How Merchant Cash Advance Funding Solution Can Transform The Various Types Of Retail Businesses

The importance of various retail businesses

The various day-to-day needs of the humans cannot be accomplished if not for the various types of store/retail businesses like the grocery, health store, supermarkets and its types operating in the community. While these businesses are essential, certain businesses like the liquor business are considered luxurious that is required, at times, to heed to our hedonistic needs. To simply put, a society is not operational if not for these stores that signifies the importance of the respective store businesses and the necessity to care for them financially to benefit the business, which in turn can benefit the society by providing quality goods and services.

But, the reality of these various types of store businesses availing necessary funding for their survival and development is pathetic, if not for the availability of comprehensive small business financing solution like the Merchant Cash Advance or the MCA!

The various financial challenges faced by these various store businesses

Before delving deeper into the subject of merchant cash advance, let us understand the various challenges faced by these business owners when trying to borrow funds for their respective business from the conventional lending sectors like the banks.

  • The lack of quick financial remedy

The survival of the business also lies in its efficiency or the speed of its operation, which gets disrupted by the unavailability of the funds to cater to both the business’ and the customers’ needs. In such a situation, the respective business owner strives to raise the working capital by approaching various banks for the appropriate bank loans. First of all, a business owner cannot be sure if a loan would be sanctioned to satisfy his/her business needs and on top of that, the time taken to consider and complete the process is too high that disqualifies the purpose of seeking a financial remedy!

Yes, the paperwork involved to initiate the loan process is colossal that does not allow for the financial remedy to reach the business at the right time.

  • No comprehensive services

The bank loans and other types of loans offered by the conventional funders are suitable only for those business owners with a satisfactory financial report card that is, with a good credit score, decent credit history, no overdrafts, no problem of NSFs and such conditions that prove their trouble-free financial situation. But, unfortunately, running a business isn’t that easy due to the significant challenges involved, which sometimes render the business owner to produce an unfavorable financial outcome.

For such owners, no comprehensive financial solution is available through these conventional lending institutions that turn their business’ situation even more pathetic. Especially, if you are running the liquor store business, which is considered as a high-risk business, getting a conventional financial remedy is almost impossible!

But thankfully, every problem comes with a solution and in here, we have the alternate funding solution in the name of comprehensive MCA.

The financial boon called the merchant cash advance

The merchant cash advance is a unique funding solution for the business, where, unlike the traditional long-term loans that allow you to borrow money with some specific interest rate for the specified period, this short-term unsecured business loan, provides your business with some advance funding amount, for which you have to accommodate using the percentage of your future credit or debit sales. Here, there is no concept of interest rate but, only the concept of factor rate prevails that determines, how much amount of money you should payback using the percentage of credit sales carried out by your business. Also, even if you have a BAD credit or if your business suffers from high NSFs, your plea for funding assistance would still be processed without any complications.

That is, say, your business needs $50K for raising the working capital and you are being paid this funding through the MCAwithout much paperwork and without the need for a collateral, for which your repayment would be decided based on the factor rate provided by the MCA lender, which we can assume here to be 1.2. So, the total money, which you have to repay within the stipulated short period of time, which might be from 6 months to 18 months or rarely, even more, is obtained by multiplying your borrowed sum with the factor rate. That is, here, it is $50k x 1.2, which is $60k!

So, $60k is the sum you would repay using the percentage of credit or debit sales that your business achieves within the stipulated loan period. Since the loan is paid back with the percentage of the credit sales, the merchant cash advance process is sometimes referred to as the credit card factoring, which is entirely different from the traditional factoring concept. Thus, this is a straightforward business funding solution that excludes you from facing too many pressures and preparations.

What can be the loan purpose

A retail store like yours should be in a position to tackle the following requirements.

  • Inventory Purchases

  • Store expansion that includes the cost of the rental space, hiring process, payroll, procurement of goods, infrastructure-related costs

  • General store maintenance or infrastructure changes

  • Working capital

  • Upgrades

  • Seasonal purchases

  • Payroll

One or more of these requirements are bound to happen anytime in your small business, which means anytime you should possess the ready funding. This ready funding is only possible with the merchant cash advance or the business cash advance (BCA) that negates all the drawbacks of the traditional bank loans.

In the event of additional funds requirement

When you are amidst the chaotic situation of establishing your store’s new branch, you might be in a need to further your inventory purchases, for which there is the need for the emergency or additional funding. Even this can be achieved uncomplicatedly by resorting to the merchant cash advance, where even if your 1st position cash advance is yet to be paid-off, you can easily avail the 2nd position cash advance to accommodate for your inventory purchases. Likewise, you can avail easily the 3rd position, the 4th position and, the maximum 5th position cash advances if you are in need of any additional money for your small business.

The amount of money allowed to borrow is also flexible, where ranging from $5K to $500K, or sometimes, even more, you can enjoy trouble-free funding for your business when you resort to the merchant cash advance way of financing your store business.


Thus, after having rejected by the banks, you need not feel doomed as there are much more favorable alternatives to the bank loans to fund your critical business, among which the merchant cash advance is the highly preferred one due to the obvious benefits and uncomplicated process that can provide you the necessary funding quickly!

"CapVance will  save  our client  money without sacrificing  quality service  that is how  we have a  client for life"-                                                                                                                                                                 Bill O'Donnell, CEO and President