Expanding Your Business through Merchant Cash Advance Benefits

The business landscape is always evolving. In the last few weeks, the situation for many businesses in Ontario has changed drastically. You may be wondering where you can turn to find support in these challenging times.The good news is that there are plenty of supports for business owners operating in Ontario. If you’re looking for answers, try some of these tips and resources.

Federal and Provincial Support for Business Owners

Both the federal and provincial governments have announced funds designed to help business owners keep their doors open and their lights on during this time. If you’ve faced slashed hours or needed to lay employees off, then you may be eligible for business support funds.These funds could help you pay your employees during this time. Other funds are available to help businesses n Ontario manage their day-to-day operating expenses.

Check Government Websites for Resources

You may also want to look at the provincial government’s website, which has lists of programs and services for business owners like you. You can find one-on-one small business consulting and guidance, as well as workshops and more. You may also qualify for consultations with lawyers or accountants. Support is also available if you need grants, permits, or licenses. There are even resources to support mentorship and networking, available through Small Business Enterprise Centres.

Connect with Your Peers

Networking resources may be available through government-run resources. You may also find support through local small business organizations or trade federations. Even social media can help as you connect with your colleagues and peers.

Great Options for Creating Liquidity

In an uncertain market, business owners like you need financial options to help you create liquidity. Check in with your financial institution about measures they can provide to help you. You may also explore other options, like a merchant cash advance. The right funding options will help you create stability and flexibility when your business needs it most. Curious to learn more about your financing options? Get in touch with the experts and discover what a merchant cash advance could do for your business.

With COVID-19 being active throughout the year, e-commerce is generating more money than it ever has. Most of the physical means of buying and selling have been run out of business. Therefore, having an online presence has become more important than ever before. With that said, it’s safe to say that investment to update your website will be the best use of your money in 2021. It serves as the face of your business. Your website aims to earn your customer’s respect, as it helps them develop their first impression. Whether you trade-in footwear or have a grocery store that delivers, you would want to address several errors in your site, proving to be a profitable investment.

Long Term Investment

On average, a good website lasts for about three years. A well-made website with good optimizations and regular content updates can provide business that will exceed your expectations. In some cases, minor upgrades every now and then may last you more than three years. Spending money to milk those three years out of the site is a good idea because of the high ROI. You’re spending more upfront, but you’ll earn back tenfold in profit throughout the site’s lifetime.

Stay Up to Date

Website trends are changing rapidly. Just think about what websites are right now and what they were a year ago. These days, companies are focusing on minimalism and subtle color schemes. Two decades ago, the business made websites with flashing colors to attract the user’s attention. It doesn’t matter how good of a service you provide. If your website isn’t up to date, you’re not going to make a sale.

Outshine Competitors

Regardless of what service you’re offering, there’s always going to be one guy or one company that’s better at it than you are. So, when you just can’t outshine your competitors with your product, you can best them in other places. For instance, maybe your rival’s websites take 15 seconds to load. You could get the upper hand by halving those loading times. This would give your customers a much better experience with your website. Hence, even if your product is slightly inferior, your website makes up for it by outshining your competitors.

Maximize Security

If you’re ever used an antivirus software, you’ll notice that these applications receive updates almost every day. It may seem like developers are constantly updating their apps, but that is not the case. Instead, they’re trying to keep up with all the new and improved forms of malicious malware that people are constantly putting out on the internet. If you made your website five years ago, it’s optimized to the security threats present then. However, it doesn’t necessarily mean that the site is safe from some of the modern digital threats we’re facing today. By updating your website, you’re not just protecting your own data, but your client’s data as well.

Closing Thoughts

Updating your website can be a pretty expensive ordeal. Between hiring a web developer and paying server hosting fees, you can expect to sometimes pay bills ranging up to several thousands of dollars. To ensure you have the right resources to update your site, you can get some assistance from 2M7 Financial Solutions. We’re a company that offers merchant cash advances to business that need it. MCA means that you will only have to return a certain amount of your sales each month. If you need a company that can cover your website updating costs, get in touch with 2M7, and we’ll help you out.

