How Merchant Cash Advance Can Help You Set Up The New Branch Of Your Beauty Business


The entire world is beauty conscious, which few outwardly express and others implicitly admire! Since the feeling of being beautiful boosts the self-confidence level, these days, people are so eager to visit the professional beauty centers to enhance their appearances in one or the other ways. That is why the idea of setting up the new branch of your beauty business is appreciable, that would push your small business to the next best level. But, setting up a new branch requires more money aka business funding, which we are here to discover the best means of achieving it.

The various funding types available to expand your beauty business

Being a small business, the only solution is to avail business funding to set up the new branch, which can be accomplished by the following three ways.

  • The traditional loans

Naturally, the traditional loans aka the bank loans are the first choices that pop up in your mind owing to the extensive varieties available to alleviate your financial position suitably. Although the bank loans can be a tad cheaper, availing the sanction is far difficult, due to the complexity of the process and the time-consuming procedures. Yes, in order to apply for a bank loan, you ought to carry out some extensive paperwork, lengthier formalities, submit proofs or collaterals and much more that further pressurizes your already stressed situation. Even after doing all these, there is no guarantee that you would be sanctioned one as various factors like your credit score, yours and your business’ financial reputation and much more come in the way that would not allow you to borrow the necessary funding on time.

  • The crowdfunding concept

In this contemporary method of raising the funding for your business, you would raise a social campaign on the relevant platform to gain money from the common individuals. While this seems simpler and less complicated, unless and until your business idea is singular and attractive, urging the people to contribute money towards your business purpose is extremely difficult.

  • The alternative funding

This is the more preferred funding option, especially for the growing business as not only the complexity is lesser the process is also quicker that allows the business owners to attain their business goals on time. The alternative lenders are the ones who provide financial assistance for the small business, outside the traditional norms of the banking system to quickly and favorably satisfy the financial needs of the business owners. That is, the main aim is to overcome the drawbacks of the traditional loan process and to benefit every type of the business owner and their respective business, greatly. The popular forms of alternative business funding types are merchant cash advance(MCA) or the business cash advance(BCA), and the line of credit. In this, the MCA is the preferred small business financing, due to its unlimited benefits and comprehensive nature, which we are about to discover in detail.

Why merchant cash advance?

It is better to resort to the merchant cash advance way of deriving the business funding to set up the new branch for your business because

  • The process is straightforward

  • Fast access to the funds, which can be as early as 3 days when you approach the reputable MCA lender.

  • No collateral is required, whatsoever may be your funding amount

  • Your credit reputation is only reviewed and not revered and therefore, even if you have a BAD credit or if your business suffers from high overdrafts and high NSFs, it is certainly OK.

  • The approval rate is higher.

Thus, with these advantages, it is unlikely that your business’ financial expectations would be unmet and therefore, MCA is the right choice to grow the necessary funds for your business. But, before doing so, let us make you understand its uncomplicated working.

The business cash advance is a problem-free business funding solution, in where the funds you borrow for your business from the MCA funder, would be compensated using the specific percentage of your business’ credit sales. Although there is no concept of interest rate here, the actual amount to be repaid is determined by the factor rate provided by the BCA lender. This factor rate multiplied by the borrowed sum determines your actual loan value. The factor rate is determined based on various factors considered by the MCA lenders in the industry and it typically ranges from 1 to 1.5.

This unsecured loan type, is also a short-term loan type, in where the loan is offered generally for a period of 6 to 18 months. Within this stipulated period, you are expected to repay the estimated amount using the credit sales your newly established branch achieves.

Calculating the required funding for your business purpose

Your purpose is to set up the new branch of your growing beauty business and in order to determine the required amount of funding for it, you have to consider the following financial requirements.

  • The cost of new building

  • The hiring cost

  • The payroll

  • The working capital

  • The purchase of equipment like cosmetics and beauty gadgets.

  • Infrastructure cost

In the event of additional funding

When you are in the process of setting up the new branch of your beauty business, you might be placed in an unexpected financial situation, such as the need to raise the working capital for your existing branch, which can be easily availed, yet again using the MCA alternative lending solution that easily accommodates your plea for the additional funding. Referred to as the 2nd position, 3rd position, 4th position and 5th position funding, which is the maximum, are the levels of additional funding assistance one can avail while the previous cash advance is in existence or yet to be paid back.

The funding amount

The funding amount you can avail for your business is set flexible, where from as small as $5K to as huge as $500K, you can borrow any amount of money to satisfy the necessary financial needs of your small business.


So, when you gain the necessary funding to set up the new branch of your business using the MCA, you are relieved from the inconveniences of the traditional loan processing that would not only help you accomplish the various goals of your business on time but also help you accomplish them much favorably. Contrary to the popular belief that MCA is expensive, it is all nothing when compared to the inconveniences and sometimes humiliation you face from the traditional loan procedures and therefore, on a broader perspective, the Merchant Cash Advance is the favorable financial solution for your growing business, any day!

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