Top 3 Reasons to Use a Merchant Cash Advance

A merchant cash advance is a loan against a business’ future debit and credit card sales. If a company is in need of cash, it can take money out against its anticipated future profits. This might seem risky, but there are many reasons why a business might need to do this. Here are the top three.

  1. The Company Has Hit an Unexpected Rough Patch

It’s common business sense to anticipate losses, even when the profits are consistently good. Any Fortune 500 entrepreneur will tell you to always expect the unexpected; otherwise, you might be closing your doors before they are ever opened.

Many companies hit rough times due to circumstances beyond their control, however. Whether an unruly blizzard kept your shop’s doors closed for a week or more, or you were hit with a lawsuit that didn’t turn out the way it should have, a merchant cash advance can give you the operating cash you need to keep, well, operating.

  1. You Need to Grow

Your business is taking off by leaps and bounds, which is great, until you realize that you haven’t had a day off in, well, you don’t know how long. Another piece of wise advice Fortune 500 business owners will tell you is to balance your professional and personal life. Investing all of your time and yourself into your business will only result in you being miserable and shaving years off your existence.

Still, hiring additional personnel takes money, and this is where a merchant cash advance can come to your rescue. If you take a loan out against your debit and credit card sales, you can bring more people on board to sell more product which will increase your profits and give you more precious time with your family and friends.

  1. You Have a New Product But No Money to Manufacture It

You have the designs for your Next-Great-Thing II, but you don’t have cash flow to put it into production. Your Next-Great-Thing I sales have run their course. What do you do now? You take a loan to finance the production of your new product. Not only can you use the projected product sales to support your financing request, you can also back the loan with your credit card sales once Next-Great-Thing II hits the market.

A merchant cash advance is also a wonderful way to finance the production of your new product when don’t have the funds on hand to begin your manufacturing. This helps to put your new products out there and grow your business to even greater heights once the sales have paid back the loan.