5 Reasons to Apply for a Small Business Cash Advance


Minyang Jiang

If you’re like other small business owners, you’ll need a sizable amount of money from time to time to help fuel your success. But what if you don’t have the cash?

With an increasing number of opportunities to obtain a loan you definitely have the ability to get funding quickly and easily. One such opportunity is a small business cash advance.

Reasons For a Business Cash Advance

With business cash advances, the money you’re given is paid back to the lender, plus a fee, by allowing the funding provider to take a certain percentage of your credit card sales every day until you’ve paid back the money in full. It’s important to note that a small business cash advance isn’t exactly a loan – it’s more of an arrangement where the lender buys a portion of your future credit card sales. You can use the funds for virtually any business need in order to relieve your financial stress:

1. Purchasing Equipment

Could a new vehicle, computer, oven, or printing machine come in handy? Probably. But what if funds are low? The truth is, such equipment is critical to the success of your business. If you’re a baker, you have to count on your kitchen supplies. If you’re a contractor, you depend on your tools. You get the idea. Every business and industry has its own unique needs.

Money needed to pay for the purchase of equipment for your business could help boost your profit margin. A business cash advance can provide you with the fast cash you need to make such purchases. Plenty of business cash advance clients have used their funding as a stress-free alternative to equipment leasing or difficult bank loans.

Whatever type of business you’re in, using a merchant cash advance for equipment is a great option.

2. Covering Employee Payroll

If you’ve been running a one-man show, perhaps a few extra bodies could come in handy. Not only would added employees help take the load off your shoulders, they can also be a critical component to you expanding your business and increasing your products and services. A few extra hands could help you sell more, improve efficiency, and even bring on new customers.

But if you haven’t got the capital just yet to pay for a couple of extra employees, using borrowed money to cover their wages could be the answer. And if you’ve already got employees under your wing but don’t have the capital to put towards their payroll one month, you could use a cash advance to help cover their paychecks.

3. Stocking Inventory

Buying inventory is among the more common uses of a small business cash advance. You need to have your goods in stock in order to satisfy customers’ needs and remain successful. As such, it makes total sense to invest in the necessary inventory so you always have what you need on hand to meet clients’ orders.

You can use your business cash advance to cover funding for inventory and pay your suppliers immediately with no concerns. Small business cash advances are especially well-suited for stocking up on seasonal inventory and products that are in high demand.

4. Marketing and Advertising

Your business could be the best in the industry, but if no one knows about it, your profits will surely suffer. That’s why marketing and advertising are so important to help get your name out there and build your brand. But along with such marketing campaigns comes spending money – which you might not have on hand. You can use a merchant cash advance to cover these expenses, which can include paying for promotional materials, building a website, and so on.

5. Expanding the Business

If you’re already enjoying a great deal of success, good for you! Now might be the perfect time to start expanding your business to realize even greater levels of success. And a chunk of change might be just what you need to really help your business take off. If expansion is on your mind, a business cash advance can be just what you need to make it happen. Maybe you want to renovate and expand the unit you’re already in or move to a larger location. Regardless, a merchant cash advance can be the financial cushion needed to make it happen.

At Credibly, we understand the financial needs that small businesses face on a regular basis. That’s why we’ve extended a helping hand to small business owners just like you to find out what funding options are available to meet specific business needs. To get started, pre-qualify