7 Small Business Trends to Leverage in 2020

Marketing is one of the aspects of your business that takes a lot of your revenue. Business owners are sort of blackmailed into spending too much cash just because they have to outweigh their competitors and sort of 'steal' customers away from them. That's how the world of business works. However, a small business is already short on funds, and they can't pour that much money into marketing without affecting operational costs. If you find yourself in a situation where you need to up your marketing game but don't have the funds to do so, you're at just the right place. Here are five things you need to know about marketing small businesses on a budget.

1.   Stay Active on Social Media

Social media is one of the best forms of marketing that you have, and it's totally free. A lot of businesses look at social media as a tool just for outreach. It's a lot more than a way just to communicate with your audience. Social media provides your business with access to millions of people all over the world. The best part is that it doesn't matter what kind of business you have. You'll find tons of customers through social media.

2.   Focus on Loyal Customers

Finding new customers is something that every business has to do to survive. You have to scale your business to grow substantially, and that can only happen when you have new customers. However, in an effort to obtain them, companies often overlook their current loyal customers. We consider that a huge opportunity being missed. You can offer rewards, dedicated customer support, and discounts to ensure that these people stay interested.

3.   Think of Local Communities

Many businesses can take advantage of their local communities for growth and brand recognition. The best part is that you can advertise your business at some charity events, major gatherings, fairs, etc.

4.   Reward Programs

Your current customers can be a gateway to obtaining brand-new clients as well. Reward programs are an amazing incentive that encourages people to recommend your company or service to their friends and family. Word of mouth drives an average of $6 trillion in revenue for businesses globally. That's more than enough incentive you need to start a rewards program.

5.   Merchant Cash Advance

If you're planning to ramp up your marketing efforts but don't necessarily have the budget on-hand to make it happen, there are many financial organizations in the market that provide merchant cash advances. These MCAs are a lot different as compared to standard business loans. Instead of having to pay the money back in a lump sum, you’ll be returning the money through a percentage of your profits.

Closing Thoughts

Marketing does work, especially when it's carried out effectively and with consistency. Many will argue that it's one of the most profitable and, if you can’t seem to get your marketing done on a budget, 2M7 financial solutions is here to help you. We offer merchant cash advance to businesses in Canada. So, if you need some extra cash to fund your marketing campaigns, give us a call today to learn more.

Many businesses today are facing a cash crunch. In this environment, it’s important to understand the options you have as a business owner. There may be more avenues available than you think.One of those could be a merchant cash advance. What is a merchant cash advance, and how does it work? This guide answers these questions and more.

What Is a Merchant Cash Advance?

A merchant cash advance, or MCA, is a financing option available to many retailers, restauranteurs, and other business people. With this option, you receive cash in advance of actually earning it. The lender assesses you against your anticipated future credit card sales. They’ll then offer you a percentage of those sales as cash.You pay the advance back as you make those credit card sales. The lender takes a set percentage of each sale and puts it towards paying back the advance.

How Are MCAs Different from Business Loans?

A merchant cash advance is different from a business loan in a few ways. First, a business loan is assessed against your history. To decide if you’re eligible for a loan, the lender will look at your credit score. That includes information about payment history, how you’ve handled other debts, and more. They’ll also look at your business’s past income.They’re less interested in information about projected futures. You may show a potential lender your projections for the rest of the year, but they prefer more concrete evidence.The MCA is leveraged against your future sales. Instead of looking at your credit history and past earnings, the lender is interested in predicting future sales.That’s why this option is known as an advance, not a loan. The lender is advancing anticipated funds to you. They believe you’ll earn those funds in the future, so all that changes is when you get the money.Another difference between a business loan and a merchant cash advance is the repayment terms. A business loan is usually an installment loan. That means you’ll make a set payment at regular intervals. Those can be monthly, weekly, or even biweekly.With a merchant cash advance, the lender takes a percentage of daily credit card sales and applies that to your repayment. If your sales are down one day, you don’t need to worry about “making up” the difference or ensuring you’re meeting a minimum payment amount. Similarly, if your sales are high on another day, you’ll be able to repay more of your advance.There are also differences in how the lender earns on the money they’ve given you. A business loan will have an interest rate. Merchant cash advances usually come with holdback rates and repayment rates. Repayment rates are sometimes called factors.The holdback rate is the daily percentage you pay to the lender on your sales. The repayment or factor rate is the amount typically charged. You may, for example, pay a factor rate of 1.20 or 1.40, which means you’ll pay the lender another 20 to 40 percent of the original advance.

Benefits of Merchant Cash Advances for Business Owners

Now that you understand how the MCA works, you’re probably wondering if there are any benefits to using one. There are quite a few, actually.First, merchant cash advances are often more accessible than business loans. This is especially true for startups or small businesses without lengthy operational histories. You may not be able to prove to a loan lender that you can repay a loan. If you have steady credit card sales or other revenue moving through your business account, then you should be able to qualify for an MCA.Another benefit is the speed with which funds can be delivered. Loan applications could take time to process. That’s because the lender wants to check in on your history and make credit inquiries. By contrast, a merchant cash advance lender is more interested in your future. They want to see you have funds moving through your account regularly, and they can use those numbers to anticipate future sales.This process takes much less time, which leads to faster approvals and deposits. If you need cash in a hurry, an MCA is a much faster option than a business loan.Flexibility is another major benefit of MCAs. Since the lender recoups a percentage from sales, the repayment goes up and down with your sales volume. You don’t need to worry if your sales fall, and you can repay the advance faster if your sales are high.

