We are coming up on the end of the year, when businesses ranging from small nice retailers to trucking companies are making preparations to maximize sales and build up capital. The revenue earned in the last quarter of the year will give small businesses an advantage in 2020. Merchant cash advances (or MCAs) can help small businesses score big with year-end sales.
How MCAs Boost Sales
Throughout the last quarter of the year, businesses across all industries hold sales or give special offers to draw in new and returning customers. MCAs provide an infusion of working capital to cover advertising, inventory, hiring additional staff, or anything else small businesses need. This allows businesses to meet consumer demands without losing sales because they have run out of certain products. Using MCAs to purchase inventory ahead of the fourth quarter, as well as to ramp up advertising to increase visibility, can greatly boost revenue for small businesses.
MCAs Are Not Loans
One of the big advantages MCAs offer to small businesses is that they are not traditional loans, so they do not place any debt on the books. Repayment of a merchant cash advance is also flexible, so they do not place a strain on cash flow. MCAs are repaid from a percentage of credit card receipts, so businesses can maximize their sales, and sail into the next year with healthy capital reserves. MCAs also have no prepayment penalties, so if sales are high and you want to pay off the balance ahead of the terms, you can do so without triggering any hefty fees.
Qualifying for MCAs
MCAs are more accessible than traditional loans. There is no collateral required, and the amount of financing received is structured around sales instead of credit ratings. If a business accepts credit cards from customers for purchases and have an extant sales history, they meet the basic requirements for approval.
Nanaki Capital specializes in working capital solutions for small business owners. If you are making preparations for a big sales season to finish out the year, contact our team and as about our merchant cash advance program.