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.

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