Receiving additional funding for your small business is no longer complicated. Merchant cash advances are a good alternative as they provide needed capital that may not be available through traditional options such as banks etc.
Merchant Cash Advances are not subject to lending regulations because they are categorized as “factoring products”. Here a business sells a portion of its future receivables in exchange for upfront cash. Since this product is structured as a sale of future receivables, the provider buys these receivables at a discount, and gives a lump-sum advance to the merchant in return. A small, fixed payment or percentage of the merchant’s daily sales or revenue is remitted to repay the advance.
Here are some reasons when your small business should receive additional funding almost immediately:
1. When Opportunity Knocks.Staying competitive means taking advantage of opportunities to increase revenue. Turning away willing customers or an opportunity is a risk no business owner wants to take. Example, an auto repair shop could be tasked with dozens of projects at once and be forced to spend a large percentage of its assets on ordering parts. They must begin their work within the week in order fulfill their customer’s’ expectations but without additional funding, they would not be able to cover regular expenses like bills, rent, payroll, etc. Alternative business financing options like Merchant Cash Advances can help businesses to receive additional funding quickly to take advantage of opportunities.
2. When Your Business has suffered a Sudden Loss.Sudden losses can happen any time, whether an act of nature, a sudden accident etc. your business will need to make a way to make ends meet until things pick back up again. Merchant cash advances allow your business to receive additional funding quickly, which is often required during these types of emergencies.
3. When Your Business is Seasonal.Seasonal businesses perform best during certain times of the year, like the summer or holidays. In order to take advantage of the busy season, businesses must make a series of investments in the previous season such as excessive inventory, new hires, or a campaign advertising new releases or offers. If a seasonal business doesn’t allot ample time to prepare for the busy season, the performance it relies on to balance out cash flow for the year can get jeopardized. Merchant cash advances allow seasonal businesses to be ready when the busy season arrives.
4. When Your Business Needs an Amount that is too small or too large for traditional banks.Banks have a minimum and a maximum that they are willing to lend to businesses. Most merchant cash advances are flexible when it comes to the amount your business may need, and in many cases your business can even qualify for multiple advances to cover the costs.
Merchant cash advances are very useful, and they are often overlooked despite the value that they offer. If your business deals with any of the above issues merchant cash advances can smooth out cash flow, stabilize your business, or just offer you the help that you need to run your company.