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.

How Competition Can Impact your Liquor Store

Whether you own a large store or a shop around the corner, there’s no denying that competition that greatly affect your business. This is why many stores opt for liquor store business financing to overcome the pressure that competition puts on the business.

Loss of customers

Customers can be quite fickle-minded when they decide to visit a store. Even if you have stocked up on the finest brands, something like bad décor could drive your customers away. Thus, it helps to look at your business from a 360-degree angle to identify aspects that could be causing lower traffic to your store. If you don’t have the necessary funds to tackle these needs, then opt for small business finance for liquor stores, which will help you meet urgent financial requirements.

liquor store financing

Loss of reputation

Are customers constantly comparing your business with that of the competition? Is your store relatively new, and you’re not able to compete with larger stores? It may be time to take matters into your own hands and deal with the situation. For example, with the right funds, you can get the help of a marketing expert or kickstart an online social media marketing campaign. There are ways to get your brand out there in the market so customers recognize and relate to it. For the necessary funds, you can apply for liquor store business financing to help you meet these expenses. Further, you can also offer discounts and specials, especially during holiday seasons, so customers will be drawn toward your store.
A merchant cash advance comes in handy as it can be paid back from your regular credit card transactions. Therefore, it adds no extra stress on your business. To overcome financial problems in business, apply for alternate funding and give your business a new lease on life.

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.

Ways to Get Your Trucking Business to Success

The trucking industry generates revenue of over $700 billion annually. Needless to say, the industry is rife with competition. To succeed in this thriving industry, incorporate the following strategies into your business model. 

Find ways to expand your client base

The first step towards succeeding in the trucking industry is expanding your customer base. This is best done by meeting potential customers personally. This will help develop a real connection with them, and such connections form the basis for long-lasting customer relations. Understand what your potential clients are looking for and incorporate such provisions into your business. The capital required to make these changes can be availed from service providers that finance commercial truck businesses through merchant cash advances. 

Trucking Business Financing

Stay on top of documentation

When you think of trucking, paperwork is the last thing that comes to your mind. However, a trucking business involves documentation of routes, orders, fuel, etc. A trucking business that has its paperwork in order works like a well-oiled machine. Invest in a back office that is staffed with efficient employees who are adept at maintaining proper documentation. The funds required for this can be procured from service providers who offer merchant cash advances as part of their trucking business funding scheme. 

Be wise about your fuel purchase

Cost-efficiency is a hallmark of a successful business. Find ways to reduce the costs on your greatest expense in trucking- fuel. Tax on fuel is usually dependent on the state in which you fill your tank. However, fuel for trucks is taxed on the basis of the quantity of fuel used every journey. You can cut these costs if you buy fuel from pumps that offer the lowest base price as opposed to the lowest pump price. 

For more details on trucking business funding, get in touch with reputed lenders in this niche.

Growing a Successful Liquor Business Just Got Easy!

If you’re looking to start or expand your liquor business, then liquor store purchase financing is just what you need. A traditional financial institution will definitely be hesitant to lend funds to businesses in this niche. On the other hand, if you choose alternate funding solutions, you could get started with your business right away.

How to get the right capital?

There are highly reputed and professional lenders that offer small business finance for liquor stores. Not only do they understand the intricacies of this niche, but they have several funding solutions that would be ideal for your business. Many stores that have struggled for finances have opted for a merchant cash advance. This product is one of the easiest ways to fund your business as the process is quick and uncomplicated. You can quickly apply online, provide the necessary documents and receive funds in as little as three business days. Once your application has been approved, a funding specialist will contact you to explain the funding solutions available to you.

liquor store purchase financing

How to use the extra funds?

As a liquor store owner, there are various ways in which you can use liquor store purchase financing. Extra funds can be used to pay for the right location, buy furniture or equipment, hire experienced staff, do repairs or maintenance, enhance security features, etc. You could also heavily invest in marketing and advertising, so new customers frequent your store. Using a merchant cash advance, you can introduce new offers or discounts, especially during the holiday season. Further, you can invest in inventory so your customers won’t be disappointed. 

