5 Advantages of a Merchant Cash Advance

Extra financing a common problem for small businesses. Maybe you need to hire an employee or you require additional equipment to manage incoming orders. Whatever the case, you need capital to keep the business not just running but growing too. There is the traditional bank loan, but you’re not sure you’ll qualify. Maybe your application was rejected. Now you’re wondering what alternatives you have. If you’re looking for alternative financing options for small business, then check out these choices. One of them may be the right fit for your business.

Check Out a Merchant Cash Advance

The first alternative financing option to consider is a merchant cash advance, or MCA. This is different from a loan, because the lender looks at your future sales. They examine your past credit card sales to determine trends in the business. They use that information to estimate your likely future sales. Then they make you an offer for a cash advance. The MCA offers more flexibility than a traditional business loan, which makes it more attractive to small businesses. Your payments can fluctuate with your actual sales. If you do more credit card sales in a month, you’ll pay your advance back faster. If you have a bad month, your payment will be smaller, which can take the pressure off your business.

Think about a Line of Credit or Credit Card

A line of credit or business credit card are flexible options. These financing solutions are known as revolving credit. That means you can use them, in full or in part, to fund pretty much whatever your business needs at the moment. You can then pay them back as possible. As you pay down the line of credit or credit card, the funds become available for you to use again. This could be a great solution for a business with ongoing credit needs or one with some small cash flow issues.

Consider a Microloan

If you only need a small amount of money, you may be turned down for a business loan through the bank. That’s because institutional lenders tend to make big loans. They’re more lucrative for the lender. One option you have is a microloan. Microloans are typically offered by online lenders or other businesses, not big institutions, so do your research and choose a lender that works for you.

Look at Peer-to-Peer Lending

Yet another option you have is peer-to-peer lending. This could be a loan from a colleague or it might be run through a P2P lending platform. In the business world, there might be business-to-business, or B2B, lenders as well. These lenders can typically make you a better offer than an institution, and they may be more willing to finance smaller loan needs. You can usually find them online.

You Have Plenty of Options

As you can see, there are plenty of financing options available for small business. If you’ve been turned down for that bank loan, don’t fret. You can still find the funding you need. Is a merchant cash advance the right solution for you? Get in touch with the experts, and get the funds you need today.

The business world has been turned upside down in the last few months, which has led to many questions for business owners. One of the most pressing has been about finances. In the current global climate, you may wonder what options you have to keep cash flowing. As it turns out, you have quite a few choices. The question is more about which options will work best for your business. There are quite a few reasons merchant cash advance and working capital loan could be the right fit.

What is Merchant Cash and Working Capital Loan?

‍Merchant cash and working capital loan refers to business financing options available to merchants on the basis of their future sales. It includes tools like merchant cash advances.A merchant cash advance, for example, is estimated on your future sales. The lender offers you cash to help you keep the business operating by estimating what your future sales are likely to be. Unlike a business loan, this option can be quite flexible as a result.

Why Choose Merchant Cash and Working Capital Loan?

‍Why are options like merchant cash advances so popular? One reason is that they provided the flexibility small businesses need.Since the advance is estimated on future sales, you pay the advance as you earn those sales. That means your payment can vary. If you have high sales, you can pay the advance down faster. If your sales are low, you won’t have to struggle to meet a high payment.The amount of the advance can also be variable. It’s also a great option for businesses that need ongoing cash injections. It also works for newer businesses or businesses that need smaller loan amounts.If any of this sounds like your business, then it could be time to discover what a merchant cash advance can do for you. Get in touch and find out if this option fits your business’s needs.

And The Winner Is...

The results are in. This year’s winner of the 2M7 Forward Thinkers Scholarship is Claire O’Brien. As a member of The University of British Columbia’s Sauder School of Business, Claire was able to overcome stiff competition in this year’s contest. To do so, Claire not only demonstrated a strong performance in her academic journey thus far, but also clearly  communicated a keen interest to harness the knowledge she acquired to this point, to succeed in the world of business as she moves toward her professional goals. Claire exhibited the enthusiasm, and aptitude that 2M7 Financial Solutions’ CEO, Avi Bernstein was looking to reward, and intended to encourage with the creation of this scholarship opportunity.

“Each year, university students face multiple challenges in their pursuit of their academic goals; and these stretch far beyond the classroom. Post-secondary schooling is extremely expensive and places a significant financial burden on those who attend, which can potentially negatively impact the studies of these students as they see to the financial obligations that arise with school funding. That is why I made it one of my goals to help lessen this burden: these students have enough “on their plate”; I want them to focus on what they are paying to study not on how they are going to pay for it. Claire’s essay not only exhibited her potential for business success, but also showed me a character that the 2M7 team strives to promote when we do business. Congratulations, Claire.

The 2M7 Forward Thinkers Scholarship is an annual scholarship that is available for post-secondary students studying in a business related field; and offers the winner a reward of $2,500 so they can better manage the expenses of their schooling. This year we had another strong applicant pool; and we encourage those not selected this year, to re-apply during next year’s contest, for their chance to get a generous amount of financial assistance. We at 2M7 would like to thank all those who participated in this year’s contest; and we wish all those that did decide to vie for this scholarship all the best in their future endeavours.