Making Your Business Stronger Than Ever With a Merchant Cash Advance

Posted by Karen Erdelac on May 9, 2016

Making Your Business Stronger Than Ever With a Merchant Cash AdvanceWhether your business is currently strong or it could use some help to become stronger, merchant cash advances are structured to make larger amounts of cash accessible so that business goals can be accomplished.
A merchant cash advance is not a loan, it is a purchase of future credit card sales.

 Because the main criterion for such an advance is a history of strong credit card sales and not credit rating or collateral, it opens up opportunities to business owners who may not qualify for traditional financing. An additional bonus: it's fast cash. Most advances are disbursed in a week or less. 

Making Businesses Stronger

Although some businesses use cash advances to get themselves out of a financial jam, this is not really the best use of the product. Since there are fees involved, it could lead to a downward spiral where owners go deeper and deeper into the red by taking repeated advances. This happens most often when the business isn't quite viable to begin with, and owners don't take the necessary steps to adjust their business plan so that growth can occur.

Many cash advance providers (including Quikstone Capital Solutions) have adopted safeguards to ensure that businesses don't get further behind as a result of getting one or more advances. By approaching the advances as more of a partnership, providers can spot potential trouble and address it.

Using a merchant cash advance to invest in an aspect of the business that will yield a positive return is the best course of action. At the end of the repayment period, the business will be in a much stronger position than before and will be poised for continued growth.

Some potential investments for which a merchant cash advance may be helpful are as follows:

  • Purchasing equipment that will increase production or produce a higher quality product (which can then be sold for more).
  •  Purchasing additional space and inventory, if sales are growing fast enough to support this action.

  •  Implementing a marketing campaign with proven ROI. Do your research and be sure your marketing will yield results before signing up.

  • Hiring more help, if sales are strong and you will be able to use the additional time to make more money.

Great Expectations

Making Your Business Stronger Than Ever With a Merchant Cash AdvanceFor businesses that are already strong, having access to a lump sum of cash up front may allow them to reach their goals faster and implement their business plans to a greater extent. What was once a long shot, pie-in-the-sky dream becomes doable and reachable when the cash is available to fund those goals.

For businesses that are facing struggles, merchant cash advances can provide them a leg up to more solid footing, but owners are advised to carefully consider the business's weaknesses so that they don't become an impediment to future growth.

Are you interested in learning more about merchant cash advances? Apply now to open a dialogue with your new partner in capital, Quikstone Capital Solutions.

Apply Now

 

Topics: Grow Your Business