Drawbacks of MCAs

Like everything, merchant cash advances do have a couple of downsides. One is that MCAs don’t help you build credit.  That’s because they’re not loans. If you’re looking to build a better credit history for your business, you may want to investigate other options.Also, you have to consider that the annualized interest rate can be much higher than a business loan. MCAs could end up costing your business more than a loan might, especially over the long term.

How to Apply for a Merchant Cash Advance

MCAs are good options for business owners who need cash quickly and will pay it back relatively fast. They’re also an option for businesses that don’t have long operational histories or may not otherwise be approved for a loan.If that sounds like you, you might wonder how you can go about getting a merchant cash advance.

• Your first step should be to research providers in your area. Compare offers. Be sure you understand the holdback rate and factor rates for each offer.
• Fill out the application form provided by a lender. These are typically one to two pages. You’ll have to provide basic details about your business, such as your business tax ID.
• You’ll also need to provide documentation. This is usually a combination of bank statements and payment processing data. The lender will likely ask for several months’ worth of information, so they can accurately assess trends and the amount you qualify for.
• Once you’re approved, you can set up processing as required. Finalize the details on the advance, and make sure you understand the terms. Repayment sometimes starts as early as the next day.

Fund A Better Tomorrow for Your Business

If you’re worried about financing, you have plenty of options out there, and the merchant cash advance is just one of many.If you think a merchant cash advance might be right for you, get in touch with our experts. With their help, you can get access to the funds you need when you need them.

Cannabis has been legalized in Canada since 2019, and since the legalization, the consumption of marijuana has skyrocketed to the extent that setting up a cannabis business in the country is guaranteed to be a profitable investment. There’s never been a better time to move into the industry. However, if you’re a cannabis enthusiast that wants to make a move into this industry, the first thing you’re probably concerned about is the working capital to start the business. Business loans in Canada are a big part of the entrepreneurial world, however, getting funding for a cannabis business is easier said than done. So, how can you get funds for your future company? If this is a question that you’re asking, you’re at just the right place. Here are a few funding options from sources that will happily lend you money.

Bank Loan

Banks are obviously the first option whenever we think about anything money/loan-related. But cannabis, banks, and business loans in Canada are three things that don’t blend well together. Most mainstream banks will refuse to work with cannabis companies. However, if you can find the right bank, there’s potential to get your hands on a large stack of cash for your cannabis company at reasonable interest rates. There’s a lot of room for customizing payment plans as well, so you can pay back the money on your terms. You’ll have to find a relatively smaller bank that has lenient policies for where they invest their money. But even those banks are strict with their requirements for loans and will check to make sure you don’t have bad credit. The banks will not approve a loan if there’s any signs of problems in your credit and financial history.

Business Line of Credit

A business line of credit is another underrated option when it comes to getting funds for a cannabis business. It’s a simple process that provides your business with a revolving credit limit. It’s very similar to a credit card, but interest rates are significantly lower. You can withdraw a certain amount of money that you need and will have the option to pay it back in the form of monthly balances and partial payments. You’ll have the added benefit that the interest will only be charged for the outstanding balance of your card, making it a viable option for business loans in Canada. This is a good option for some quick funding when you need to pay the utility bills, fund inventory refilling, pay salaries, and more. However, you’re not going to get a large amount of money with a business line of credit. You’re going to be limited to a certain amount of money, depending on your credit limit. If you’re looking for funds to start your company, a business line of credit is not a good idea. If you need a small amount of money for occasional expenses, this is a great option.

Merchant Cash Advance

A merchant cash advance is, by far, the best way a cannabis business can secure funding. It’s a system where you pay today’s bills with tomorrow’s money. Your MCA provider will hand over a flat sum of cash directly into your account, and you’ll only have to return a certain percentage of your sales every month until the entire amount is covered. This is a flexible option for businesses that aren’t certain of what their sales volume will be each month. For example, if you have $0 in generated revenue for December, you won’t have to pay back anything to your MCA provider. That’s the major benefit of MCA and why it’s such a great idea for an industry like cannabis. Where Can You Get a Merchant Cash Advance? So, now that you know what an MCA is let’s talk about where you can get it. 2M7 Financial solutions is a Canadian merchant cash advance provider that has been helping small businesses like yours get over the funding limitations and compete with your top competitors. The best part about working with 2M7 is that we give funds to companies that banks and other lenders are saying no to. Here’s a breakdown of why 2M7 is the company that should fund your business:

• Quick Process – We work fast! If you signed up for an MCA in the morning, you could have the money in your account by the end of the day.
• Ignoring Bad Credit – Unlike banks, 2M7 doesn’t rely on credit scores as a factor to decide who gets funding and who doesn’t. If you have bad credit, you are still eligible for an MCA.
• Multi-Use Funding – Businesses have tons of miscellaneous costs, and we get that. That's why the money you get from 2M7 can be used for any business purpose you choose.

Conclusion

A merchant cash advance is the best way to secure capital for your company. So, if you are looking for a Canada-based provider to help you out, get in touch with the funding experts and discover how this alternative financing option can help your business.