ClickCease

7 Small Business Trends to Leverage in 2020

7 Small Business Trends to Leverage in 2020

11
May 2020
27
Jan 2025

The business world is evolving and new small business trends are emerging. Which ones should small businesses adopt for 2020? These seven trends are great contenders.

Embrace Social Media Storytelling

Social media is everywhere these days. With the rise of Facebook Live and Instagram stories, everyone wants video content. Tell your brand’s story with a creative mix of social media.

Think Green and Social

Today’s customer wants to buy from a company that shares their values. Think about a green initiative like reducing waste or adopting biodegradable packaging. Social causes are also popular.

Learn to Leverage eCommerce

eCommerce is finally hitting its stride. Traditional retailers are getting in on the act. Create a great website for your small business and watch your profits soar.

More Technology to Do More

Technology is driving eCommerce, but it’s also driving other parts of your business. Think about how automation could help you keep the books, conduct payroll, and so much more.

Make Your Employees Happy

Businesses today are investing more in their employees. Employee happiness improves productivity and the bottom line. Think about training and development initiatives or a wellness program that will keep them moving.

New Marketing Trends Will Dominate

Digital marketing has finally surpassed traditional marketing. New digital marketing media continue to emerge as well. Think about the rise of voice search or the popularity of audio streaming services as you plan your next campaign.

Personalize Customer Service

Finally, small business owners must realize the importance of customer service. Deliver personalized service to every customer, and you’ll win their loyalty.

Get the Funds You Need

Any of these initiatives could be a big financial undertaking for a small business trends. Get the right financial backing with a merchant cash advance. With the right funds, the possibilities are endless.

Related articles

April 4, 2022
January 27, 2025

Merchant Cash Advance vs. Cheques Factoring

Managing a small business is challenging. One of the common challenges for business owners is financing. Your company might not have a lengthy credit history or collateral to apply for a bank loan. Whether you want to grow your business or cover unforeseen expenses, you have come across other financing options. Merchant cash advance and cheques factoring are some of the available options for small businesses.

What Is Merchant Cash Advance?

A merchant cash advance is an alternative financing option for small businesses. You can take the funds upfront and pay them off with a percentage of future sales. The MCA is an ideal solution for businesses that need fast funding and might not be eligible to take a bank loan. The availability of funds is another excellent advantage. If your business needs the funds fast to proceed with the operations, the cash advance will be approved within a day or two.

PROS

Fast access to funds

When timing is crucial and you can't go through the lengthy bank approval process, the MCA is your solution. Small businesses can get funds within a day or two from submission. Unlike the traditional bank process, the financial institutions that issue MCAs don't do rigorous checks. They will check the business's past sales to determine whether they qualify for a cash advance.

Ideal for businesses that work with cash and credit cards

Retail and restaurant businesses rely on a high volume of credit card sales, making them ideal for obtaining MCA. If your business depends on cash or credit cards, a cash advance is the ideal financing method. This opportunity is perfect for the ones that don't rely on invoices. Instead, they take a percentage of the credit card sales to repay the loan.

CONS

High-interest rates

Merchant cash advance comes with higher interest rates than traditional bank loans. The convenience of having the funds fast will cost more. However, the price is worth paying when you need urgent funds to proceed with the business operations.

What Is Cheques Factoring?

A post-dated cheque is a cheque that can be cashed on the indicated date on the document's face. It is a form of advance payment and can be cashed on a specific date. According to Canadian laws, a cheque can't be cleared before this date. If you still need cash to keep your business's liquidity, you can sell the cheque to a factoring company.

PROS

Fast approval

Depending on the date indicated on the check face, you might have to wait long to receive the payment. If you need to meet your business needs urgently, factoring your cheques will provide you with funds quickly. They will pay off a particular value of the face value while keeping a specific percentage as a fee.

No credit score checks

When applying for a traditional bank loan, they will do a rigorous check on your financial history. When your small business is relatively new and doesn't have a credit history, you might be restricted from obtaining such loans. Your ability for cheque factoring isn't assessed with credit history, and you aren't required to disclose collateral. This is very important, as you don't need to put your property or equipment at risk. The factoring company will check the check for authenticity.

Not deal with cheques

Having to deal with cheques is a tedious job. Passing this responsibility to a third party means less time spent sorting out cheques so that you can focus on the more important aspects of your business.

CONS

Higher cost

The factoring company will charge fees to provide you with the cash in advance. They will usually pay 80% of the amount indicated on the face. However, the high cost might pay off if you need money urgently.  