Small business finance for liquor stores is the right way forward if you want to succeed in your business. Go ahead and apply to find out if you’re eligible. 

Working Capital Requirements for a Small Business

Summary: Different businesses require different amounts of working capital at different times to meet business objectives. Several key factors will determine your working capital requirements.  

Working capital is the level of funds you require to keep your business operational. Working capital can simply be defined as the difference between a company’s current assets and liabilities. It is important for smaller businesses to maintain positive working capital because mainstream financial institutions may not be able to process funding at the required time. Capital funding for small businesses can be obtained through a merchant cash advance facility. The amount of working capital you require to operate smoothly depends mainly on the type of business, operation cycle, and business goals for growth. Let us examine the key factors that will determine your working capital requirements. 

Working Capital for a Small Business

Type of Business

Businesses will require different amounts of working capital, depending on the nature of the business. Brick and mortar businesses that require to stock physical inventory will require a considerably higher amount of working capital to run smoothly. This includes retail and wholesale businesses as well as manufacturers. It is important that manufacturers have a supply of raw material to add to their inventory to make their products always available to distributors and customers. Seasonal businesses may require higher capital during specific times of the year. For example, winter clothing will be in high demand during winter, and retail stores will have to stock up on extra inventory and add extra staff to keep up with this requirement during this period. Businesses that deal with intangible products or services such as consultants will require lower working capital. Small business owners will have to turn to online business funding to raise funds quickly in the form of a cash advance so that their operations can run unhampered. 

Operating Cycle

In an ideal situation, your business will be able to pay back its debts with revenue from sales. However, this may not be possible in every situation as sometimes, it may take more time to raise that kind of revenue, which will take care of your operational needs as well as your other financial obligations. Apply for small business funding online to take care of your additional capital requirement. You can receive a cash advance based on the projected future sales, and repayment terms are generally flexible. 

Management Goals

Your specific business goals will also determine the amount of working capital that you require to run your business smoothly and profitably. Small businesses looking to expand in terms of size or additional stores will require more working capital. Those planning to add more products or develop new methods will need to spend more on R&D. A cash advance is the quickest option to obtain capital funding for small businesses when compared to other forms of funding. 

In order to meet all your business needs for capital funds, a merchant cash advance is quick, simple, and convenient and can help you grow your business without any interruption. 

Two Common Mistakes that Small Businesses Should Avoid

There are thousands of small businesses across the United States, but unfortunately, not all are successful. It takes good business sense and the ability to capitalize on opportunities to really succeed in any industry. With small business capital funding, there are specific steps that you can take to ensure the growth of your business. However, whether you run a retail store, a medical shop, a nightclub, or a trucking business, it is important that you stay away from these dangers.

Staying away from technology

If you are not a tech-savvy business owner, investing in technology can seem a bit scary. However, the right technical products can save time, effort, and cost in the long run. It can also lead to better sales and revenue. For example, investing in inventory management software can help you keep track of inventory levels, shortages, fast-moving products, etc. Business funding companies can help you secure timely finance so you can buy products that will help your business become more effective.

Staying away from marketing

Irrespective of the nature of your business, there is bound to competition from local as well as national stores. As a business owner, you would need to keep abreast of what the competition is doing and then identify ways in which you can increase your market share. With small business capital funding, you can have the working capital to create flyers, brochures, or even a full-fledged website. Further, you can invest in in-store marketing such as window displays, discounts, special offers, etc.

Don’t let financial shortages affect your growth plans for the future. Apply for a merchant cash advance from business funding companies and set your plans in action. With flexible repayments and a stress-free application process, a cash advance is your best possible solution for additional working capital.

