Companies can use a business cash advance for several purposes. It is important to evaluate individual business needs to determine which option is best. For example, a company with a lot of debt should focus on consolidating it. A business with more demand than supply should focus on expansion. Use the following suggestions.
Expansion
Use a cash advance to secure a lease for a larger building if more space is needed. When a business has more demand for inventory than what is on the shelves, it is best to order more inventory. Keeping a larger supply on hand makes it easier to meet increased demands for a specific product.
Renovation Or Upgrade
Companies located in older buildings can use cash advance funds to pay for a renovation. If the company relies mostly on older equipment and does not need structural renovations, it is better to focus on upgrading equipment. Buying a new vehicle or new machinery may cut costs by reducing the amount of needed repairs to existing equipment. When doing renovations and upgrading any machines or appliances, be sure to consider green options. There are local incentives and tax advantages for some products. Be sure to research which ones are best for these purposes in addition to serving a longer useful life.
Advertising
Part of expanding a business is using good advertising tactics. Some companies cannot afford the best advertising options. Use a business cash advance to develop a solid advertising campaign with a more targeted reach. The funds may be used to pay for ideal advertising space, a reliable consultant and more. Be sure to research consultants before agreeing to hire them.
Pay Debts
If there are multiple debts with high interest rates, cash advance funds can be used to pay off all of the debts. This creates one single payment instead of several payments with their own compounding interest rates. Consolidation also makes it easier to track debt in relation to income.
These are just a few top spending suggestions. Every company should make a prioritized list of financial needs and business goals before deciding what to do with the funds from a business cash advance. After deciding on a purpose for the funds and how much money is needed, contact WG Financial for the best merchant cash advance options. WG Financial proudly serves all types of small businesses.