Short Term, Long Returns

Years of working with our merchant partners to help them obtain the working capital they need has taught us a lot about what makes a good candidate for a merchant cash advance.

While the short repayment terms and less stringent criteria to obtain our financial products may seem like a great idea for a cash strapped business, we urge our merchants to look deeper-and to decide if the money they will help their business past the repayment period. The expenses incurred from taking a merchant cash advance must be taken seriously, and can be a determining factor in other financial decisions regarding your business.

Most of our merchants come to us in need of a short term solution that will create long term returns. Purchasing a new piece of equipment or inventory at a steep discount, hiring a staffer to increase sales, paying for marketing services or materials are all situations that come to mind. Each of these creates an opportunity for businesses to grow and expand past what the initial funding amount was, and to continue to benefit from the money long after it is repaid.

When looking at a merchant cash advance, we ask our merchants to consider the following factors:

1. Will the funding help me to grow or expand my business?

This type of funding works best for businesses that need a solution to cover a one time, revenue producing expense that will help their business grow moving forward. While the money can be used for any purpose, we strongly encourage merchants to think about how the money will help their business before coming to us for funding.

2. How will my other business expenses be affected over the repayment period?

Since the repayment amount comes out of daily credit card intake or ACH debit, it is important that business owners plan for the difference in operating costs. There will be a smaller amount coming in as the debt is repaid, which needs to be accounted for with your day to day operations.

The booming alternative finance industry has helped many business owners to realize their goals with short term, unsecured working capital. Money that has been used to build and expand their businesses quickly and repaid over a short period of time. By using your funding the right way, the dividends can far outweigh the expense of the funding, and can help businesses grow in the long term.