Merchant Cash Advance- The New Age Financial Scheme for Small Businesses

Summary: Many a time, businesses need immediate funding without possessing a great credit score or collateral. With a merchant cash advance, there is hope for small businesses and startups.

Suitable for a wide range of businesses, merchant cash advance financing is a flexible funding option designed to ensure that merchants get the cash they need. This concept is fairly new but has already become quite popular in the business sector. Read on to find out why.

Features of a Merchant Cash Advance

Unlike traditional financial institutions, a merchant cash advance provides funds for businesses that have temporary credit needs. Based on the Point of Sale receipts, an entrepreneur will be able to receive a certain amount of cash. The entire process is simple, uncomplicated, and completed very quickly. Approval may be gained anywhere from 3 –7 days. Both the lender and the merchant will come to an agreement as to the repayment terms and tenure. Flexible and stress-free, the amount to be paid back will depend on how the business is doing. The entire advance amount needs to be paid in full within this time period. For every business owner, time is critical during a financial crunch or need. With a cash advance, you will receive the cash immediately without losing out on too much time. As an added bonus, one can avail of an advance without collateral as well as choose to avail of financial help from other lenders simultaneously.

Points to Remember Before You Invest

Before you do decide to choose cash advance funding, there are certain points to keep in mind. Although your credit score is not a criterion, the lender may have to investigate your credit history to understand your repayment habits. A hard credit check can negatively affect your business’s future credit score. Since this type of ending does not have a fixed structure, it is regulated by a Uniform Commercial code that differs in each state. Daily repayment can affect the cash flow of your business, and if you ever do make the full repayment before the decided tenure, don’t expect savings on your interest. While you do get immediate funding, remember that the merchant cash advance business may charge a high percentage rate, but its advantages offset the cost in the long run.

Applying for Merchant Cash Advance

Therefore, to begin the process, you need to fill out an application form and provide certain necessary documents. Next, the merchant will have to submit proof of citizenship, a copy of the lease, and bank statements. Finally, sit tight and wait for the approval that could come in less than 24 hours. Sometimes switching the credit card processor will be necessary to avail funding. Once the amount is decided, both the lender and the merchant will have to decide on details such as payback amount, holdback percentage, advance amount, and terms of the advance. After the disbursal of funds, the entire process of repayment automatically begins through the merchant’s account.

Merchant cash advance lenders look for applicants that have a stable business, a minimum annual turnover, and one that has been using credit cards for a while.

Managing Supply Chain Disruptions With Merchant Cash Advances

When they work, supply chains are like magic. The organization works like clockwork, things get done well and on time, and most importantly, customers are happy! But when supply chains falter, a business can quickly descend into chaos and running it can turn into a nightmare. We saw an extreme version of this in the first half of 2020 and learnings from this period should inform how we build our businesses back strong in the future.


So, what should (or can) a small business owner do to avoid the fall out of supply chain disruptions? Here are some well-tested steps recommended by the experts –

  • Create an emergency supply chain plan
  • Stock up a massive bulk of inventory
  • Identify back up suppliers and diversify your supply base
  • Go local, if possible
  • Put in robust supply chain and overall security measures
  • Build partnerships with reputed logistics partners

Putting in place all these processes and planning for eventualities,of course,comes with an attached invoice. You might not need to spend too much to conduct an audit, identify gaps, and build a back-up plan, but the rest of it will require upfront cash to put into action.

This is where most small businesses drop the ball! And it hurts them twice as much as larger concerns! They are the ones least likely to have the cash reserves to weather disruptions, as well as being the ones with minimal protection and contingency plans.

Easy cash advances by alternative lenders can help in both scenarios –

To be better prepared

SME owners don’t have to put off strengthening supply chains due to lack of liquidity. With easily repaid cash advances, they can invest at their own pace to bring in the various measures mentioned above.

merchant cash advance

They can test and replace vendors, diversify to reduce risk and dependencies and work with good logistics partners who can help them in the long run.

Reduce impact in case of disruption

Cash advances can also come in very handy if things get rocky. Supply chain disruptions can have a serious impact on the cash flow and using alternative financing can help companies pivot quickly to newer business models, stockpile unsold inventory or plug the gap in cash-to-cash conversion cycles.

Access to money will keep SMEs afloat through the worse of it and help them restart when the situation improves.

If you have suffered supply chain disruptions in the past, then you know how harmful they can be. With some judicious planning, you will be able to avoid experiencing them again. So, if you have a plan to bolster your existing operations sitting on the back burner, now is the time to put it into action. Get in touch with our team to unlock the funds to invest in keeping your business safe and growing.

