How to Use a Merchant Cash Advance for Your Service Business
Luckily, there’s a solution. If your business requires additional financing, you could apply for a merchant cash advance! To qualify for a cash advance, you’ll need to receive frequent credit card payments. Once approved, you’ll receive a lump sum, which will be remitted through a percentage of your future credit card sales.
If you’ve recently received a cash advance, or are interested in pursuing one, keep reading to find out how you can use this financing to improve your service business.
Hire More Employees
Running a service business requires flawless customer service. If you’re unable to perform your service seamlessly, customers will likely take their business elsewhere. Due to this, with your merchant cash advance, you can hire more staff members, so that you’re able to fully support your customer base. Whether it is filling a position or hiring additional individuals for an existing role, you’ll be comforted to know that you’ve recruited enough employees to meet customer demand.
Invest in Marketing Initiatives
Service business owners that want to grow their customer base often use merchant cash advances to afford new marketing campaigns. With your merchant cash advance, you can pursue opportunities such as:
- Hire marketing team members: Instead of trying to handle marketing matters yourself, recruit professionals who can oversee your service business’s marketing efforts.
- Invest in direct mail materials: Design and send direct mail pieces, like post cards or newsletters. This way, you can reach potential clients, and show them how your service business can serve them.
- Sponsored social media posts: Target nearby patrons who fit the description of your ideal customer. For instance, you could target your posts towards people in particular age ranges, geographic locations, and professions.
It’s important to remember that if you want to reach more patrons, you’ll need to first invest in marketing efforts that will attract them! With your merchant cash advance, this is an attainable goal.
Pursue Expansion Plans
If your service business is successful, why not consider how you can pursue future growth? With your cash advance, you can receive a lump sum that can be put towards expansion plans. For example, you could open another business location, add a new service to your repertoire, or expand an existing location.
Have Additional Cash Flow
As a service business owner, you understand that sales can be unpredictable. You might have especially busy seasons, and times when sales slowdown. Due to this, you should apply for a cash advance and use these funds as excess capital. For instance, you could save this money for an emergency, or use it for smaller investments. In addition, if you expect an increase in demand for your services due to seasonality, you should have resources in place so that you don’t lose out on potential customers. Ultimately, having increased cash flow can give you peace of mind!
Using a Cash Advance for Your Service Business
Having additional business financing can help you achieve your business goals. Regardless of the type of service you offer, you’ll likely find areas of your business that need to be improved. Once you have a cash advance, you can take your service business from good to great!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.