Merchant Cash Advances! They rank among the most popular financing options for businesses. But what exactly are Merchant Cash Advances? How do they work? And how can a Merchant Cash Advance boost your business? Here is everything you need to know about Merchant Cash Advances (MCAs).
What Is a Merchant Cash Advance?
A merchant cash advance, sometimes referred to as a turnover loan or revenue-based financing, is a type of lending whereby the lender funds your business against your business’s future sales.
Unlike a conventional loan, a merchant cash advance doesn’t have an outstanding loan amount, interest rate or term. Instead of interest rate, MCA lenders charge factor rate. MCAs are also paid using a business’s daily earnings.
These loans have an easy application process, and you can qualify for the loan even with a bad credit score. Additionally, there is no need for collateral.
Here are different ways merchant cash advance can help grow your business:
Expand Your Inventory
Business growth comes with a broad clientele base and an increasing customer demand. However, while this is every business owner’s dream, it can be challenging, especially if you cannot meet your customer’s demand. Unfortunately, it may mean that your customers will have to fulfill their desires elsewhere, which could be your immediate competitor.
However, with a merchant cash advance, you can quickly expand your inventory and meet the needs of your growing customer base.
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Hiring and Screening of New Workers
Business growth means increased production, which makes it necessary to hire more workers. However, you need money to get the most out of hiring and training new workers. Lack of it will mean hiring unqualified workers, which could do irreparable damage to your business.
Luckily, a merchant cash advance can solve this problem. It will make money available, which you can use to conduct a successful hiring process.
Opening of New Stores
Even when your current business is running perfectly, opening a new store can be daunting. You’ll require a huge amount of disposable money to acquire the new store and stock it.
A merchant cash advance could offer you a working solution. You will get a lump sum cash that will get your new stores up and running within no time.
New Tools and Equipment
You must acquire efficient working equipment to boost your business and stay top of your competition. This will improve your productivity and boost your workers’ satisfaction. However, new equipment requires a lot of cash, which you may not have. Luckily, with fast cash access offered by a merchant cash advance, you get to order your equipment fast and propel your business to greatness.
Failing to qualify for a bank loan doesn’t mean you should give up and wait for your business to collapse. Instead, take advantage of the merchant cash advance.
