Owning and operating a small business can be extremely rewarding but as a sole proprietor you are sure to face many challenges. Most people start their own business to be their own boss, support their family and be able to do what they love for a living. Starting your business can actually be one of the easier parts of the process. What comes as the biggest challenge for most owners is growing the business. A lack of working capital can be to blame for many businesses becoming stagnant and unable to evolve. Even with a savings plan in place, unexpected expenses such as equipment failures, rent increases and other emergency situations cause small business owners to spend their money simply to stay afloat. Many of these same owners lack the credit history or collateral to take out a bank loan to make improvements. Thankfully, there is an alternative that is available to a higher percentage of small business owners. Merchant cash advances have become one of the best ways to secure working capital and help your business grow. When used correctly a merchant cash advance can take your small business to the next level and help to prevent costly downtime.
What Makes MCA’s Different?
A merchant cash advance is much different from a bank loan. They are much easier to qualify for and have a far faster turnaround. Merchant cash advance lenders are able to offer a large sum of money as long as your business has a strong sales history. Rather than paying back a lump sum or making large month payments, repayment is made by a percentage of your daily credit card sales. Since the approval process is largely dependent on monthly sales, those with less than stellar credit are still able to qualify. Unlike bank loans, merchant cash advances can be taken out for smaller expenses which can allow business owners not go into more debt than they need. They also have a faster repayment schedule than bank loans which helps you avoid exorbitant interest costs. Being able to make equipment purchases and renovations without having to worry about paying it back for the next 20 years provides owners with the peace of mind that what they make in the future will be theirs.
What Can MCA’s Be Used For?
Perhaps the best part about merchant cash advances is that they can be used for anything. When applying for a bank loan, what you plan to use the money for can significantly influence your approval. Merchant cash advance lenders recognize that there’s a good chance you know what your business needs and there may be many separate things you need to use your advance on. Making renovations to your restaurant or store front is a great way to use an advance and can dramatically increase your profits in the long run. Being able to purchase newer and more energy efficient equipment can also be a boost to the bottom line. If you happen to hit a slow period in the life of your business, a merchant cash advance is fast enough to help you cover expenses such as utility bills, rent and even payroll. This flexibility makes merchant cash advances far more versatile than bank loans.
Who To Turn To?
When looking into a merchant cash advance lender, you’ll want to seek out a lender that is not only reputable, but also has experience lending within your industry. Lenders that are familiar with your business will be able to provide you with valuable insights that may help you to use your funding more to your advantage. They will also be able to let you know what to expect and ensure you don’t have any issues repaying. Quikstone Capital Solutions has history working with several business models including restaurants, specialty retail, bakeries and many more. Consider a merchant cash advance to help your business dreams come true.
