5 Reasons Why Successful Businesses Also Borrow Money

There's a huge misconception in the world of business. People tend to think that if a company (that's not a startup) has to borrow money, it's not successful. Yes, in certain situations, you do need some capital to get up and running from a few bad months. However, usually, it isn't bad for your company. It can be a huge boost for your business and take your sales to a new height that you didn't know existed. Here are five reasons why successful businesses needs to borrow money.

Meet Consumer Demands

If you're running a successful business, you're going to scale over time. Your customers will increase, and your current production capacity won't meet your future demands. Scaling is an important part of the journey, and if you don't speed up production, the sign that says 'out of stock' will run your enterprise into the ground. Taking a merchant cash advance (MCA) could be a great way to upgrade equipment and start meeting consumer demands. It does cost you money upfront, but in the long run, it'll boost your profits tenfold.

Stepping Away from a Rough Patch

We mentioned COVID-19 a while ago, and it is a major reason why companies need to be open to the idea of borrowing money. Millions of businesses globally shut down because either their services weren't required by the public or they couldn't maintain enough profits to stay above water. If your company struggled to find ground but still made it to the early post-COVID era we're in right now, you're lucky. However, things might not be such food to you if you can't get yourself back to a certain level of stability. By taking a merchant cash advance, you might be able to hire new personnel, find new contractors to work with, spend more on advertising, and get back to work!

Making Payments on Time

Even some of the top businesses in the world need raw materials to make their products. And, most of the time, payments from customers take months until they're in the pocket of the finance department. To make sure you make all your payments on time, an MCA will help you keep the wheel spinning, and since you already have the money needed to pay it back, you're good to go.

Keeping Up With Competition

No matter what you sell, there's probably some other businesses out there that has been in the same industry for longer than you have. This means that they have a stable grip on the market and have a better cash flow to scale their business. Taking a merchant cash advance is like a quick hack to catch up to your competition and speed up sales much quickly as compared to the other, more traditional routes.

Reducing Personal Investments

If you’re running a small to medium business, it’s always tempting to put in all your personal savings to keep the business afloat. Building a cash reserve is a good way to keep financial problems at bay. However, a recommendable way to save yourself from the pitfall of personal investments is to borrow money. By bringing in the cash you need from other places, you’re keeping your bank account safe and sound.

Closing Thoughts

The word 'debt' is not the final nail in the coffin for your company. With proper planning, it can help you reach heights that you never imagined. That is where we come in. 2M7 Financial Solutions is a company that offers merchants cash advances, which you can return from a specific percentage of your sales. If you're looking for a reliable company to help you outshine your competition, request a quote, we will be happy to assist you.

2M7 Financial Solutions is proud to announce its annual Forward Thinkers Scholarship to support Canadian post-secondary students in Business, Finance, or equivalent programs who are forward-thinking individuals dedicated to making a difference in their fields. The selected recipient will have demonstrated excellence in their studies and will receive $2,500.00 CAD towards their continued success.“

Students are the future of our industry and we welcome the new perspectives and fresh ideas they bring to the table,” said Avi Bernstein, CEO of 2M7 Financial Solutions. “We’re proud to support passionate and talented individuals in the pursuit of their education, and we welcome all Business and Finance majors to apply for an opportunity to receive the Forward Thinkers Scholarship in 2022.”

As one of Canada’s leading merchant cash advance providers, 2M7 Financial Solutions helps Canadian small and medium businesses secure the funding they need to accelerate their growth. As a client-centric company, 2M7 values the entrepreneurs who are the backbone of the Canadian SME economy and believes in empowering business owners and enabling them to achieve their full potential. Similarly, 2M7 believes it’s important to give students the opportunity to excel in their fields and bring cutting-edge ideas that will help drive the industry forward.

The selected recipient will encompass 2M7’s values of innovation and demonstrate a genuine desire to make innovative strides within their respective field.

To learn more about the scholarship or to start the application, please visit the Forward Thinkers Scholarship page here.

Applications will be accepted beginning June 1^st, 2022, and the deadline to apply is 11:59 PM on August 31, 2022. Winners will be announced in the Fall of 2022.

About the “forward thinkers scholarship” by 2M7

The ”Forward Thinkers Scholarship” by 2M7 is an annual scholarship program, established in 2022 by 2M7 Financial Solutions. It recognizes outstanding students who are pursuing or entering full-time studies in Business, Finance, or an equivalent program. For those interested in applying for the 2022 scholarship, please make sure to follow 2M7 on Facebook for further announcements.

Funding is the only way to turn startups into successful businesses. Getting funding is easier said than done. However, it’s a fact that you need sufficient money to get your business to the next level. Investment and funding are required to raise the necessary capital to either initiate or run a business. The working capital is the option on which companies rely for the smooth running of affairs and uncalled crisis. Funding coupled with motivation, determination, and brilliant ideas can kick start the business off the ground. Lack of proper and timely funding can collapse business strategies and decrease capital, which ultimately causes failure. If you’re wondering why businesses consider looking for funding, you’re at the right place. Following are some reasons due to which funding becomes essential for companies.

Development

Growth and development are the foremost motives of a business before seeking funding. Acquiring new clients, local businesses, and marketing to improve outreach are all the prospects of growth. Establishing additional branches and expanding services is also the result of the funding sought for the sake of growth.

Working Capital

Another significant reason for obtaining fundings is working capital. Working capital is the monetary assets that provide the companies with sustainability. Managing regular affairs and retaining the quality of services are done through the working capital. It can be used to stock the inventory and carry out successful purchases by efficient expenditure. Insufficient working capital can cause detrimental effects to the business in the longer run. The current affairs and prospects depend on the working capital, which is provided through funding.

Acquiring Assets

To hold a firm position in the market and among the competitors, businesses need to purchase assets. Eliminating the competitors in the market is the feature of having more assets. Businesses can emerge out as a winner when they become the sole provider of a service. Companies can either buy shares or completely acquire other businesses. Assets not only strengthen the company but also enhance its market value.

Initiating New Ventures

Companies use funding to plant new ventures. These endeavours can promote the business and increase its progress. To conduct these strategic ventures companies, need ambition and funding. They can articulate ambition in their employees, but for funding, they need help.

Boosting Startups

Funding is vital to support startups in the fierce market. Startups usually have scant resources that can soon become insufficient, leading to a business catastrophe. Startups need financial help and investments to accomplish their goals and thrive among the competitors.

Getting an MCA

Companies can find investors that either work independently or with an organization to gain the required funding. They can also opt for loans from banks. However, the much better alternative is a merchant cash advance that focuses on the growth of a business. Companies prefer MCA as the conditions of the loan are appropriate to their predicament. The best part about getting an MCA is that paying it back is extremely convenient. You’ll only be paying back a specific percentage of your monthly earning. And, if there’s a month where you don’t generate revenue due to whatever reason, you won’t need to pay the finance company back anything. Receiving timely fundings can save companies from derailments. If you’re looking for a financial organization that can get you the resources you need to boost your business, 2M7 is just the company you should work with. We’ve helped hundreds of companies like yours in the past with our incredible 97% approval rating. We offer merchant cash advances to businesses in all industries and of all sizes. Gain an edge over your competition and contact us today.