Using a Merchant Cash Advance for Seasonal Sales Periods
Certain businesses will go through seasonal periods where they get more business than usual. Typically, this time of year occurs in the summer when kids are out of school and more families are going on vacations. You can expect a lot more revenue during this time of year. However, you will also need to spend more in order to take full advantage of the season. You can prepare for the upcoming summer months by taking out a merchant cash advance to enhance your business operations.
The great thing about an MCA is that you get access to money right away. There is no need to wait for months on end for your funding to come in. You apply and in a matter of days, you get cash. This can be extremely beneficial if an emergency comes up that you need to deal with promptly or if you just need some extra cash flow for the time being.
Another advantage to this type of loan system is that there are no penalties for paying back your loan early. It might sound crazy, but some lenders actually penalize businesses for repaying a loan too soon. You will not have to concern yourself with that if you acquire a merchant cash advance. This allows you to pay it back whenever it is most convenient for you.
Many businesses look into MCAs because the acceptance rate is so high. The reason for this is that lenders do not look at credit history. You also do not have to worry about putting any of your business assets up as collateral.
Finally, the last reason to look into an MCA is the fact that repayment is made simple. The money used to pay back your cash advance is taken out of your company’s sales for the day. Therefore, if you make a lot of money for a given day, you would pay more of the loan off. The same principle holds true if your business makes a little less money. If sales are down for a given day, then you would pay less. This is great because you never have to worry about paying more than what your means allow.
Whether you need to some extra funds to hire a larger staff or stock new items, there are plenty of reasons why getting a merchant cash advance is advisable. For a small business, seasonal periods are an opportunity to really grow and branch out, so do not let this time of year go to waste.