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5 Reasons Why Merchant Cash Advance Works for Small Businesses

5 Reasons Why Merchant Cash Advance Works for Small Businesses

14
Jun 2021
24
Jan 2025

With COVID-19 vaccines being administered all around the world, it's only a matter of time that businesses resume their work in the field. While corporations will have little to no hurdles, it will be small businesses that will have to make more effort. You don’t need to be an expert to understand these issues in today's economy. Some help in reopening will allow any sort of company to see instant results if capital is invested and used effectively. This is where merchants cash advances come in. An MCA works very differently. You’re receiving funding from a financial solution business. However, the perk of getting an MCA is that you only have to pay it back from a percentage of your sales. If you aren’t making any sales, you won’t have to pay back anything. So, if that doesn’t sound like a reasonable enough argument to make you get an MCA to nudge your business in the right direction, let us continue. Here are five reasons why cash advances will work in our company’s favor.

Easy to Qualify

Today's economy makes it troublesome for businesses in terms of finance. Conventional loans have rigid requirements that are turning people away. Moreover, they take more time, and sometimes your request may be denied. Merchant cash advances are more viable as they offer a sum of money at a fixed rate, and are easy to qualify for, even for first-time owners. While bank loans require hours to fill out, these applications contain brief questionnaires, prioritizing output rather than processing information. Expand Office Space Upgrading your office will be one of the heftiest investments you’ll ever make. But, it’s a necessary one. If your office space no longer meets the requirements of your business, you have to move into something that’s more fit to your needs. However, it’s not cheap. Moving into a new office requires a ton of money upfront. An MCA can be a great way to complete the down payment and move into the new office.

Quick Funding

Traditional bank loans have an approval time for weeks, and it is not even certain if your application will get accepted or not. If you don’t want to get caught up in those waiting times, an MCA is the best option. Funds from an MCA could reach your account the same day as your application is submitted!

Works Despite Credit Score

There are cases when businesses are in a stable situation and may have a poor credit score. In such cases, qualifying for a loan is impossible as banks want a surety that you are a viable candidate for receiving money. A history of bad credit is a red flag that tells a bank you won’t be able to repay the loan. An MCA gives you a much reliable alternative for cases where credit scores are low. There will be some things that will change but you will still be entitled to receive a cash advance!

No Restrictions

With bank loans, there are a ton of rules and regulations that restrict you from spending your money on certain places. With an MCA, there’s no such limitations. You’re free to invest your advance into anything as long as it helps in the growth of your business. An MCA can help elevate your operation to new heights with greater flexibility and opportunities. If you’d like to learn more about obtaining a merchant cash advance for your business, 2M7 Financial Solutions is here to help. We offer merchant cash advances to businesses in all industries and of all sizes. Gain an edge over your competition and contact us today.

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August 19, 2021
January 24, 2025

5 Ways To Market Your Small Business On A Budget

Marketing is one of the aspects of your business that takes a lot of your revenue. Business owners are sort of blackmailed into spending too much cash just because they have to outweigh their competitors and sort of 'steal' customers away from them. That's how the world of business works. However, a small business is already short on funds, and they can't pour that much money into marketing without affecting operational costs. If you find yourself in a situation where you need to up your marketing game but don't have the funds to do so, you're at just the right place. Here are five things you need to know about marketing small businesses on a budget.

1.   Stay Active on Social Media

Social media is one of the best forms of marketing that you have, and it's totally free. A lot of businesses look at social media as a tool just for outreach. It's a lot more than a way just to communicate with your audience. Social media provides your business with access to millions of people all over the world. The best part is that it doesn't matter what kind of business you have. You'll find tons of customers through social media.

2.   Focus on Loyal Customers

Finding new customers is something that every business has to do to survive. You have to scale your business to grow substantially, and that can only happen when you have new customers. However, in an effort to obtain them, companies often overlook their current loyal customers. We consider that a huge opportunity being missed. You can offer rewards, dedicated customer support, and discounts to ensure that these people stay interested.

3.   Think of Local Communities

Many businesses can take advantage of their local communities for growth and brand recognition. The best part is that you can advertise your business at some charity events, major gatherings, fairs, etc.

4.   Reward Programs

Your current customers can be a gateway to obtaining brand-new clients as well. Reward programs are an amazing incentive that encourages people to recommend your company or service to their friends and family. Word of mouth drives an average of $6 trillion in revenue for businesses globally. That's more than enough incentive you need to start a rewards program.

5.   Merchant Cash Advance

If you're planning to ramp up your marketing efforts but don't necessarily have the budget on-hand to make it happen, there are many financial organizations in the market that provide merchant cash advances. These MCAs are a lot different as compared to standard business loans. Instead of having to pay the money back in a lump sum, you’ll be returning the money through a percentage of your profits.

