A merchant cash advance is a financing option that has become popular among small to medium-sized business owners. This funding solution is ideal for businesses that have steady streams of credit card sales. An MCA allows business owners to get funding in a quick and easy manner. This is because it is not a loan. It is payment for a portion of their future credit card sales.
What would you use a merchant cash advance for?
Expansion.
A merchant cash advance can be used to expand a business by opening a new location, purchasing additional inventory or introducing a new product line. This funding option can also be used to upgrade existing equipment or to invest in new technology that will improve business operations.
“One of the main reasons for business expansion is the opportunity to bring in new customers,” says Tracey Stepanchuk on FastCapital360.com, “When you expand into a new geographical area, you’re effectively entering a new market. This allows you to target people living locally who can use your product or service, and who might have balked at the idea of traveling to your initial location.”
Purchase new equipment.
A merchant cash advance can help a business owner to afford the purchase of new equipment. By doing so, faulty gear will no longer prevent business operations from improving. Depending on the business, an owner can buy new manufacturing equipment, purchase a new delivery vehicle or even invest in a new kitchen. At the end of the day, the new equipment will help the business to become more efficient.
Hire new employees.
A merchant cash advance can be used to hire new employees. This could include taking on new sales representatives, bolstering your customer service team or creating a new marketing division. The additional personnel will help your business to reach new customers and boost its overall reputation in the marketplace.
“Even if your existing workforce is delivering on their objectives, new candidates can bring fresh perspectives, innovation, and creative ideas,” contends global employment platform, Oyster, “Employees who have worked elsewhere can offer new ideas to address existing problems—including problems you may not even know you have.”
Improve cash flow.
An MCA can be used to improve cash flow since it provides business owners with the capital they need to cover short-term expenses. This could include paying bills, purchasing new inventory or even covering the cost of repairs. Improving cash flow will help the business to run more efficiently and effectively.
Marketing campaigns.
A merchant cash advance can be used to launch a marketing campaign. Do you want to boost brand recognition and drive more sales? Put your MCA to good use by investing in digital marketing, print advertising or even a direct mail campaign.
“Before starting your business, you likely had an idea of your ideal customer,” writes Dharmesh Shah on HubSpot.com, “However, marketing helps you even get to know this ideal customer more. How they interact with your campaigns and marketing messages helps you identify what’s important to them and how you can connect better with them.”
Apply for a merchant cash advance today!
As Canadian business owners, we understand that when an opportunity presents itself, timing is everything. Divvia is happy to offer you the funds your business needs in less than 24 hours! To apply for a merchant cash advance, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!
