Retailers across the UK are increasingly using merchant cash advances to support their growth, with this funding allowing them to invest in stock, marketing, staffing, or store improvements. Unlike with traditional loans, a merchant cash advance for retailers is repaid as a percentage of daily card sales, which means that repayments depend on your business’s cash flow. Read on to find out more about how retailers are using this flexible funding solution to boost growth.
What is a Merchant Cash Advance?
A merchant cash advance (MCA) is a type of funding for businesses that process card payments. Instead of paying back a set amount each month, repayments are made as a small percentage of your future card sales. This means that how much you pay back depends on how well your business is performing, making it a great option for retailers with fluctuating sales.
A retail merchant cash advance helps you maintain your cash flow and seize new opportunities even during quieter periods for your business. This type of funding is generally quick and easy to access, too, with no need for extensive credit checks or lengthy application processes.
What Can a Merchant Cash Advance for Retailers Be Used For?
A merchant cash advance can be used for a variety of purposes, including:
- Purchasing new stock: Ensure you have enough stock to meet demand.
- Marketing and advertising: Invest in campaigns to attract new customers and boost sales.
- Staffing and training: Hire new employees or provide training to improve the service you deliver.
- Store improvements: Refurbish and improve your premises to enhance the customer experience.
- Technology and e-commerce: Improve your systems, website, or online store to stay competitive.
- Working capital: Cover day-to-day expenses during quieter periods without putting pressure on your cash flow.
A retail merchant cash advance can benefit small businesses requiring access to quick capital, whether to launch a new product, expand your store, or simply keep your operations running smoothly.
Why Choose a Merchant Cash Advance?
Merchant cash advances have become increasingly popular amongst UK retailers in recent years. Designed with flexibility in mind, they allow repayments to rise and fall in line with your daily card sales, giving you financial breathing space during quieter periods. Unlike traditional loans, there are no fixed monthly repayments, which makes them ideal for retail businesses with fluctuating income. For example, if your sales dip after the busy Christmas period, your repayments will adjust automatically to match your lower turnover.
Conversely, when sales pick up during busier periods, you’ll repay more quickly without any penalties. With a retail merchant cash advance, you can manage your cash flow effectively while still investing in opportunities to drive growth, such as expanding your product range, refurbishing your store, or boosting your marketing efforts.
Merchant cash advances provide retailers with a flexible way to manage cash flow and drive growth. Get in touch with the team at Elite Business Funding to find out more about our merchant cash advances for retailers.