There are certain telltale signs when a business is ready to grow into the next stage of development. Sales are higher than they ever have been; the workload is overextending the existing staff; and the current equipment could use an upgrade to make operations run more efficiently. However, the amount of revenue coming in may be preventing growth-focused businesses from making the next big leap, simply because the money is going toward payroll and operational expenses, and paying down existing debt, leaving very little left over to invest in improvements. To ameliorate these circumstances, many growth-focused businesses are turning to merchant cash advances.
An Introduction To Merchant Cash Advances
Merchant cash advances are an injection of capital to boost a company’s finances so they can grow operations by acquiring new equipment, hiring additional staff to take on the extra workload, and even expand into larger facilities.
Repayment And Pre-Payment
In order to qualify for a merchant cash advance, a business must have the ability to accept electronic credit card payments. Merchant cash advances are repaid automatically from a small percentage of every credit card transaction. This gives growing businesses flexibility when sales are slow, and the ability to get ahead on payments during heavy sales periods. Additionally, merchant cash advances have no pre-payment penalties. This means if a growing business is in the position to completely pay off the remainder of the advance, they can do so without triggering extra fees of any kind.
Aquire Zero Debt
Traditionally, if growth-focused businesses needed extra working capital, they would take out bank loans. Unfortunately, bank loans are not a good solution in the long run, because loans create debt, impact the business credit rating, and there is something counter-productive about taking on debt to grow, only to spend the following years paying off the loan instead of focusing on the continued success of the business. Merchant cash advances are debt-free financing solutions, and since payments are made automatically, growth-focused businesses can upgrade and expand operations and maintain their forward momentum.
Learn More Today!
If you would like more details on merchant cash advances, or if you would like to learn about our other financing solutions for growth-focused businesses, call the Lavan Financial Group at 203-308-4547. Our team of professionals specialize in helping businesses get the working capital they need for growth and continued success.