8 Ways a Cash Advance Loan Can Help Your Business Grow


Jeffrey Bumbales

A merchant cash advance might be your best option if you need quick access to cash. It’s easy to apply for, without the need to scrounge up all sorts of documents proving your financial health and the history of your business. You don’t have to have stellar credit or collateral, unlike traditional loans.

Approvals are typically made within a day or two, with cash deposited into your account shortly after. It just doesn’t get any easier than a merchant cash advance through Credibly.

How Does a Merchant Cash Advance Work?

This type of loan provides you with a quick cash advance that’s usually approved and funded within a 48 hour period. You repay the loan by agreeing to allow a certain percentage of your future credit card sales deducted until the total amount has been paid back.

A factor rate is applied to your credit card sales to calculate how much is taken from those sales. This rate is then multiplied to the advance amount you receive to identify the amount of money you need to pay back.

By working with this factor rate, the amount you pay from each credit card sale will fluctuate. During busy months where credit card sales are higher, more will be repaid. On the other hand, you’ll be paying a lower amount during slower months.

8 Scenarios Where a Merchant Cash Advance Can Help

There are all sorts of situations where having access to a merchant cash advance can be a real blessing:

Buying Equipment

At some point in any business, it’ll be necessary to buy or replace various pieces of equipment. But if you haven’t got the funds to buy such equipment, you could apply for a merchant cash advance to help with these finances. Whether you need computers, telephones, vehicles, machinery, or any other type of equipment, it helps to be able to gain quick access to funds in the form of a merchant cash advance.

Stocking Up On Inventory

You need inventory on the back-end ready for customers to buy. Making sure your inventory levels are healthy is important.

There’s no point making a sale if you haven’t got the inventory to provide. To keep inventory stocks high, you can apply for a cash advance loan to get the money you need for such costs.

Paying Off Surprise Expenses

Anything can go wrong in the world of business. In fact, it’s rare for things to go smoothly and without a hitch day in and day out throughout the life of a business. Production breakdowns, slow sales, theft, natural disasters and other scenarios can happen, causing unexpected costs to suddenly spring up. If you’re not prepared for a rainy day, a business cash advance can help bail you out.

Meeting Tax Obligations

Being in business means you’re not collecting a regular paycheck from an employer. There are no taxes automatically deducted off your pay. Instead, you may end up having to pay a lump sum in taxes at the end of the year, which can be an enormous amount if sales were strong. If you didn’t properly plan and budget for tax time, a merchant cash advance can help make sure Uncle Sam is paid on time, and in full.

Increasing Advertising to Attract More Customers

When it comes to making money in business, the customer is your most important asset. But in order to attract customers to your business, a little marketing is needed. Just like anything else in business, advertising costs money.

Don’t wait months or even years before you’ve got enough funds to pay for a marketing campaign that can start driving sales through the roof. By taking advantage of a business cash advance, you can realistically cover the costs of advertising within a short time after sales start rolling in.

Covering Payroll

Maybe you had a slow month in sales, or perhaps your customers’ credit card payments haven’t come through yet. Regardless of the reasons for your short cash flow, one fact still remains: you need to pay your employees. Without the hired help, the business will suffer. If you need a little help covering payroll, a merchant cash advance could be the perfect option.

Taking Advantage of an Opportunity

If opportunity knocks, it usually only does so for a brief moment. If you don’t capitalize on the opportunity when it presents itself, it could disappear as soon as it showed up. Many times such opportunities require money. If you don’t have the funds to take advantage of the opportunity, consider it lost.

Perhaps you’ve been given an amazing deal on products and inventory at a huge discount, but don’t have enough cash on hand to cover this expense. With a merchant cash advance, you can get access to the cash needed to afford these opportunities.

Expanding Your Establishment

If business is booming and you’re ready to expand, now might be the time to either enlarge or renovate your current space or move to a new location that can handle your busier company. But renovations or increased rent might be out of your financial reach right now, which essentially puts a hold on your expansion. By accessing quick funds from a cash advance loan, you can afford to move up in the world of business.

Getting Started With A Merchant Cash Advance

Need cash fast, but don’t have good credit or any collateral to satisfy the bank’s criteria? No problem. At Credibly, we offer small business owners the quick cash they need, without the hassle. Approval is fast and funds are deposited in your account in as soon as 48 hours.

To get started, fill out our online prequalification request form. Submitting is free and easy and will not negatively affect your credit.