Running a successful automotive business requires an expenditure on day-to-day operations as well as expenditure on growth activities. When you’re short of funds and you need quick automotive business financing, a merchant cash advance can be an excellent solution. Here’s how merchant cash advances work and how you can best utilize cash advances to keep your automotive business competitive.
Repay From Future Earnings
Automotive business financing through a merchant cash advance can provide you with a lump sum of cash within a matter of hours or days. Funding approval is determined by expectations of future earnings. Under the merchant cash advance model, the borrower commits to remitting a portion of future receivables till the entire advanced amount and applicable charges are paid off. Unlike bank loans, there is no need for putting up collateral and you have the flexibility to pay more or less based on earnings.
Not Like Bank Loans
A merchant cash advance is an excellent solution for small business capital funding. Most traditional lending institutions are wary about lending to small businesses and may ask for collateral even if they approve. They consider various factors including credit score and credit history for approval – you may become ineligible for a bank loan if you have a healthy business but less than perfect credit score. Moreover, traditional lending institutes typically have lengthy, complex application processes, and months may pass by before you have the funds.
Easy Application Process
Although there are many small business capital funding options, merchant cash advances shine because providers don’t consider your credit score for approval. Providers of merchant cash advances offer simple, straightforward, and efficient application processes – you simply have to fill out an online application form, providing basic information about your business and business performance in the past few months. Approval rates are high and if you qualify, funds can be wired to your business bank account within hours or days.
Use To Cover Operational Expenses
Merchant cash advance providers welcome funding requests of all sizes. Whether you need a small amount of automotive business funding to cover daily expenses or a larger amount on a business opportunity, you may consider the merchant cash advance solution. If you need additional working capital to cover unexpected expenses such as equipment breakdown or cover payroll in a lean period, a merchant cash advance can come to your rescue and help you keep your business running smoothly and efficiently.
Use To Fund Growth Activities
A smart way to use automotive business funding is by investing in technology upgrades. For example, purchasing a state-of-the-art vehicle diagnostic system can help your staff perform accurate vehicle inspections on the latest cars that are heavily computerized. You may use a merchant cash advance to carry out renovations that can ultimately lead to new customers and more satisfied customers. For instance, you can add new furniture or utilities to provide a more comfortable waiting room experience.
You may also use the lump sum advance to open at a new location to meet the needs of customers in the surrounding areas.
For best outcomes, partner with a reputed provider of merchant cash advances. Plan by filling out an online application and see if you qualify!