How Your Small Business Can Use a Merchant Cash Advance  

In some ways, a merchant cash advance (MCA) can be much more useful to your business than a traditional bank loan, especially since there are no constraints on how you spend the money when you receive an MCA. Approval is easier to obtain, and getting the cash on hand is generally much faster than it would be through a bank. A merchant cash advance does not even require collateral, because in this form of financing, an alternative lender would purchase a portion of your future credit card transactions, and they actually serve as collateral. Here are some ways that an MCA can help your business.

Staffing

The recruiting, interviewing, and background checking necessary for the hiring process can be a costly venture, and hiring the right personnel is not something you want to cut corners with. A merchant cash advance can help you conduct the process properly, so you end up with good people who can truly add value to your business.

Unanticipated expenses

Every company incurs unexpected costs and expenses, and if these become major, you simply won’t be able to react to them quickly with a bank loan. With the quick approval and turnaround time associated with an MCA, you’ll have the cash you need to handle the shortfall, and resume normal operations.

Pay bills and payroll

When revenues don’t come in as quickly as they should, you can be left with a cash flow gap that has to be filled somehow. Your own bills can’t wait, so you have to pay regardless of whether revenues are flowing in. Getting an MCA can be the perfect stopgap measure to pay your monthly bills or meet payroll demands when it’s necessary.

Marketing/Advertising

The return you get from a really good marketing and advertising campaign can totally justify the resources you invest, and that makes it well worth your while to get an MCA to fund your next advertising campaign.

Grow your business

If your business has been stuck in a zero-growth rut for some time, you may need to invest in renovation or expansion in order to promote growth. Ordinarily, that kind of money is not available from your monthly revenues, so by taking a merchant cash advance, you can be funded to do whatever’s necessary to position your business for growth in the future.

For more information about the opportunities a Merchant Cash Advance could bring your business, contact Speritas Capital Partners at 203-247-4358.

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