Expanding Your Business through Merchant Cash Advance (MCA) Benefits
A growing 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.