When is a Merchant Cash Advance right for you?
Updated: Oct 15, 2020
A merchant cash advance should be considered when you need access to quick capital to better advance the revenue streams of your business. Examples of this include purchasing inventory at a reduced cost, when needing to cover an unexpected bill or cost, or expanding work force or operations to grow business when time is limited for the opportunity.
We’ve seen examples of this where a construction company needs to quickly purchase a piece of equipment or hire a bigger temporary work force in order to bid on a large job, or when a restaurant is in need of urgent equipment replacement that’s vital to their operation. Merchants have used our funds to ramp up marketing campaigns so they increase business, or simply to cover an unexpected bill or cost that was a surprise. These are scenarios where traditional bank loan simply takes too long.
A merchant cash advance is not appropriate for personal use or for any other purpose that does not directly benefit your business’s revenue stream. Nor is it appropriate for a start-up company that does not yet have a steady revenue stream.
To qualify for a cash advance, your business must be open and operating (Elevate only requires 3 months in business) and able to demonstrate a consistent monthly revenue. This is how the advance amount is determined.