Sources of funding are essential to the success of your business. There are lots of ways to get financing for your organization from investors to traditional loans from a bank. One option for your organization may be a merchant cash advance. This type of financing looks at the money you are expected to earn in a month to determine how much you can borrow.
What Is a Merchant Cash Advance?
A merchant cash advance is a way to get financing for your organization. The financial institution gives you funding against money you expect for payments from customers. When you receive the payments from customers, you pay off the merchant cash advance to the financial institution. The amount of funding provided to you depends on the income your organization earns in a month. Typically, there is a fee paid to the company providing the advance rather than paying interest on the advance.
Getting a Merchant Cash Advance
Getting a merchant cash advance is different from getting other forms of funding, such as a traditional business loan. Many financial institutions offer merchant cash advances, and they have clear application processes in order to obtain them. Each financial institution has its own application process and procedure. The best course of action is to speak to the lender about your interest in a merchant cash advance and get application information directly from them.
Using Your Merchant Cash Advance
Once you get approved for a merchant cash advance, it’s important to use the funding wisely. It is not free money. Instead, it is an opportunity for you to continue moving forward with your business goals. Here are some ways you can use the advance to the benefit of your company:
- Expanding marketing efforts
- Purchase products to prepare for a busy season
- Expand your staff
- Work on renovations and redesigns
- Expand into a larger or second location
Whether you need financing to get through a busy sales season or you have goals to reach the next level of your organization, a merchant cash advance can be a good option for you. With an advance on your company’s revenue, you’ll be ready to do what’s needed to be successful.