With an A+ rating from the Better Business Bureau, Quikstone Capital Solutions has been the trusted funding partner of more than 10,000 businesses, providing hundreds of millions of dollars in working capital to grow their businesses.
Topics: Funding Your Business
In the wake of Hurricane Harvey and the impending United States landfall of Hurricane Irma, Quikstone Capital Solutions encourages everyone to heed local warnings and remember your safety is the first priority.
We originally published this emergency preparedness blog on August 15, 2015.
Everyone wants to believe that emergencies will never happen to them and their businesses, but the fact is, emergencies like floods, fires, earthquakes, hurricanes and other natural disasters can put their businesses at risk whether they want to believe it or not. Being prepared for emergencies may seem like a lot of work, but it could be difference between being forced to shut the business down for an extended period of time or possibly even for good.
Topics: Funding Your Business
Jason has been with Sterling since January 2012. He was born and raised in Buffalo, NY but moved to Florida in late 2009 to escape the snowy winters. He currently lives in Clearwater, FL.
Prior to moving to Florida, Jason earned is Associates of Science Degree in Business Administration. He also worked in varying sales environments and attended sales training. His focus has always been mostly toward financial products, though. Initially, Jason was hired by our sister company, Sterling Payment Technologies to work with merchants on their credit card processing. It just so happened that a sales position came open with Quikstone Capital Solutions and the match was made.
While in rare cases it makes sense to use a business cash advance for monthly cash flow needs (such as when waiting for a large payment or contract to be processed), it is usually necessary to use these cash advances to make more money for the business.
How Business Cash Advances Work
A business cash advance is a purchase of future credit card sales. The provider gives the business a percentage of its projected future sales up front, then takes a percentage of those sales each day until the amount, plus fees, is satisfied. For instance, if projected sales for a gift basket business are 20,000 per month, and they take a cash advance of 20% of that amount over 6 months, they would get $24,000 up front, then pay out a percentage of their gross receipts each day until the $24,000, plus fees, is paid.
Because of the fees paid, it doesn't benefit a business to take a business cash advance unless they can use it to make enough money to cover the fees, plus make a profit. Earnings that are level will not give the business enough cash flow to cover the fees paid; therefore, they will end up worse off after paying back the cash advance amount and fees.
Business Activities With Positive ROI
Some business activities are more likely to generate positive ROI (return on investment) than others. Here are some possible ways to use a business cash advance to make more money:
-Expand your retail space and add additional inventory (or add to your office space if you need to hire more sales staff, or add seats to your restaurant).
-Upgrade your equipment so that it can produce more or do more for the business in less time. Do this only if the increased efficiency will translate into more profit within a few months.
-Purchase additional inventory which can generate a profit within several months over and above the cash advance fee.
-Replace broken equipment without which your business can't generate income, if the profit is sufficient to cover the advance fee and still meet the business's needs.
Calculating the ROI of a Business Cash Advance
To calculate the ROI of a business cash advance, simply subtract the total profit you will make from investing the cash advance from the total amount of the cash advance, including the fee. You can calculate the total profit on a yearly basis, but keep in mind that the ROI may be much higher if the business continues to generate higher profits in future years as a result of the investment.
Quikstone Capital Solutions provides business cash advances to help businesses grow and increase their profits.
There are times in the life of your business where you just need some quick cash to keep going. Your cash crunch could be caused by an unexpected slow period that puts you behind on rent and invoices. Maybe it's a piece of equipment that your business needs in order to function. Sometimes it happens when an essential employee suddenly quits and you need to hire expensive temporary help until you can replace the employee.