Top Ten Things You Can Do with a Merchant Cash Advance

A merchant cash advance (MCA) which is a sale of your future credit or debit card receivables can be a great alternative to a bank loan and much faster when you need cash now. Extra cash flow in your business is always necessary and here are the top 10 things you can do with a merchant cash advance today.

1. Upgrade Equipment

Your business may grow more quickly than you can keep up with. Upgrading equipment can help you keep up with order demand and keep your business growing.

2. Cover Operating Expenses

Even if you’ve planned ahead, unexpected costs can reduce cash flow and make it difficult to pay salaries or buy supplies. An MCA gives your business the working capital it needs.

3. Pay Employees

Most businesses issue payroll a week or two after work is completed. However, if you are experiencing cash flow issues, you may not have the money in the bank to cover payroll. If you don’t pay your employees in a timely manner, you can be sure they’ll seek other employment. An MCA can help you retain people you’ve spent time and effort training.

4. Pay Vendors

Businesses that get regular deliveries of supplies, such as restaurants are particularly vulnerable to their vendors. If you don’t pay those vendors on time, they can and will stop deliveries. An MCA can give you the time to pay your vendors and earn credit all while you’re waiting on those credit card receivables to come through.

5. Pay Taxes

As a business owner, you are typically required to withhold taxes from your employees’ paychecks and send that money to the CRA. However, some employers miss sending in these payments on a regular basis and can get in serious trouble that can cause penalties to accrue. Pay those taxes and get the CRA off your back with an MCA. The MCA is then paid from a percentage of your credit and debit card receipts, which allows you to pay back the advance without straining your finances.

6. Prepare for Holiday Sales

For many businesses, the holidays are the time of year when the company shifts from being in the red into a profit. The holiday season is much longer than it used to be and many companies start planning in the late winter and spring. If you do not plan and end up without the supplies to meet the higher demand for seasonal shopping, you may never escape the negative column. An MCA can allow you to order the extra items needed to meet holiday shopping needs.

7. Advertising

Advertising costs can add up quickly, or you may have forgotten to budget in money for extra promotions. An MCA can provide the funds that allow you to add advertising such as vehicle wraps, a directory listing, newspaper coupons and even time on the local radio station.

8. Take Your Business World Wide

Once your business grows to a certain point, you may find that the next logical step to grow your business farther is to put it up on the world wide web and take advantage of international sales. However, creating a merchant based website can be costly. An MCA can provide the funds needed to expand your business and take it to the next level.

9. Redecorating

If you are in the restaurant industry, for example, you may have purchased a building in need of upgrades. However, your décor, theme and curb appeal are the first impressions of your customers. An MCA allows you to redecorate and make your establishment look fresh and new. People will want to dine there and bring their friends and family along.

10. Purchase Software

They say that time is money, so having the latest and most efficient software can make a huge difference in the day to day running of your business and how much time you spend upgrading accounts and processing sales. Use an MCA to upgrade or purchase new software that will help you manage your time better and smooth out processes.

 

 

Disclaimer: A merchant cash advance is the purchase of future credit card or debit card sales and is not a loan product.