Unquestionably, the holiday season is one of the busiest and most profitable times of the year for many small businesses. However, it also comes with unique challenges. Are you enduring a spike in inventory costs? Do you have increased staffing needs? Is there a need to budget new promotional expenses?
In order to your many unique demands, at this time of year, it might be best to apply for a merchant cash advance (MCA). This unique funding source has helped many a business owner to thrive during the holiday rush.
What makes a merchant cash advance different from a bank loan?
A merchant cash advance and a loan are two different things. Firstly, let’s start with what you likely know. A loan is borrowed money. When accepted, a person must make monthly repayments in order to keep in good standing with the lender. Interest accrues on the overall balance. If late payments are made, interest rates can increase and penalties can be levied. The longer the loan takes to repay, the more expensive it becomes.
A merchant cash advance is lump sum of capital given to a business in exchange for a percentage of future debit or credit card sales. Unlike traditional loans, MCAs are repaid directly through your daily transactions. There is no accruing interest. Instead, a one-time fee is attached to the amount that is advanced. No matter how long it takes for the advance to be repaid, the total amount due will not increase. This makes MCAs ideal for businesses with fluctuating revenues.
How can a merchant cash advance help you with your inventory orders?
As always, the holidays bring a surge in customer demand. Naturally, this means that you need to ensure your shop’s shelves are fully stocked. Whether you’re a retailer needing more popular items or a restaurant preparing for holiday parties, a merchant cash advance allows you to purchase the inventory you need. This can help you avoid missing out on sales due to stock shortages.
Courtesy of Cision Canada, JLL’s recently-released annual Canada’s Holiday Shopping Survey Report reveals that holiday budgets are on the rise. “Canadians plan to spend 32% more than last year with an average budget of $971 dedicated to gifts and holiday goods, the most significant increase since 2019,” reports the website. These findings highlight the need for businesses to stock up wisely.
How can a merchant cash advance help you with marketing?
Effective marketing is essential to stand out during the competitive holiday period. From running online ads to offering special discounts or creating eye-catching displays, these activities require upfront funding.
Mario Toneguzzi of Retail Insider also reported on the new JLL survey. “An impressive 99% of Canadians intend to visit shopping centres during the holidays, with 74% planning to make in-store purchases,” he writes. With a merchant cash advance, you can execute targeted campaigns to increase visibility and attract more customers.
Prepare for the holiday rush with Divvia!
Divvia offers a flexible merchant cash advance program tailored to your needs! Whether you’re stocking shelves, hiring staff or planning an unforgettable holiday campaign, we’re here to help you seize the season’s opportunities. Don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page. Let us help your business make this holiday season its most successful yet!