Merchant Cash Advance: Your Finance Partner during the Highs and the Lows

Summary: Running a thriving online or storefront retail store requires a sufficient amount of working capital to ensure the operations are smooth. This is especially true during off-seasons when business owners may experience a dip in the cash flow.

Upfront cash ensures that small business owners can invest in good equipment, employ capable staff, keep products in stock and maintain a proper inventory. Many a time, you will find yourself needing emergency money for repairs or injecting capital to expand and grow, or even to pay salaries and essential operation bills. Since most banks don’t easily approve funds for small businesses, merchants need to look for other avenues for their retail store funding.

Industries that Need Retail Cash Advance

The best thing about merchant cash advance is the freedom they provide to the business owner with regard to how the money can be spent. A retail store owner can use the cash to make payments, upgrade, expand, stay afloat or reinvent. Industry sectors such as bars, restaurants, liquor stores, bakeries, hotels, cafes, barbers, coffee shops, pet stores, shoe stores, pharmacies and doctors, bicycle shops and car washes, beauty salons, and spas benefit greatly from a cash advance. Most of these sectors get their payments through credit or debit cards and experience seasonal high and lows.

Ways to Utilize a Retail Cash Advance

So how exactly does cash advance benefit the retail industry? Well, for one you can use the funding to update your retail technology. This tech includes POS systems, payment services, and mobile apps that could add so much value to your business operations as well as offer substantial services to your customers. As a retail owner, you can use the money to stock up on your inventory so that you have the products your customers need. This is especially true during peak seasons where certain products are in high demand. In order to function, you need to be able to meet the payroll in order to keep your experienced staff happy and loyal. Retail store financing also ensures that you can invest in the store’s appearance, hiring additional workers during busy seasons, and providing the best in customer service.

Benefits of Retail Cash Advance

The amazing thing about financing your retail store through a cash advance is that you can gain funding approval within 3- 72 hours. The entire process requires minimal paperwork, documentation, and time. The form itself can be filed online and accompanied by the bank statements and I.Ds. With many of the small business sectors, there are fluctuations with regard to cash flow and income which also means that your credit score may not be up to the mark. Moreover, as a startup, you may not have too many assets to act as collateral when seeking funds. With a merchant cash advance, your credit score isn’t even an issue. Lenders are more focused on the business cash flow since the payments will be debited directly from the merchant’s bank account.

A merchant cash advance is more like a lump sum cash advance based on future sales. To add to this, the payments are based on the percentage of actual sales, which offers a more flexible repayment process, convenient for both lender and business owner.

Prep Your Business For The Holiday Season With A Merchant Cash Advance

The holiday season is the money-making time for most retail businesses! If done right, a good holiday season can actually bring enough profits into a business to sail through the extreme low-season cash flow challenges. All SME owners know this, and most plan well to make the most of the Christmas season; however, many get tripped by one big stumbling block – money!

So how can you avoid falling into the cycle of low-investment-low-profit this year? The answer is simple, by bringing in financing on time. Naturally, maxing out your credit cards or queuing up at the bank is not going to work, and thankfully alternative financing agencies like ours can be relied upon to provide financial aid where and when needed.

At Crest Hill Capital, we specialize in providing small and medium-sized businesses with fast and hassle-free access to merchant cash advances.

What Is A Merchant Cash Advance?

An MCA can be defined as an advance payment in exchange for a percentage of future sales from a business. Businesses that apply for a cash advance will get the amount deposited quickly into their accounts and repay the amount and associated fees as daily/weekly deductions from their business revenue.

A merchant cash advance is great for fulfilling short-term capital needs and can also be used as a liquidity booster for new business ideas.

The Crest Hill cash advances are

  • Extremely fast – often servicing clients in 24-48 hours;
  • Flexible – offering freedom to take on any amount
  • Fair – taking a holistic view of the creditworthiness of the business

Some of our clients have used our MCAs to manage high-seasonal peaks by:

  • Buying more inventory well-in-advance to accommodate the growing demand
  • Hiring extra staff to manage the holiday rush
  • Providing attractive discounts and seasonal offers
  • Laying on extra marketing budgets to attract more customers.

The list goes on!

If your business can make money during the upcoming holiday season, then now is the time to pull out all the stops. With alternative financing options, you finally have the capability to execute your biggest ideas. Don’t waste this opportunity!

Call the Crest Hill Capital team to understand how much you can get and to know the details of the repayment terms and conditions. Our team can be reached at 800-828-0452.