When is Taking a Merchant Cash Advance Right For Your Business?

Merchant Cash Advance

Merchant Cash Advances (MCAs) are simple, quick, hassle-free alternatives to regular bank loans and have gained a substantial amount of traction in recent years, especially  for SMEs who may not always meet the requirements for other sources of additional business funding. Think of them as a purchase of future income, with flexible repayments deducted directly from your merchant account. Here are 3 common reasons businesses will apply for and use merchant cash advances:

Growth is Outstripping Demand

It’s unlikely that your company is growing without a high demand for your products or services. Having funding to meet the demand while you’re going through your growing pains is essential for maintaining a reputation of reliable service. However, SMEs often find that they fall short on funding and will turn to options like MCA’s due to their nature of being uncomplicated, fast solutions.

You Need Breathing Room During The Unpredictable Moments

Unpredictable situations are, surprisingly, predictable. They’re going to happen. There’s no way around them. However, having access to additional capital during those times of panic is going to make the bounce back feel somewhat effortless. With the help of MCAs, you’re less likely to make hasty decisions that could lead to more problems, and can give yourself a little more room to breathe. Calmer decisions lead to better outcomes, and easing the financial strain of emergency situations will lead to you taking the right steps to recovery. 

You Need to Expand Your Workforce Quickly 

With great business growth comes great responsibility. While your business is expanding, and the demand for your products and service increases, you want to ensure that you can physically keep up with that growth. You’re likely going to need to expand your team. Whether it’s outsourcing marketing assistance, or bringing things in house, you need the capital to do so. Utilizing cash advances in these instances may be the solution to keeping things running smoothly.

As we’ve said before, it’s always of the utmost importance to do extensive research into the best funding options for you and your business. There are countless reasons to seek alternative business funding, and our goal at GroWise is simple, to get your business funded and growing, fast. Explore our website, get in touch with us and apply here.

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