How Alternate Funding Can Help Retail Employees

A retail store needs a team of well-trained and experienced staff to ensure that customer needs are met professionally and in a timely manner. Having disgruntled staff can impact the work environment and will not help sales in the long run. However, investing in staff can be expensive unless you opt for retail store financing. Let’s look at ways in which this can help.

Employee payroll

Whether there’s a pandemic going on or not, employees expect to be paid on time. As individuals, they have personal goals and bills to meet. Delaying your payroll due to working capital shortages can lead to unhappy employees who may not be in the right frame of mind to push your products and generate sales. With retail store funding, you can apply for extra funds that you can use to clear payments, especially during slower months.

Team training

As a business owner, look for training programs to improve your team’s technical and soft skills. Whether it is communication, leadership, or customer service, these are skills that are vital to marketing and sales. When you invest in timely training programs, your team will be motivated to use these skills in real-life situations. Further, they can be trained in conflict management, stress management, and basic computer literacy. Having a well-trained team will improve overall efficiency in the workplace.

Bonuses and benefits

Retail store financing can also be used to encourage or compensate employees for a job well done. You can also offer bonuses or rewards during the festive season or towards the beginning of the year. Benefits can also be non-monetary. For example, you could organize in-house competitions or take your team on a short weekend break. This will motivate and keep them loyal to your store.

These are just some of the ways how you can use retail store funding to help your team.

No Business Is Small Enough To Escape Cybercrime. Find Out What You Need To Do To Safeguard your Business.

If you thought your business is too small to attract cybercriminals, you couldn’t be more wrong.  The news reports might have given the impression that only global and national giants fall prey to cyberattacks, but the reality is that 28% of the security breaches in 2019 involved small business victims (according to Verizon’s 2020 Data Breach Investigations Report (DBIR)). 

Getting hit by a cybercriminal can leave a serious dent in your revenue, expose your customers to harm, damage your reputation and, in an extreme case, even lead to your business shutting down. We know that with so much work to juggle and so many competing drains on your capital, it is sometimes easier to look the other way and hope you stay under the radar of cybercriminals. But this head-in-the-sand approach will not solve the problem; you need to invest time and money into securing your business on all fronts.

Here is how you can strengthen your online business security:

  • Train your employees to stay safe online

Bring in professionals to make sure ALL your employees are well versed with best practices of managing online assets safely, especially being aware of phishing scams or malware in emails.

This is doubly important due to the ongoing remote work scenario that opens up access to company infrastructure to multiple, unprotected devices and networks.

  • Bring in strict policies backed by the right tools

You should also establish and enforce robust password/access management rules across the company. Employees must be encouraged to use complex passwords, keep business and private matters separate, and practice all cyber safety protocols. Investing in professional tools for password management, email encryption, or two-factor authentication is an excellent way to enforce a streamlined security system.

  • Invest in the best security software

There are several excellent corporate security software products available on the Internet. Most of these have a complete stack of firewalls, spyware and malware detection tools; however, we recommend you go a step further and work with an IT service provider to bring in more effective measures. Many software companies offer proprietary AI-based tools that provide real-time threat detection and prevention. While a retail store might not require such industry-grade security, small businesses that deal with sensitive information such as freelance accounting or financial management companies should consider taking on this investment.

  • Outsource your cybersecurity

Verizon’s 2020 Data Breach Investigations Report (DBIR)

Instead of trying to make sense of the cybersecurity world, you could hand over your security to a reputable managed service provider. Several IT companies offer Cybersecurity-as-a-service as well, and these could cap your costs while ensuring you get serviced by experts.

Implementing better security features will naturally cost you money, but this is an expense as necessary as your marketing or manufacturing outlays. After all, you wouldn’t leave your storefront unlocked at night, would you? So why leave your digital doors open?

Don’t compromise on your business’ safety; get in touch with an expert today to safeguard your business. If money is tight, then do get in touch with our team at Crest Hill Capital. A cash advance might be just the solution you are looking for.