2M7 Announces 2022 “Forward Thinkers Scholarship” for Business and Finance Students in Canada

The great majority of small businesses go under because of cash flow issues. You know the importance of cash flow for that reason. That doesn’t mean you don’t face seasonal cash crunches.Seasonal cash flow struggles are quite common, even among established businesses. You can take the strain off by employing these five effective methods of solving cash flow challenges.

Know Your Problem Seasons

The first step in combating cash flow challenges is know your problem seasons. For seasonal businesses, this may be obvious. If you run a golf course, you might find cash flow tightens up during the winter. If, by contrast, you have a ski club, then winter could be boom season for you.Knowing when you’re most likely to run into trouble can help you plan for those dry spells more effectively.

Shift the Timing of Financial Commitments

Once you know when your cash crunches are most likely to happen, you can work on scheduling around them. Try to shift any major financial commitments to other times of the year.This might include adjusting when you order stock or how you organize your tax year. A golf course may not want to make a major tax payment at the end of April, because funds are already tight.You may not be able to move every financial commitment, and that’s fine. By shifting some earlier or later in the year, though, you can make all your obligations easier to manage.

Offer Incentives for Customers to Pay Early

Another tip for meeting seasonal cash flow challenges is to entice customers to pay early. If you invoice your customers, you could offer them a discount if they pay before the indicated due date.You may encourage prepayment or even down payments. For example, if you run a mattress shop, then you could ask people to put a down payment on their purchase.You can make this a seasonal offer and encourage customers to “buy ahead.” With more money flowing in, you’ll have an easier time managing your cash flow.

Get a Merchant Cash Advance

Sometimes, the answer to cash flow challenges is credit. That’s particularly true of seasonal cash crunches since they’re usually temporary in nature.A merchant cash advance is one of the better choices you have to manage seasonal cash flow. With one, you get the cash you need against expected future sales. As sales take place, you’ll pay back the advance.

Diversify Your Business

One of the best ways to solve seasonal cash flow issues is to diversify the business. If you run a golf course, you might also operate a banquet hall. Acting as a wedding venue can keep cash flowing, even during the winter season.If you face seasonal challenges, think about the ways in which you can diversify and offer more to your clients all year long.

Get a Helping Hand with an MCA

If you’re feeling pinched, it might be time to get a merchant cash advance. Get in touch with the experts and discover what the right financing option can do for your business.

Many business owners have trouble accessing traditional business loans. If you’re one of them, you may be wondering about alternative funding solutions. One of those solutions is the merchant cash advance, or MCA. Some businesses benefit from Merchant Cash Advance more than others. If you’re in one of these industries, MCAs could be the right choice for you.

Restaurants Need More Flexibility

Many restaurants face huge ups and downs, making their income somewhat unpredictable.If you already accept credit cards, merchant cash advances are a great way to secure flexible funding. MCAs could also help you invest in kitchen upgrades or follow up on trends like food trucks or local eating. You might even be able to open a second location to keep business growing.

MCAs Help Auto Repair Shops

Traditional financing can be risky for an auto repair shop. If you fall behind on payments, the lender might decide to collect on the loan collateral. That could mean the loss of expensive equipment or even your garage space.Merchant cash advances let you keep working without fear of the debt collector. Payments are based on your credit card sales, so there’s no need to worry about missing a payment.

Specialty Retailers Benefit from Merchant Cash Advance

Retail is another industry with slim margins. Specialty retailers face even slimmer margins, often because they’re selling to a small crowd.MCAs could help you weather the ups and downs. They could also help you upgrade your space or move to a more attractive one, so you can be where your customers are.

Is MCA Right for You?

Merchant cash advance has benefits for many different businesses. If you think it might be the right solution for you, get in touch with us. We can help you explore all financial solutions for your business.

Looking to get a loan? Perhaps you would like to lease an apartment? If you have issues with your credit card, getting these types of approvals can be an issue. However, there are a number of ways that you can get your credit back on track. Here are five steps that you can take to help improve your credit.

1) Cut up your old credit cards and only use one for emergencies

One of the biggest reasons why people have issues with their credit is due to the overuse of credit cards. Therefore, if you have a number of credit cards in your wallet, it's time to get rid of most of them. Try to have only one credit card in your wallet.With that one credit card, be careful how you use it. You should not use that credit card for regular purchases. Instead, you should reserve it for emergency spending. This will cut down on your credit card limits which can boost your credit score.

2) Pay with cash as much as you can

Now that you are cutting down on your credit card, you should start paying with cash. This will allow you to only spend the money that you have. The last thing that you want to do is spend money that you don’t have. By only using cash for regular purchases, you can be sure to maintain your budget.If you don’t feel comfortable with holding cash in your wallet or purse, then consider using a debit card.

3) Deal with high-interest rate debt first

Interest rates can be a killer when it comes to your finances. Be sure to pay off your high-interest rate debts first. This will help pare down the overall money that you owe. Typically, you high-interest rate debt will come from credit cards or payday loans.When you pay down a high-interest rate loan, be sure that you avoid any sort of high-interest rate loans or credit cards in the future. This will lower your chances of getting into any debt trouble.

4) Start an automated bill payment plan

Paying your bills on time will go a long way to boosting your credit. One of the best ways to pay your bills on time is to simply set up automatic payments. Most banks offer an automatic payment plan that will handle your bill payment duties.

5) Monitor your credit score

It’s a good idea to monitor your credit score on a daily basis. You can check your credit score for free on CreditKarma.com. Also, you are entitled to one free credit report from the two major credit reporting agencies:

• Trans Union - to include a different link https://www.transunion.ca/
• Equifax - to include a different link https://www.consumer.equifax.ca/

Getting your credit card under control

We believe that low a credit score shouldn’t stop you from growing your business. That is why 2M7 Financial Solutions offers merchant cash advance for small and medium-sized businesses regardless of their credit score. Our team is ready to help your business get the funding it needs. Contact us today.