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Small Business 911: The Merchant Cash Advance

Topic: Business Management,Growing Your Business,How-to,Managing Your Business,WorkingPoint News | Comments Off on Small Business 911: The Merchant Cash Advance

Posted on July 22, 2013 by workingpoint

Any entrepreneur knows that running a small business is exciting, partly because you never know what is around the corner. Unfortunately, sometimes the unexpected can turn into an emergency cash flow situation.

You never know when your business may need more working capital than you have on hand. Luckily, a merchant cash advance is one option that can help you deal with the unexpected while keeping business going as usual.


No entrepreneur thinks it will happen to him or her; sadly, in one form or another, almost every business owner will eventually tackle the problem of theft. When inventory theft takes a toll on your small business, consider a solution in the form of a merchant cash advance (MCA).

Without stipulations on how you spend the funds and minimal paperwork required, replacing your stolen goods or equipment can be less of a headache. Also, keep in mind that merchant cash advances do not require you to put up any personal collateral, something business owners will appreciate during such a vulnerable and testing time.


No matter how safe or prepared you are – no business can anticipate the curve balls thrown by Mother Nature. Flooding, hurricanes, earthquakes, tornadoes and storms can put an indefinite “closed” sign on your front door…but with an MCA they don’t have to.

Chances are that any environmental damage will affect your neighboring small businesses too, which can easily cause a backlog in insurance claims and processing times. Consider keeping your business afloat with an MCA, with approval and fund transfers typically taking less than a week, you can get back on your feet sooner than with typical funding options (like the bank).


While it may not feel like a 911 situation, unexpected growth can cause panic when the demand stretches beyond your current working capital boundaries. Unfortunately for some merchants, despite a surge in demand, past blemishes can keep them from getting the working capital their business needs to grow.

Unlike traditional lenders, MCA providers do not dwell on perfect credit scores and most will only require you to have been in business for 6 months. Despite your history, hiring employees, marketing campaigns, equipment purchases and physical expansion are all possible with an MCA.

As a small business owner, you have enough to worry about, the last thing you need is an emergency throwing your business off track. Just as you plan for the expected, be sure to prepare for the unexpected by educating yourself on all of the alternate financing options available. No day in business will ever be exactly the same, so be wise to the variety of options that can suit your ever-changing endeavor; especially the ones that can serve you with swift and convenient working capital when you need it the most.

What other 911 working capital situations can a small business experience?

About the author: Kelly Gregorio writes about topics that affect small businesses while working at Advantage Capital Funds, a merchant cash advance provider. You can read her daily business blog here:

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