How Can You Use Your Merchant Cash Advance? (However You Want)

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On September 29, 2009, we posted a blog titled “Using Your Business Cash Advance.” This post offered various possible ways that a merchant could use the business cash (up to $500,000) obtained through a merchant cash advance.  However, as you may already be aware of, there are no restrictions on how merchants can use their advances.  Therefore, renovation, expansion and advertising are not the only feasible uses of a merchant cash advance.

Explore New Markets

If you’ve been selling the same products to the same people, year after year after year, it might be time for a break from the monotony.  Consider exploring new markets.

Do the research and find out which audiences that you are not currently reaching, may be able to benefit from your products and/or services.  Once you’ve done the research, a merchant cash advance can finance the promotions, advertisements and marketing to your new target audience.  You may be able to increase your customer base by adding a demographic or two.

Introduce a New Product or Service

Introducing a new product or service to your business could bring in new customers and/or entice existing customers to make additional purchases.  Look into competing businesses and see what types of products and services they offer.  Use your merchant cash advance to go above and beyond your competition, offering your customers a wider selection, or improving on the products and services that you already provide.

Working Capital

If your business’s sales are low and you simply need a little extra cash to keep your business above water, a merchant cash advance can be the perfect remedy.  Working capital is extremely important for any business, so having access to working capital when you need it is key.

As mentioned, these are only a few suggestions on how you can use your merchant cash advance.  In the end, the decision is completely up to you.

*If you got a merchant cash advance of $30,000 or more, how would you use it?