With multinational megastores expanding ever-further into once-siloed niches, customers have more options offering them greater convenience than any other time. Specialty retailers know success often hinges on providing personalized service and a level of expertise wholesalers and superstores can’t (and don’t try to) match.
While brand loyalty can be a powerful shield, it isn’t impenetrable. Rising rent costs, seasonal dry spells, and economic shifts are just a few of the common scenarios that leave businesses without the funds needed to cover expenses or keep up with customer demand. Growing your business also requires capital, whether to renovate your showroom, expand into a new space, or train your team on your latest product line. Specialty retailers need to be nimble to respond to all these competing demands, and nothing is more critical to your success than having cash on hand when your business needs it most.
A merchant cash advance (MCA) is a fast and flexible alternative to traditional funding sources. With an MCA, you get the funds you need to fuel the growth of your business in hours instead of weeks or months. Unlike the inflexible choices from traditional funding institutions that obstructed deserving retailers in the past, an MCA doesn’t bog you down in lengthy applications or rigid, punitive installment payments. The online application only takes a matter of minutes and qualified applicants are eligible to receive their funds within 24-48 hours. Repayments are just as simple, with a payment plan based on a predetermined percentage of future sales.
Explore the Top 6 MCA Benefits for Specialty Retailers
1) Get Immediate Access to Funds Deposited Directly into Your Bank Account
It’s a nightmare scenario: you’re trudging through the off-season when a viral “Best of” article features your business. Suddenly, you’re dealing with customer demand you’re thrilled to have but unprepared to meet. Even with precise demand forecasting, your inventory’s best sellers could sell out and create a need for you to have access to working capital to quickly replenish inventory.
Viral demand, though intense, is often fleeting. If you wait weeks or months to re-stock with funds from traditional methods, all those potential customers will move on before you can send out “back in stock” emails. With a merchant cash advance, the funds you need to meet unexpected demand are deposited within 24-48 hours, giving you immediate access to the capital you need right away.
Have cash in hand within 24 hours.
2) Simple, Streamlined Application Process
When you need to make a large volume advance purchase to fulfill a customer’s order, you don’t have 30-90 days to wait for funds to come in. And yet, that’s the typical timeline for most traditional funding sources. Merely gathering all of the paperwork required to submit your application can take weeks, and that’s only the beginning of the long, complicated process. Applying for a merchant cash advance is different. The online portion of the MCA application will take approximately eight minutes to complete. Merchants that fully qualify for a MCA are eligible to receive their funds within 24-48 hours.
The online application takes approximately 8 minutes to complete.
3) Use Your Funds However You Want
The labyrinthine application process isn’t the only obstacle common to traditional banking institutions and government funding options. Some specialty retailers may find themselves ineligible to begin the application at all. Dealers of rare stamps and coins, for example, are deemed speculators operating with “questionable foundation” even if they have decades of expertise that says otherwise, Retailers in “approved” niches can also find themselves ineligible due to the nature of their need. You know what your business needs, so we don’t restrict how you can use your funds. Whether your merchant cash advance is for $10,000 or $1 million, how you use to help your business is 100% up to you.
Use your MCA business funds however YOU want.
4) No Effect on Your Assets or Your Credit Score
For specialty retailers, it can often feel that risk doesn’t just come with the territory; it IS the territory. Whether you’re facing down a decline in consumer spending or trying to reduce shrinkage, you’ve taken on plenty of risks already. Traditional sources can force you to take on even more by putting your assets on the line. And, if your business is too new to have a credit rating or your personal credit score has a few negative marks, the doors to most funding institutions may be closed to you. A MCA is an advance on your future sales, so you don’t have to take on even more risk by pledging your assets as collateral, nor is your access to funding restricted by your credit score.
Your assets and credit score are never at risk.
5) Flexible Repayment Options You Control
Rigid restrictions on repayment can create severe challenges for specialty retailers. You should never have to choose between paying down your balance and paying your suppliers and staff, yet many repayment plans require just that. Adherence to strict, one-size-fits-all payment policies can even restrict your ability to grow your business. No business should have to choose between paying their installment to hold onto their collateral and re-stocking so they can increase sales. A merchant cash advance offers more flexible repayment formulas so you can choose the option that suits your business best:
- A fixed-rate assessed either daily or weekly; or
- A percentage of your daily credit card sales
Choose the repayment plan that works for you, not against you.
6) Get Your Funds in One Lump Sum Payment
Whether you’re expanding into a new location, upgrading your POS system, or investing in a new marketing strategy, you can’t get started if you don’t have access to the necessary funds–all of them. With a merchant cash advance, what you’re approved for is what you get. Your funds are deposited into your bank account within 24-48 hours and in one lump sum. What could you do for your specialty retail business if you had an extra $250,000 in your bank account tomorrow morning?
Access all your funds, all at once.
Ready to get the working capital your business needs? If you still have questions about whether a merchant cash advance is the best decision for your specialty retail business, we can help. A member of our expert team will be happy to answer any questions you have about applying for an MCA. Together, you’ll decide whether you qualify, walk through the process step by step, finalize your application, and establish your chosen repayment plan. It’s that simple.