So now I’m working for a merchant cash advance company (I do their marketing). During a recent lunch break I found myself eating at a small falafel restaurant down the street from my office. The food is good, but the restaurant is a total dive. They don’t accept credit cards either. Having managed restaurants in the past, I started thinking about what I could do to make this restaurant better and more profitable. I thought about remodeling, marketing, expanding the staff and menu. Then I thought about the money that it would take to do these things.
I thought about the business owner taking a merchant cash advance (no surprise there) before I remembered he doesn’t accept credit cards. My thought process went something like this;
This business would improve greatly with the much needed improvements and marketing.
I thought about our credit card advance service.
Oh, that’s right he doesn’t accept credit cards.
Probably the reason he doesn’t accept credit cards is that he doesn’t want to give a percentage of his profits to a credit card company.
Then I thought that if he did accept credit cards, his business would expand greatly and it would more than offset cost of accepting them.
Because of the increased business, he wouldn’t even feel the cash advance payback.
Once the Credit Card Advance is paid off, he will be making substantially more money.
Of course I went into much greater detail in my mind, but you get the idea. I really think that a merchant cash advance is a great service for many businesses. It’s funny I hadn’t heard of them before I started marketing them. I can see how a business can really benefit from them, especially if they have questionable credit (sometimes referred to as a bad credit business loan).
I can also see how a credit card advance can cause problems if not used correctly. It does happen sometimes. However, the vast majorities of businesses that have used a merchant cash advance has had a positive experience and get’s a credit card advance regularly as an integral part of their business success.