With a merchant cash advance, you receive a lump sum, and the lender purchases a percentage of your future credit card sales. Thus, your remittance is based on your sales at the time, instead of having set terms. To apply for this product, you’ll need to make sales via credit card. Luckily, most retail stores receive plenty of credit card transactions, so this shouldn’t be an issue.
As a retail business owner, there are countless ways to utilize a merchant cash advance. Keep reading to find out how your retail store can benefit from this financing option!
Update Retail Technology
Although retail technology can be expensive, it can be valuable to your business. Retail technology can include point-of-sale (POS) systems, mobile apps, and progressive payment services. Ultimately, you should only invest in retail technology that you think will bring value to your operations, and your customers.
With a merchant cash advance, you can purchase or upgrade retail technology that you may not have been able to afford otherwise!
Purchase Inventory
As a retailer, customers might visit your store in search of a specific item. If you do not have that item in stock, they’ll likely take their business elsewhere. To avoid this, be sure to stock up on your inventory. This is especially crucial for popular or seasonal products that fly off the shelves. If you do not currently have the funds to purchase extra inventory, consider a merchant cash advance!
Afford Payroll
For your retail store to function, you need experienced employees who can sell merchandise, provide customer service, and maintain your store’s appearance. If you don’t hire enough employees, the quality of your retail store will likely suffer. Even worse, if you are unable to meet payroll, your existing employees will likely take their talents elsewhere.
To avoid this, especially during busy shopping seasons, you should hire additional employees or invest in payroll using your merchant cash advance.
Update Interior
According to Entrepreneur “appearance is so important in a retail shop that you should put a great deal of thought into planning and executing your displays.”
Consider your current store layout. Is it designed to optimize your customers’ shopping experience? Is the layout and decor visually appealing and easy to navigate? If not, you should consider using your merchant cash advance to re-design your store.
Get a Merchant Cash Advance for Your Retail Store
We mentioned a few ways you can improve your retail store using a merchant cash advance, but there are many other ideas that you can implement! If your retail store has successfully utilized a merchant cash advance, tell us about your experience in the comment section below.
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.
