There are times when you may struggle to feed enough cash directly into your business. You may have just had to pay a large bill or invest in new equipment that’s put you a little bit behind. However, you don’t have to keep struggling as you could look at merchant cash advances. These allow you to borrow a lump sum for your business and pay it back like a loan. Injecting a cash advance into your business can have many different impacts, keep reading to find out more…
What Is A Cash Advance?
Cash advances allow you as a business to access the cash you need and fast. Sometimes a cash advance can be more affordable than other means of finance too. You can also apply for them online, so you don’t even need to find the time in your busy day to head out to the bank and complete an application. Repaying a cash advance is different from a business loan too. Essentially, you’re borrowing the cash from your future sales, so you pay back a percentage of them each month instead. Some cash advances also don’t have any interest rates and your business isn’t actually accruing debt, so these can be a better option for you in the long run. Cash advances are an easy way to finance your business with ease!
Credit Score And Its Effect
One thing to take into consideration when applying for a cash advance is your credit score. A lower credit score might reduce the limit of what you can borrow, and if it’s especially low, you may not even get approved. It’s a good idea to check your business credit score before applying just so you can be sure you’re in with a chance of receiving the advance.
Review Your Profits
One of the best ways to see the impact of a cash advance is to check out your overall profits and sales. Typically, you’ll be using your cash advance to further improve your business so this means technically you should see some form of growth. Once you’ve implemented your cash advance, review your sales and profits after a couple of months and compare them to that of before you had the cash. This way you’ll be able to clearly see the difference it’s made to your business. If it hasn’t helped much, maybe you need to investigate why and change your business model to better utilise the advance.
Assess Your Outgoings
Another way to see the impact your advance has had is to assess your outgoings. Your cash advance should have put your business in a better position, so that should have hopefully reduced your outgoings each month. Although you’re paying back a portion of your sales, you should see a significant decrease as you’re financially in an improved place. You might have used some of your cash advance to pay off a previous debt or lease of equipment, so this will have lessened your expenses, despite now paying off the advance each month.
Fast Changes
Cash advances can be applied for and approved rather quickly, and you’ll typically receive the funds soon after. Just like their quick turnaround, you should see improvements to your business as soon as you start spending the funding. These changes should be positive and help your business grow, catapulting you to success easily.
Achieve Your Goals
Utilising a cash advance can have a brilliant impact on your long term goals. For example, if you’ve always wanted to expand your office, a cash advance can allow you to do just that. This can then improve your operations and in turn, grow your business even further. You’ll also be able to achieve your dreams a lot quicker when you have a cash advance. If you had to wait until you’d saved up the same amount of money, you might be waiting years. But with an advance, you can make the changes in a week or less!
Cash advances are a brilliant tool for businesses as they provide them with the cash they need upfront, with no hidden fees or debt. The repayments are collected automatically each month, and as it’s a percentage that’s taken, you might be able to pay it off quicker than if it was a business loan with fixed repayments. With a cash advance you’ll be able to see the impact it has on your business almost immediately, so why not check them out and see the difference it could have for you.
