For many businesses, a bank loan is not an option. For others, it also not their best option. More and more business owners are turning to high risk business loans like a merchant cash advance to access cash quickly, which also allows them to avoid restrictions on how they can spend their money. Here are six of the top ways business owners use a cash advance:
Boost Cash Flow
More than 42 percent of small businesses say that cash flow is their biggest challenge and their greatest need. Without sufficient cash flow, it will be difficult to cover day-to-day costs and grow your business. Just because your business is technically profitable does not mean you have enough cash on hand. A merchant cash advance can provide the cash flow flexibility your business needs to easily cover expenses and thrive.
Manage Unexpected Expenses
Unfortunately, unexpected expenses are part of running a business. Every company will experience their fair share. The biggest problem is that unexpected costs do not allow for the time it takes to apply for and receive a bank loan. A merchant cash advance, on the other hand, provides cash fast – in as little as 24 hours. The application itself takes just minutes to complete. This is just one of the many reasons this option has become so popular with merchants when they need to handle costly surprises.
Hire New Staff
Recruiting and hiring the right teams is a lengthy and expensive process. Making sure you have the right people at your side takes as long as it takes, which can quickly add up. If you’re a new business, you will need to hire staff to get your venture off the ground. If your expanding rapidly, you will need capital up-front to cover the cost of adding to your team to increase business. A cash advance can help you build a productive team when you need it most.
Upgrade Equipment
For some business types, updating equipment can help improve the quality of your products and save money. However, equipment upgrades can be a hefty cost to manage, especially if your business involves large pieces of machinery. A merchant cash advance is a great option for equipment purchases.
Pay Bills
Big costs like equipment and inventory are not the only expenses a cash advance can help you manage. Day-to-day expenses liking paying bills can also become overwhelming at times, especially when a business is just starting out. A cash advance can provide the money you need to ensure your business doesn’t skip a beat.
Fund Marketing Campaigns
Without a strong marketing campaign, your products and services will go unnoticed. Reaching and engaging with your audience takes time, research and content. Many new and small business owners simply do not have the time or knowledge to produce lots of valuable content for marketing purposes. A cash advance can help you hire an expert who can assist you in effectively targeting and engaging your audience.
To learn more about a merchant cash advance, get in touch with our team of experts at First American Merchant. Quickly secure the cash your business needs to thrive.