When is the Best Time for a Merchant Cash Advance?

If you’re a business owner that’s looked into various forms of funding for a business, you’ve likely come across MCAs, or merchant cash advances. There are many different avenues of funding, each with different advantages and disadvantages, and MCAs are no different. For many reasons, MCAs could benefit your business, but many business owners end up confused as to the timing they should be taking advantage of. Here are some circumstances in which an MCA could help you best.

Regardless of why you need the funds, a merchant cash advance tends to have at least one big advantage: time. If you need funds quickly and can’t wait for your income to increase or for a bank to process a loan, an MCA can be processed quickly without a lot of hoops to jump through that you could encounter while pursuing a traditional loan. You shouldn’t need to provide capital, so you don’t have to worry about placing your assets at risk. You should also be able to secure an MCA even if your credit isn’t the best. Because of the repayment structure, you can rest easy knowing your payments will occur as your business brings in income, often through a small percentage of your sales.

If your business is new, or thriving and approaching an opportunity for growth, merchant cash advances can also be a great boost. These tend to be times where change is imminent, and last minute decisions or the implementation of new ideas can be difficult to get used to. These changes could also cost you money as your daily business operations shift or cease. A quick top up of funds can make a huge difference when things are moving quickly and need to be completed.

As you progress in your business, you will likely come across certain opportunities you didn’t plan for. For example, if you enter a busy season, you may need more staff and inventory for more hours than usual. You might run into maintenance issues with your location or decide you need to hire a more experienced professional, and an MCA can help you pay for those expenses in advance.

Whether you’re just starting out or have spotted a business opportunity, merchant cash advances can be great way of getting your business to the next level. This type of funding can be a quick, convenient option for those looking to avoid the stress of larger loans with strict payment policies. If you want a solution that’s fast and effective, some careful research can help you an MCA, so you can improve your business in the way that’s best for you.


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