Closing Thoughts

Marketing does work, especially when it's carried out effectively and with consistency. Many will argue that it's one of the most profitable and, if you can’t seem to get your marketing done on a budget, 2M7 financial solutions is here to help you. We offer merchant cash advance to businesses in Canada. So, if you need some extra cash to fund your marketing campaigns, give us a call today to learn more.

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March 30, 2021
January 24, 2025

How to Get Business Financing With Poor Credit

If you are looking to grow your business, then you may find it challenging if you have poor credit. However, there are a number of options that can help your business get the financing with poor credit. Here’s a look at the steps you can take to secure fencing for your business with poor credit.

1) Check your credit score

The first thing that you should do is know your credit score. If your credit score is below 700, then your credit will be considered subprime. Also, this can prevent you from the top business financing options. You can credit your credit score for free on Credit Karma. You can also request one credit report, per year, from the two major credit reporting agencies.

2) Know your options

Once you know your credit score, then you can explore your options. In fact, if you have a low credit score, then you will want to consider the following types of financing options:

  • Business credit cards - There are a number of business credit cards that allow customers with subprime credit scores. While these credit cards may have higher interest rates, they will allow your business to get the quick funding that you need.
  • Merchant cash advance - A merchant cash advance is an advance based on the credit card sales deposited into your business’s bank accounts. In short, a merchant cash advance can help you get access to your money faster for a small fee. Many businesses used merchant cash advance to gain faster cash flow.
  • Short-term line of credit - A short-term line of credit allows you to draw from a pool of funds. When you pay back the loan with interest, then you can draw from the line of credit again.

3) Create a business plan

If you are looking to secure a short-term business loan, it is a good idea to have a business plan. After all, the bank will want to know what type of business that you are in and how you intend to generate revenue. A well-organized business plan will increase your chances of being approved for a short-term business loan.

4) Have collateral

If you have any form of collateral, then you can secure a loan much more easily. Here are some types of collateral that can allow you to get the funds that your business needs:

  • Vehicle
  • Property
  • Inventory
  • Unpaid invoices
  • Cash

5) Find a co-singer

Finally, you can find a co-signer that can help you secure a loan or financing with poor credit. A co-signer can be anyone from a member of the family to a business partner. The co-signer should be aware that they are liable for the loan if you don’t pay back the principal or the interest.

Getting your business up and running

Bad credit doesn’t have to stop you from funding your business. At 2M7 Financial Solutions, we do not require a credit score to issue a merchant cash advance. Apply now to get a merchant cash advance today.

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October 18, 2021
January 24, 2025

5 Ways to Boost Your Business Cash Flow

A business in its prime has sufficient cash flow to carry out all the operations of the firm. When sales and profits are high, companies can take their guard off by increasing the expenses. When records are left unchecked and minimal attention is given towards the cash, bankruptcy becomes the fate of the business. When companies are progressing exceedingly, they need to pay extra attention to their affairs and the cash flow. Sustaining cash is one of the most common challenges that firms face. Therefore, they must exhibit vigilance in the maintenance of cash flow to progress optimally. So, if you’re looking to boost your cash flow and, in turn, boost your business, here are five ways to do just that.

Lease

Real estate, automotive, and machinery can be more expensive on full payment leading to delirious prospects. Lease payments are an effective approach for business. They can spare a portion of the total income and designate it to the lease payments.

Avoiding Complete Purchases

In the case of complete payments, companies may end up compromising their other practices. If profit exceeds the usual amount, then companies can use it for other developmental strategies instead of paying the entire purchase. They can open up further avenues from the supplementary profits.

Improving Receivables

On certain occasions, payables can exceed the receivables. When the payables are due before receivables, then cash flow becomes affected. In such a scenario, the probability of bankruptcy is high. Companies should analyze accounts payable and receivables. They should garner the receivables before the payables to pay off the debts, carry out the purchases, and stock the inventory.

Early Notifications

Notify the customers and clients of their payments and plan a strategy to manage the payables. Send out the invoices early and conduct electronic payments to ensure safety and accessibility.

Merchant Cash Advance

Merchant Cash Advances are one of the most underrated and efficient ways of maintaining the cash flow. It doesn’t just enable companies to sustain cash but also enhance their prospects. The principle of MCA dictates that certain companies give out money to those business that require investments. Such companies can use it to raise capital and execute payables. They can utilize the cash flow to function productively. The companies have to pay a certain percentage each month they generate revenue. In case of lower cash flow, they can skip the payment and release them later when they gain sufficient cash flow. Moreover, MCA providers also hand out funding to businesses with low credit scores. So, if a bank is turning you down for a loan, you still quality for an MCA and will receive the funds regardless of your credit score.

Conclusion

Maintaining cash flow can be daunting but specific protocols and funding options like MCA ensure that companies retain handsome amounts of cash in their organization. If you run a business and require MCA, then 2M7 is here to help you out. We’re a financial organization that was designed to help small to medium-sized businesses scale in the market. Give us a call today at 1-844-932-0418, and we’ll have your MCA sent to your account within the week!

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