So you've done some research, and you've decided that a business cash advance may help your company get to the next level. An infusion of cash can be useful for expanding your business, marketing to draw in new customers, or boosting production of the inventory you create. You're ready to apply for an advance, but you wonder if there's anything you need to do to prepare yourself and your business for a sudden boost in cash flow.
Are You Ready?
Being prepared for the infusion of cash an advance brings will help you make the best use of those funds and maximize the benefit for your business. Here are some things you should do to prepare for getting a business cash advance. Just be aware that you won't have much time to get ready, since it usually only takes a week or two to get your funds once you apply.
Review Your Business Plan
Businesses often change over time. The business plan you wrote when you started your company may not apply to current business conditions. It is beneficial to update your business plan regularly -- and before getting a cash advance is the perfect time to be sure you know your goals and how you want to achieve them.
Assess Current Finances
You have to know where you are before you can move forward. It's difficult to make progress if you don't have a grasp on your business finances. If you need to hire help to get a full picture of where you stand, you should do so. A professional may be able to offer you helpful advice on how to grow faster and better.
Cut Expenses Where Possible
Most businesses waste money somewhere, and you can optimize the impact of a business cash advance by streamlining to cut out any waste you can. The more you can cut, the more cash you will free up to make your plan work in the best possible way. Just be sure not to cut so much that you can't function well; having the resources you need in order to grow is important, too.
Prepare For Automatic Payments
Business cash advances are repaid with a set percentage of your daily credit card sales, so you should take a look at your operating budget and cash flow needs to ensure you can still make ends meet while making payments. One positive aspect of payments that are a percentage of daily sales is that you pay less on slower sales days.
Put Plans In Motion
It isn't wise to actually spend money before your advance is approved, but you can begin to set the gears in place so that they can start turning quickly once the advance becomes a reality. If you want to add staff, for instance, you may want to start the interview process (but don't make any job offers until you have the money in hand). If you want to expand, you may want to start looking for a larger space or research new inventory sources before you get the advance so that you are ready to go as soon as it comes through.
Don't Get Ahead Of Yourself
There are some circumstances in which business cash advances aren't approved, such as businesses that haven't been operating long enough or that don't have a steady record of reliable sales. Business cash advance providers may not be heavily regulated, but that doesn't mean that they provide advances to businesses that don't have a reasonable chance of paying them back.
In many cases small business owners lack the credit or collateral to access the money needed to remain flexible. Quikstone Capital Solutions provides fast cash for businesses. A merchant cash advance from Quikstone Capital Solutions is a business loan alternative that can help your business thrive and prosper, whether you need cash to buy equipment, cash to renovate or expand, cash to purchase inventory, cash to advertise or cash for emergencies. Quikstone Capital Solutions can help provide you with the business capital you need.
