Why a Merchant Cash Advance is Better than a Business Loan

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.

With COVID-19 being active throughout the year, e-commerce is generating more money than it ever has. Most of the physical means of buying and selling have been run out of business. Therefore, having an online presence has become more important than ever before. With that said, it’s safe to say that investment to update your website will be the best use of your money in 2021. It serves as the face of your business. Your website aims to earn your customer’s respect, as it helps them develop their first impression. Whether you trade-in footwear or have a grocery store that delivers, you would want to address several errors in your site, proving to be a profitable investment.

Long Term Investment

On average, a good website lasts for about three years. A well-made website with good optimizations and regular content updates can provide business that will exceed your expectations. In some cases, minor upgrades every now and then may last you more than three years. Spending money to milk those three years out of the site is a good idea because of the high ROI. You’re spending more upfront, but you’ll earn back tenfold in profit throughout the site’s lifetime.

Stay Up to Date

Website trends are changing rapidly. Just think about what websites are right now and what they were a year ago. These days, companies are focusing on minimalism and subtle color schemes. Two decades ago, the business made websites with flashing colors to attract the user’s attention. It doesn’t matter how good of a service you provide. If your website isn’t up to date, you’re not going to make a sale.

Outshine Competitors

Regardless of what service you’re offering, there’s always going to be one guy or one company that’s better at it than you are. So, when you just can’t outshine your competitors with your product, you can best them in other places. For instance, maybe your rival’s websites take 15 seconds to load. You could get the upper hand by halving those loading times. This would give your customers a much better experience with your website. Hence, even if your product is slightly inferior, your website makes up for it by outshining your competitors.

Maximize Security

If you’re ever used an antivirus software, you’ll notice that these applications receive updates almost every day. It may seem like developers are constantly updating their apps, but that is not the case. Instead, they’re trying to keep up with all the new and improved forms of malicious malware that people are constantly putting out on the internet. If you made your website five years ago, it’s optimized to the security threats present then. However, it doesn’t necessarily mean that the site is safe from some of the modern digital threats we’re facing today. By updating your website, you’re not just protecting your own data, but your client’s data as well.

Closing Thoughts

Updating your website can be a pretty expensive ordeal. Between hiring a web developer and paying server hosting fees, you can expect to sometimes pay bills ranging up to several thousands of dollars. To ensure you have the right resources to update your site, you can get some assistance from 2M7 Financial Solutions. We’re a company that offers merchant cash advances to business that need it. MCA means that you will only have to return a certain amount of your sales each month. If you need a company that can cover your website updating costs, get in touch with 2M7, and we’ll help you out.

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.