How Alternative Funding Can Increase Your Business Profits

Mar 06, 2017

Since their inception, merchant cash advances have been considered the best option for business owners to gain quick funding when needed. They are easy to apply for and don’t demand too much information. Moreover, leading players such as eMerchantBroker offer fast approvals, with cash deposited within only a few days.

That said, smart merchants have come to the realization that cash advances mean a lot more than just a bailout from a tough or unexpected situation. When used wisely, alternative funding can help to improve sale volumes and return larger profits. And in this article, we aim to explain how.

  1. Stocking up on inventory

If your business has established a consistent flow of customers, buying more stock can be a good way to ensure the availability of your product in the long run. In addition to earning you discounts form your suppliers, buying in bulk will also shield you from unpleasant price variations in the future.

  1. Expanding your operations

Cash advances can be reliable funding sources for merchants looking to expand their businesses. Unlike loans which will always be waiting to be serviced at the end of the month, a trader pays a cash advance through small portions of individual sales.

Expanding an enterprise will, therefore, be easy because you won’t have to worry about your bigger establishment gaining traction right away to meet mandatory loan requirements

  1. Taking advantage of the high season

As a merchant, there comes a time when demand for your goods or services shoots through the roof. For instance, if you run an electronics retail shop, the holidays will always mean more sales as customers flock to buy the latest gadgets for their loved ones.

Your store might not be ready for the peak season, but with a cash advance, you can ensure your shelves are well-packed to satisfy the sudden influx of customers and maximize sales.

  1. Vigorous marketing

Your business might be doing fine, but if you want an edge over the competition, you need a good marketing strategy. Building a campaign requires money and what better way to get it than a cash advance?

Not only is an advance quicker and easier to acquire, but if your strategy doesn’t work out as good as you planned, you won’t have the stress of making monthly payments to a traditional lender.

Takeaway

Some merchants think of a cash advance only when they’re hit with an unforeseen expenditure or when their clients fail to pay in time. But applying for one may be what you need to take your business to the next level.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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