and much faster as well. This allows you to get your money when you need it without having to wait until it’s possibly too late. Wondering how to use a merchant cash advance? Here are a few ideas to get you started.
Cash Flow
Over 42 percent of small businesses claim cash flow as one of their biggest needs. Having money on hand that can be used to benefit and grow your business is extremely important 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 the perfect fit when you need fast cash in a pinch.
Hiring Employees
The recruiting and hiring process can be a lengthy and expensive venture. Sometimes you may need to hire more employees to increase business, which may mean you don’t have the up-front capital to cover it. Ensuring that you have the necessary funds to make quality, well thought out hires can make or break your business. A merchant cash advance can be used as a means to build a productive team.
Renovations and Expansion
There comes a time in the life of any business where improvements are required. Renovating your current establishment or even expanding to a second location can be instrumental in the growth of your company. The money needed to make these types of improvements can be significant, however, without them your business could suffer. Consider a merchant cash advance to help your business expand and flourish.
Equipment
Updating equipment can improve the quality of your products as well as save you money if you choose to switch to energy efficient models. Equipment purchases are a great use of a merchant cash advance and can keep your infrastructure fully operational.
Bills
Every business will have a down month or year. If you’re in need of fast money to make payroll or to purchase inventory, a merchant cash advance can provide the money your company needs to ensure business doesn’t skip a beat.
Marketing and Advertising
If business has been slow or you’re just trying to expand your reach, it may be time to invest in a marketing and advertising campaign. Chances are you’re not an expert on these topics, and hiring a marketing agency can come at a significant cost. The return on investment for these campaigns can far outweigh the costs involved. If you don’t have the cash on hand to get the word out about your business or special promotions, a merchant cash advance could be just what you need.
How it Works
Merchant cash advances can offer businesses a significant amount of capital if they have a strong sales history. Those with credit ratings too low to get loans can still qualify for merchant cash advances. Repayment is a fixed percentage of daily sales, so when you have slower days, you pay less. If the merchant cash advance is put to good use, your sales should be significantly increased, and your profits will be larger going forward. It makes the cost of the merchant cash advance well worth it in the long run. Contact Quikstone Capital Solutions for a consultation on how your business can benefit from a merchant cash advance, or simply apply now by clicking the button below.
