If you’re in need of quick, working capital, your best option may be a merchant cash advance. Merchant cash advances are very easy to apply for. Unlike applying for a small business loan, you won’t spend all of your time sorting through documents and providing business history. In addition, you will hear back in as little as 72 hours – if not sooner. The advance is then repaid by agreeing to allow a certain percentage of your future credit card sales to be deducted until the amount is repaid in full. During months when credit card sales are higher, you will pay more. During months when credit card sales are lower, you will pay less. Ultimately, this provides the merchant with flexibility.
There are so many situations in which a merchant cash advance can prove to be helpful. Consider the following 8 ways a cash advance can provide flexibility, so your business can take advantage of opportunities and prepare for changes:
- Purchasing New Equipment. For every business, there will come a point in time where it is necessary to purchase new pieces of equipment. If you do not have the funds, however, this can prove to be a real challenge. A merchant cash advance can supply the funds you need to purchase computers, vehicles, machinery and whatever else your business may need.
- Taking Care of Unexpected Expenses. Flexibility is key for any business. Anything can go wrong: production breakdowns, slow sales, theft, natural disasters and other scenarios that are completely out of your control. These unexpected costs don’t have to be crippling for your business. A merchant cash advance can provide the help your business needs to overcome any challenges that arise.
- Boosting Inventory. Maintaining inventory levels is crucial for any business. A sale can’t be made if there is no inventory to supply the customer with. A merchant cash advance can help you keep your inventory stocks high and cover the costs it takes to do so.
- Covering Payroll. Any number of things can contribute to a short cash flow – a slow month in sales, customers’ credit card payments failing to go through, etc. Whatever the case may be, you still have to pay your employees. If you find yourself in a tight situation, a merchant cash advance can help you when you need a little extra to cover your payroll.
- Taking Advantage of Opportunities. Unfortunately, opportunities can disappear just as quickly as they appear. When an opportunity comes your way, you need to be able to capitalize on it as soon as it presents itself – this requires readily available funds. A merchant cash advance can help you access cash quickly so you can take advantage of each and every opportunity.
- Funding a Marketing Campaign. Customers are a business’ most important asset. In order to attract customers, marketing is required. As the saying goes, in order to make money, you have to spend money. To fill in the gap until those sales start rolling in, you can boost your marketing campaign with the funds a merchant cash advance provides.
- Expanding Your Business. Even if your business is booming and you want to expand, the costs involved in enlarging or renovating your current space may still be out of your reach. A merchant cash advance provides the funds you need quickly so you can expand your establishment.
If you’re in need of fast funding, consider applying for a merchant cash advance with 1st American Merchant Funding. Approval is based on your business’ performance, rather than personal credit, time in business or financials. In addition, the application process is fast, simple and hassle-free. Contact FAM today to learn more about how a merchant cash advance can help your business.