A merchant cash advance (MCA) provides a quick, easy, and flexible way to get the working capital your business needs to progress. It allows you to skip the tedious qualifying process and strict repayment plans of traditional bank loans. Instead, after a simple application process, the MCA company deposits a lump sum of cash in your business bank account in exchange for a percentage of your future daily credit and debit card sales.
MCA payback terms vary based on sales, meaning you won’t get locked in high fixed repayment draws during slow sale periods or a strict repayment period. Also, since an MCA doesn’t have interest charges, you don’t pay extra for an extended repayment period. With these merchant cash advance benefits, your toughest challenge will likely be choosing the best way to use cash from an MCA to grow your business. Here are six suggestions of how an MCA can empower you and your small business.
Cash for an Emergency or Unexpected Expense
A merchant cash advance’s quick qualification and funding process makes it a better choice for emergencies than other business financing options. Within a short period, you can use an MCA’s flexible financing to get money to take care of a legal matter, hire extra help for the sudden increase in business, or do emergency equipment repairs.
Rebranding
Sometimes, a business needs to change its brand image to get an edge over the competition, raise prices, attract new customers, or introduce new products. This change may require remodeling a store, changing the business’ name, repackaging, and redesigning the company’s website. Since you can qualify for up to $250,000 within 24 hours, it’s possible to get enough money to recharge your business by rebranding.
Adding New Members to the Sales Team
If you see an opportunity to expand into new territories, the money from merchant cash advances can help you add new salespeople to generate new business in those areas. The funds can give you leverage to increase market reach without straining your operating cash flow. If you need to estimate the cost of using an MCA for this business venture, you can use the Zinch MCA calculator online.
Bulk Inventory Purchases
If you continually re-order products for short periods, you may benefit from making large bulk orders. Most wholesalers reward customers who purchase inventory in large quantities with sizable discounts. By helping wholesalers move enormous quantities of product, you can get a substantial bargain on the per unit price. This move can significantly increase your profits. Since it can be challenging for a small business to raise enough cash to make bulk inventory orders, you can clear that hurdle by getting the money you need from a merchant cash advance.
Sponsor an Event
Sponsoring an event is an effective way to reach new customers, bond with present customers, and possibly increase sales. It also promotes trust and credibility. Throughout an average day, consumers receive thousands of advertising messages. Your sponsored event also allows you to make a dedicated connection with the attendees.
People usually attend events that feature activities and products that they favor. For this reason, your sponsored event allows prospective customers to associate your company’s brand with a specific activity or organization. A merchant cash advance for a small business can provide money to:
- Cross-promote the event
- Provide branded merchandise as giveaways or for-sale items
- Set up display areas
- Hire social media influencers
- Provide shuttle buses
Sponsoring an event is particularly beneficial if your company has a local target audience. In addition, it gives you a chance to form ties with other local businesses and organizations.
Digital Transformation
Many small businesses use advances in artificial intelligence (AI), machine learning (ML), and cloud computing to boost performance in financial management, marketing, sales, operations, and customer interactions. Most importantly, you can use digital tools and systems to interconnect all areas of your business and manage them from a single view. Using a merchant cash advance for a small business to fund your digital transformation strategy is one of the most effective steps you can take to make your company more competitive and profitable.
Your Next Move
An MCA can help you reach your business goals by removing the obstacles that hinder quick and easy access to working capital. Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000.