Requirements

Cheques factoring companies might have specific requirements for cashing out your document. For example, the check drawer should be a reputable entity. Also, the factoring company might have particular requirements on the cheque's active time.

Merchant Cash Advance vs. Cheques Factoring

For cheques factoring, you will pay a fee to the factoring company expressed as a percentage of the total amount. On the other hand, you will pay off your MCA as a percentage of your future sales. When choosing the suitable financing method for your company, select the one that is a better fit for your needs. We at 2M7 are dedicated to providing the needed funds to enhance your business's liquidity without restrictions on how to use them. Get in touch with us, and we will answer your specific needs!

Read more
October 3, 2019
January 24, 2025

Which Industries Benefit the Most from Merchant Cash Advance?

Many business owners have trouble accessing traditional business loans. If you’re one of them, you may be wondering about alternative funding solutions. One of those solutions is the merchant cash advance, or MCA. Some businesses benefit from Merchant Cash Advance more than others. If you’re in one of these industries, MCAs could be the right choice for you.

Restaurants Need More Flexibility

Many restaurants face huge ups and downs, making their income somewhat unpredictable.If you already accept credit cards, merchant cash advances are a great way to secure flexible funding. MCAs could also help you invest in kitchen upgrades or follow up on trends like food trucks or local eating. You might even be able to open a second location to keep business growing.

MCAs Help Auto Repair Shops

Traditional financing can be risky for an auto repair shop. If you fall behind on payments, the lender might decide to collect on the loan collateral. That could mean the loss of expensive equipment or even your garage space.Merchant cash advances let you keep working without fear of the debt collector. Payments are based on your credit card sales, so there’s no need to worry about missing a payment.

Specialty Retailers Benefit from Merchant Cash Advance

Retail is another industry with slim margins. Specialty retailers face even slimmer margins, often because they’re selling to a small crowd.MCAs could help you weather the ups and downs. They could also help you upgrade your space or move to a more attractive one, so you can be where your customers are.

Is MCA Right for You?

Merchant cash advance has benefits for many different businesses. If you think it might be the right solution for you, get in touch with us. We can help you explore all financial solutions for your business.

Read more
June 29, 2018
January 24, 2025

The Future of the MCA Industry

Today’s small businesses don’t need to rely on big banks for financing options. Over the past decade, there has been a rise in alternative MCA Industry that make it easier and faster for startups and small businesses to find the cash they need when they need it.When business owners consider applying for a merchant cash advance (MCA), it is usually because they are in need of cash flow immediately, have poor credit, or haven’t had success with traditional loan applications. MCAs give business owners flexibility as funds can come through to their bank accounts within days and the transaction requires no personal guarantee. This is because MCAs are not considered loans, so there is no need to put up collateral to receive an advance.Merchant cash providers are strictly offering an immediate cash infusion for a portion of a business’s future earnings through repayment plans or a percentage of upcoming credit card transactions. As credit card use has expanded, this type of lending has become increasingly popular with businesses whose sales often come via card, not cash.As the MCA industry continues to grow, what will the future of MCA lending look like?

Collaboration with Commercial Banks

The success and growth of the merchant cash advance industry have led commercial banks to reevaluate their lending requirements to become more competitive with MCA providers. While banks must maintain strict lending standards, they may begin to partner or collaborate with MCA industry leaders like investors, advisors, or partners.Commercial banks are noticing the simplicity and necessity of offering small businesses quick and easy financing but may not be able to provide it themselves. By working with an MCA provider, they can give their clients additional options that have been vetted by the bank.

Changes in Oversight

One of the main differences between merchant cash advances and other more traditional forms of funding is that MCAs are exempt from state and federal oversight. This means MCA providers with poor reputations can go unchecked and there are no set standards in place for interest rates or procedural best practices.With the recent boom of the MCA industry, it may be necessary for an increase in oversight to help clamp down on lenders who are mistreating clients or to set standards for this growing sector. This would help protect small businesses, as well as lend credibility to those MCA providers that are doing the best work for their clients.

Additional Offerings

Some MCA providers are beginning to diversify their offerings to compete with new financing options offered by prominent names like PayPal and Square. This means some MCA providers may consider offering more traditional loans, lines of credit, and cheaper rates than their larger competitors.In addition, since small businesses are beginning to have more and more confidence in the MCA process, the interest of venture capitalists and other investors has grown. This might mean the creation of new technology and credit score models that may disrupt how financing has previously been regulated.

Read more