Being an entrepreneur is a constant roller coaster.
One week, everything’s going as planned and you have plenty of cash flow.
The next week, you’re trying to figure out payroll and you don’t understand why your bank account is showing in red.
This roller coaster limits your decision-making and increases your stress levels. A roller coaster you’d like to get rid of, but what do you do?
There are a few options, but access to additional cash usually helps any business.
And a great source for anybody businesses that need additional cash in the short-term?
Merchant Cash Advance
A Merchant Cash Advance is a form of short-term funding, with the amount and repayment based off of your future sales. It’s great for business owners who need additional cash flow in the slow season, allowing you to survive until the busy season comes back around.
But then it’s also great for business owners that are looking to grow. A lack of funding or cash will slow down any idea, making it hard to grow. An MCA will provide the cash you need for additional expenses or assets, letting you take action on your ideas.
Merchant Cash Advances also have different options for repayment, but the most popular option is paying with a percentage of future revenue. (i.e. 2% of weekly sales are remitted until the amount is paid in full).
You can also take the traditional route and make set payments until it’s paid off, similar to most short-term funding options.
This product was initially created for companies that collect most of their payments with credit and debit card processing (i.e. gas stations).
These companies made it easy to collect payments from revenue (or credit card receivables), but the concept has grown over the years…… and it’s now available for almost any company.
How It Works
We covered a lot of this in the opening section, but a Merchant Cash Advance makes life easier for business owners.
It provides the needed cash in times when you need it, letting you survive downturns and/or grow your business.
And it does all of this…. with little extra work needed from you.
Step 1. You Provide Necessary Information – The usual items like Name, Phone Number, and Annual Revenue.
Step 2. You Get the Cash – After the application is received and the MCA amount is determined, you have access to the cash you need. The maximum loan amount is determined by your revenue, but you can always go lower than the maximum amount. You’re now able to use this cash and move your business forward.
Step 3. Payments are taken automatically – Depending on the method that you choose, you’ll make payments based off a set frequency or percentage of sales. You can either have a set amount come out every week, or you can pay a certain percentage of sales until the amount is repaid.
And that’s it. You get the cash to survive the recession or grow your business, and pay it back as you go along.
Will It Help You?
A Merchant Cash Advance can be helpful to most business owners.
Whether you’re trying to survive a downturn or open another location, this product gives you the extra cash to do so.
And that’s not it’s only attractive feature.
It can also be helpful for business owners that don’t want to go through the process of traditional lending.
MCAs focus on future revenue, providing a source of funds for any business….. Even those who’ve had trouble with bank underwriting in the past.
So if you’re limited by low or uncertain cash flow, then a Cash Flow Solution will help you.
Recap of Merchant Cash Advances
A product that gives business owners the cash to survive periods of low cash flow, but also giving business owners the cash to act on their ideas — and grow their business.
It’s based of your revenue amount, eliminating a lot of the stress that comes with other loan products.
If you’d like more information on how Merchant Cash Advances do all of this, please visit this page.