If you’ve received a merchant cash advance or are considering getting one, there is one thing that you have probably noticed; the money does not come cheap.
Chances are; you received a cash advance because you were turned down for a loan or that you could not wait the amount of time it normally takes for the bank to process your loan. Either way, you need to make the most of your investment.
It might seem pretty obvious to say that you should not use your cash advance to pay for a vacation or to purchase a new car, but you would be surprised at how often this is done. Needless to say; spending your merchant loan frivolously is a really bad idea.
Some of the less obvious ways in which businesses squander their cash advance are not staying on track and keeping records of your expenditures or not spending it at all. You’re paying a premium for that money… spend it.
Some of the best examples of spending include;
Expanding your marketing to reach new customers: Marketing can be very expensive, but it such a necessary evil.
Fixing or replacing old equipment: Nothing slows a business down like old, faulty equipment
Purchasing inventory, especially at volume discount: You would be surprised how much you can save when you purchase in bulk.
Remodeling your business: Remodeling your business could be that greatly needed breath of fresh air to attract new customers.
Getting out of a financial hole: If you find your business is getting further and further behind, getting the immediate funding that a merchant cash advance provides can literally save your business
If you haven’t thought about getting a merchant cash advance before and you just happen to be reading this article, consider this;
· Merchant loans do not require collateral
· They do not require a high credit score
· You are funded in days rather than weeks
· The payback terms are flexible and adjust to your daily sales
What could your business do with 10K, 20K, 50K or half a million dollars? It could make all the difference in the world in the competitiveness of your business or simply bail out a sinking business. Either way; if used properly a merchant cash advance can take you there.