Merchant Cash Advance Blog

All too often small business owners begin major projects only to run out of available funds. This may be due to complications, poor planning or unexpected expenses. Regardless of the reason, it is important you take your projects to completion. Unfinished projects can hinder business operations, alienate staff and be detrimental to the customer experience. If cash flow is holding you back from settling unfinished business, a merchant cash advance may be right for you.

Many small business owners neglect to create a detailed business plan while others fail to update their original outline. This can be damaging to companies looking to excel in their niche and compete with larger organizations. Having a detailed plan and taking real steps to execute each aspect can make or break your business. Here we’ve outlined the necessary pieces to every business plan and why their inclusion is vital to small business success.

Many alternative lenders have come under fire for deceptive practices, but it is important to remember there are bad apples in every industry. What receives less publicity is the tremendous growth being sparked by reputable lenders. Merchant cash advances are not loans in the traditional sense. Instead, the provider is purchasing a portion of the business's future sales. The fee, which is usually about 20 to 25 percent of the amount, seems high. But consider a loan from a traditional bank, which is usually paid back over a period of 5 to 10 years or more, with interest compounded every year. At 8 percent interest per year, that money costs the business owner 30 to 60 percent of the amount they borrowed. Strictly based on finance charges along, merchant cash advances shine when compared with traditional bank loans. So what else do MCA’s offer small business owners? 

This year brings sweeping changes to our tax laws and small business owners should be aware of how they will affect them. While many people only think about taxes for a few days a year, small businesses need to be vigilant with accounting and tracking at all times and keep up with the latest changes.

When comparing the different types of small business funding, it’s clear the versatility of merchant cash advances set them apart from other alternatives. Here we’ve compared some of the major types of small business funding to determine the easiest and most efficient way of obtaining working capital.