Why A Merchant Cash Advance Makes Sense this Holiday Season

Written by on December 3, 2012 in Finance And Lending - 1 Comment

With Christmas right around the corner and holiday shopping in full swing, chances are you’re going to need to be restocking your inventory on the regular if you’ll be expecting an influx in foot traffic at your business.  That inventory, especially a large bulk purchase, won’t come cheap.

That’s where Direct Capital and a Merchant Cash Advance can come in.

A merchant cash advance isn’t really a loan, but an advance that’s borrowed against future credit card receipts. The lender will take a percentage of your daily card receipts every day over time to pay for this money, but it’s not costing you anything up front.  That’s a big deal, especially when you’ve likely already put a good chunk of money into your holiday promotion.

If you’re a thriving small business with excellent credit card sales, an MCA could be the perfect solution when you’d love to buy inventory in bulk to nab a great quantity discount and stock your shelves before the holiday rush really sets in.  The best part? Since your daily payment amount is based on a percentage of your credit card sales, thanks to your blockbuster holiday sale season you’re ramping up for, you’ll have the advance paid off in no time.

Of course, merchant cash advances aren’t just for inventory purchases.  They’re also perfect for the seasonal small business owner that operates with a dramatic ebb and flow of sales as the months change.  Chances are your ice cream shop in Maine won’t be seeing the same traffic in December as it did all summer long.  A merchant cash advance can help tide you over until things get rolling again in 2013.

Have you used an MCA at your business?

Be sure to check out our Youtube channel for some great videos on MCA’s and other small business financing topics!

One Comment on "Why A Merchant Cash Advance Makes Sense this Holiday Season"

  1. Frank Powell January 25, 2013 at 7:57 am ·

    Merchant Cash Advance solutions are not only good for big businesses. Small businesses which have very little hope of getting their loans approved by banks, can also benefit a great deal from it. Cash advance solutions don’t require anything to be put on line as collateral. They don’t even do the credit check. So it is easier to get cash without much hassles.

Leave a Comment