Merchant Cash Advance vs. Cheques Factoring

There are many funding options available for small business owners like you. You may be thinking of a business line of credit or even a business loan.Another, newer option is the merchant cash advance (MCA). This option is quickly gaining traction with business owners. Why? MCAs are often better than business loans.

A Merchant Cash Advance Fits Your Needs

Business loans are traditionally for large business purchases. Some lenders may not offer business loans unless they’re a certain size, such as $100,000 or more. If you need less than that, you may not be able to qualify for a loan.A merchant cash advance is different. It can be as big or as small as you need, giving your business more flexibility when it comes to funding. If you just need a little bit of cash to stay afloat, an MCA could be a great option.

MCAs Are Flexible

A merchant cash advance may also be the right choice because it’s flexible in terms of payment. MCAs are assessed on your future sales.The lender will look at your past sales and estimated future sales. They’ll then offer you a percentage of those sales as an advance on them.As you make sales, you pay back your advance. If your sales are higher, you can pay the advance off more quickly. If your sales are lower, then you don’t need to struggle to meet a certain minimum payment.This makes a merchant cash advance much easier for business owners like you to manage.

They’re Great for Startups

Many lenders require an extensive business history before they’ll extend a formal business loan. They want to see past proof of success.A merchant cash advance looks to the future, not the past. Even if you’ve only been in business a couple of months, you may be able to qualify for an advance.If you’re thinking about the future of your business funding, then it’s time to consider a merchant cash advance.

Every new year brings new tools, techniques, and strategies that help small and medium-sized businesses succeed in an increasingly competitive world. Here are the top four business trends you need to look out for in 2019.

Cybersecurity

Cyber attacks are going to become a more common threat to small and medium-sized businesses. Everyone is a vulnerable target. Whereas many companies are actively preventing attacks, there will be a shift to proactive detection and response in the year to come.

Personalization

The personal touch is going to rein in 2019. Personalized marketing campaigns, transparency, and personal calls-to-action are going to be the ways to connect with potential customers.

Go Remote

The remote office is becoming increasingly a part of today’s business trends world. Small and mid-sized businesses can now reduce operating costs by rethinking their staffing strategies with the use of a remote workforce. With so many low-cost telecommunications platforms available, the days of the cubicle are now on the decline.

Reviews Are Key

Some business leaders resist social media use in the office, but social posting is a great way to connect with your local audience and get valuable reviews. Nearly 95 percent of shoppers read online reviews before making a purchase. It’s worth taking the time to gather testimonials and write case studies more now than ever.If you are looking to grow your business in 2019, there are alternatives to a traditional bank loan you should consider. For details on how you can get approved for a merchant cash advance, speak to one of our experts today.

Expanding your business is an exciting opportunity, but it can also present serious challenges. One of the most common is actually cash flow issues. How? If the business is growing, shouldn’t you have more money flowing in? Business may have increased, but you might need to pump money into equipment or hiring new staff so you can keep up with demand. Until you can get that new computer system or hire that extra person, your customers are experiencing a bumpy sort of service. Your income could be uneven as a result, as you might not have the products they want when they want them. You might have trouble getting invoices out on time. Does this sound like your business? A merchant cash advance could be just what the doctor ordered. The benefits of an MCA could help you manage the cash flow issues presented by an expanding business. Here’s how.

Merchant Cash Advances Help You Get the Cash You Need

A merchant cash advance, or MCA, gives you access to funding based on your future credit card or debit card sales. The lender will look at your past sales, then extend you an advance as a percent of estimated future sales. That means the more sales you’re likely to make, the bigger the advance can be. In turn, you can invest it into whatever you need it for. That’s because the MCA doesn’t have to be directed towards certain goals, unlike an equipment loan or a payroll loan. You can use the funds for what you need, when you need it.

MCA Repayment Terms Are More Flexible

Another bonus of a merchant cash advance for a growing business is that the repayment terms are more flexible. With a traditional loan, you’ll have a set payment that you have to make every month. With a growing business, income can be unpredictable. That, in turn, could lead to situations where you’re crunched for cash. You may feel squeezed needing to make your monthly loan payments. That could lead to bigger problems, such as a poor credit score or even defaulting on a loan. Since an MCA is made against your future sales, you pay it back as you make those sales. If your sales dip lower than expected, then your payment falls too. If you make more, then you can pay your loan back faster.

It’s Faster to Get a Merchant Cash Advance

If you find yourself in a pinch over payroll or other financial obligations, then you might wonder what choices you have to get the funding you need. A merchant cash advance is much faster than getting a traditional loan. That makes it the perfect stop-gap measure for a growing business. Whether an unexpected expense crops up or sales grew slower than you’d hoped, an MCA can help you make up the difference.

Need Some Cash?

If your growing business needs a quick influx of cash right away, then it’s time to get in touch with a merchant cash advance provider. With their help, you can keep your business growing the right way.