Most Common Ways To Use Cash Advances

Today, I want to go over the most common ways businesses use Merchant Cash Advance funds.

MCAs are extremely efficient, as they can provide easy and hassle-free access to funding. 

​​​​​​​Also, keep in mind that this kind of business funding is not a loan. Rather, it’s a lump sum advance that you get in exchange for a specific percentage of your future receivables.

#1 Buy Inventory

As your business grows, customer demand will increase. Although this is excellent for your small business, it may work against you eventually, especially if you frequently run out of your most popular products and items.

Businesses that generate a high volume of  credit card sales, like retailers and restaurants, often use merchant cash advance funds  to purchase inventory and then remit payment on the advance using a specific percentage of the receipts/receivable collected.   

A merchant cash advance can enable these businesses to sell and then easily profit from inventory that they would not have otherwise been able to initially obtain.

​​​​​​​#2 Marketing Strategy and Materials

It is no secret that marketing, particularly in today’s competitive digital marketplace, is important for small business growth and expansion.

As most consumers now look for products and services on the internet, a solid and viable online presence is essential.

You will have to invest in a business website, social media, and reputation management in addition to traditional marketing.

There is no doubt that investing in updated marketing is a good use of money and many businesses use a merchant cash advance for this purpose.

#3 Cover Unexpected Costs or Expenses

One of the primary benefits of using a merchant cash advance as opposed to a conventional loan is a much more efficient  and simpler application process, as well as a shorter time to funding.

In many cases to qualify for a conventional loan you will need to supply several years of personal and business financial statements such as tax returns, accounts receivable and payables, operating agreements, etc. 

A merchant cash advance will typically require much less, often just a few months of banking history and a one-page application. 

​​​​​​​So, if you need quick access to cash  to cover any unexpected expense for your business, such as an emergency repair, there’s  no faster and simpler way to obtain the money than a merchant cash advance.

Conclusion

While Merchant Cash Advances can be used for many different business needs, these are some of the most common.

They’re all reasons why having access to a reliable source of Cash Advances is essential.

Get qualified for business funding today by visiting our funding platform ROK Financial here.