Common uses for merchant cash advances

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.
23/04/2020

No business can grow without a little helping hand every now and then, and with a merchant cash advance businesses can receive funds immediately. These funds can be used to strengthen and cement a place in the UK economy and help avoid financial struggles.

The money you receive in a merchant cash advance is your to do whatever you want with. The terms of the loan are subject to repayment plus a small percentage through your credit/debit card sales each day until the agreed upon amount is paid back. Here are some of the most common uses for merchant cash advances:

Payroll

Employing new staff is a vital aspect for small businesses looking to grow. By bringing in extra help you can increase the amount of products and services you make and sell and can help you bring in new customers. Unfortunately, it can be difficult to find the money to employ people, so a merchant cash advance can help provide the funds to make it happen.

Purchasing equipment

Investing in new equipment can help companies produce more, better quality products which, in turn, can help boost your profit margin. After all, no business can grow without investing in more equipment. With merchant cash advances small businesses are able to find a positive alternative to equipment leasing and other more unsecure loans.

Advertising

Even those with the best products and services can fail without proper marketing and advertising. In order to build a brand and get your name out there you will need a marketing budget, something that new business will be unlikely to have. With a merchant cash advance you can put in place an advertising campaign that includes anything from promotional material to a new website.

If you feel as though a merchant cash advance may be right for your business, compare offers with Quote Goat right now. If you are unsure, head over to our Business Finance section where we have a host of information on various alternative lending types from invoice finance to secured business loans.

 

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