You dream of lasting business success, but to achieve it, you’ll need to grow beyond your current boundaries. Effective expansion requires funding, and taking out a merchant cash advance is a great option for moving to the next stage in your corporate journey. Here are five ways to use cash advances to drive your enterprise forward.
1. Purchase Inventory
Business isn’t always booming, but for retailers, having enough stock to meet demand is vital to sustained growth. Using cash advances to selectively purchase inventory might make it easier to stay profitable.
Use merchant cash advance funding in advance of big sales drives, like the end-of-year holiday season or local events. These strategic inventory purchases may help you fill your coffers in preparation for low-volume months to come.
2. Launch Advertising Campaigns
Funding an upcoming marketing drive with a merchant cash advance might earn your company publicity without forcing you to sacrifice quite as much profit. Many companies spend up to 30 percent of their annual sales revenues on advertising. Enterprises that haven’t yet made names for themselves may find that cash advances are ideal tools for spreading their reputations as they try to work out sustainable business models.
3. Upgrade Your Equipment
When it comes to your business equipment, depreciation isn’t the only challenge that you’ll face. In addition to losing value with time, computers, machinery, tools and other vital gear also loses efficacy.
Although implementing a sound preventative maintenance program is definitely a must, upkeep only goes so far. Eventually, you’ll have to replace your equipment instead of simply refurbishing it. Merchant cash advances can provide you with the necessary means to put newly upgraded hardware to good use so that you don't fall behind your rivals.
4. Hire New Staff
Exhausting your staff’s capabilities isn’t necessarily a sign of failure. When your workers can no longer keep up with demand, you either need to overhaul the way you do business or hire more people. In the latter case, using a merchant cash advance to fund a salary, sign-on bonus payment or even new onboarding training programs is a good way to attract superior talent.
5. Renovate Property Assets
Regardless whether you’re a modern online business or a traditional brick-and-mortar company, you need facilities that support your continued activities. Funding material renovations, inspections and other facility improvements with merchant cash advances might help you improve your capacity to do business. It could also boost your public image to instill consumers and partners with heightened confidence.
These are just a few of the ways that growing companies use merchant cash advances to maintain their forward progress. As with any other endeavor, they require business owners to conduct in-depth financial analyses and devise appropriate debt management plans. To learn more about securing the working capital that your expansion demands, contact an Everest Business Funding specialist now.