Merchant Cash Advance Blog

Flexibility can be a key factor in the finances of a business. The ability to be flexible in making financial decisions often helps businesses take advantage of opportunities that they might otherwise lose - opportunities that can increase their profit and ultimately lead to success. 

The day-to-day operations of many businesses don't lend themselves to flexibility. Many expenses are fixed even when income is variable. Bills must be paid in a timely manner for the continued functioning of the business. For many new and established businesses, flexibility isn't something that would be nice to have - it is essential.

Hiring the wrong individual for your company is costly. Last year, a CareerBuilder survey found that 42 percent of businesses said hiring the incorrect person cost the company at least $25,000, while 25% of businesses reported losing out on at least $50,000. 

Bad hires can even happen to the best of companies, whether they're renowned brands or Fortune 500 companies. The costs of making a bad hire can be exponential in both time and money. The related expenses can quickly and unexpectedly eat into business cash that is budgeted for other things. To avoid the costs of making bad hires, it may be necessary to invest in modern technologies and professionals with expertise and experience in hiring protocols. 

What is a merchant cash advance?

Contrary to popular belief, a merchant cash advance is not a loan. A Merchant Cash Advance gives businesses access to much-needed cash, and provides flexibility in repayment because repayment is usually based on your daily sales. If your business is slow you will pay less and when your business picks back up you will pay more. This helps regulate your cash flow and allows you to repay based on your success.

 

Eight out of ten businesses fail within their first 18 months. The statistic suggests entrepreneurs need to do more planning before they pour tens of thousands of dollars - or millions of dollars - into a business endeavor. 

Cutting Corners Doesn't Grow Your Business 

In order to increase cash flow and improve overall revenues, small business owners will sometimes attempt to avoid spending while also reducing operating expenses. Since the financial crisis, the general movement for United States businesses have been to scale back on their operations and minimize business costs. However, there can be long term consequences as a result.

At the time, this may seem like a good idea for a lot of entrepreneurs, it is actually counterintuitive and diminishes the value of the business. When owning and operating a small business, the brand cannot grow if you refuse to spend money.