If you’re an entrepreneur seeking affordable funding options for your business without giving up equity or being burdened by debt, Revenue-Based Financing (RBF) might be just what you’re looking for! RBF has been steadily rising in popularity among growth-stage companies, and for good reason; the flexibility and unique blend of equity and debt financing is changing the game as it keeps you in control every step of the way.But that’s not all. A whole world of revenue-based avenues, such as Merchant Cash Advances and Factoring are entering the scene too!In this article, we will dive into the world of RBF, its alternatives, and provide you with valuable resources to help you make an informed decision about financing your business.

What is Revenue Based Financing?

Revenue Based Financing is a new type of funding that combines the convenience of a business loan with the peace of mind of flexible repayment options.Instead of a set monthly repayment, RBF allows your company to trade a percentage of sales for start-up capital. This allows you and the investor, as it provides the funds you need without tying up valuable equity or incurring debt. Your investor can rest easy knowing that they will receive regular payments (though the amounts may vary) under a legally binding contract.

HOW IT WORKS:

1. Find an Investor

Venture capital firms, dedicated RBF investors, or angel investors are a good place to start.

2. Pitch Your Business

Present your business plan, financials and growth projections to the investor. Show them your intended use of the funds and your company’s potential for generating consistent revenue.

3. Negotiate Terms

If the investor is interested, this is where you will negotiate the investment amount, percentage of revenue shared, repayment cap, and anything else that is pertinent to the deal.

4. Sign on the Dotted Line

Once the terms are agreed upon, both you and the investor sign a legally binding document that outlines the specifics of the deal.

5. Put the Funds to Use

Receive your funds (usually in a lump sum), and put them to work in marketing, product development, hiring, or other areas that will propel your company’s growth forward.

6. Monthly Payments

As your business starts generating revenue, repay your investor based on the agreed-upon monthly percentage.

7. The Repayment Cap

Once you have hit the predetermined repayment cap, your obligation to the investor is fulfilled, and you retain full control of your business.

RBF Alternative: Merchant Cash Advances

If your business is retail based or receives a high volume of revenue from credit card transactions (such as a restaurant), Merchant Cash Advances may be a more suitable financing option. With MCA, you exchange a percentage of future credit card sales for the lump sum investment.

HOW IT WORKS:

1. Apply for MCA

Once you find a reputable Merchant Cash Advance provider, apply for funding using the above-mentioned information for your business, as well as your credit card transaction history.

2. Receive the Funds

Again, usually a lump sum.

3. Repay Via Sales

MCA offers a big advantage in that you have quick access to the funds, and the flexibility of repayments being tied to sales, which eliminates the need for collateral. However, MCA’s can be more expensive than a traditional loan, and the deduction from your daily sales may impact your cash flow for a time. Learn more about Merchant Cash Advances here.

RBT Alternative: Factoring

Factoring is also known as accounts receivable financing or invoice financing. It may work best for you if your business is facing cash flow issues due to slow-paying clients. With factoring, you sell your unpaid invoices to a factoring company at a discount, and they take care of collecting the funds.

HOW IT WORKS:

1. Find a Reputable Factoring Company

Preferably one that specializes in your industry.

2. Sell Your Unpaid Invoices to the Factoring Company at a Discounted Rate

Usually 70-90% of the invoice amount.

3. Get Paid Upfront

The Factoring company will subtract their fees and pay you the agreed upon amount right away.

4. Invoice Collection

Now it’s out of your hands, and the factoring company takes care of collecting the overdue amount from your clients!

5. Receive the Remaining Balance

Once the client pays, the Factoring Company will send you the remaining balance, minus their fees. Factoring eliminates the need for you to waste time chasing after clients to pay their invoices, and gives you quick access to the funds, relieving your financial stress. However, like merchant cash advances, factoring can be more expensive than a traditional loan.

Choosing the Right Financing Option

After reading this article and looking into the different financing options for your business, you hopefully have an idea of which option is best for your business. Ultimately though, the biggest factors to consider are:

• Your Business Industry
• Your Revenue Model
• Company Growth Stage
• Repayment Flexibility

Once you determine those, you can make the choice that works best to propel your business forward! Revenue Based Financing is getting more creative and attainable as the structure of our economy evolves. It really is becoming the financing option of the future.