As the nation’s leading provider of Merchant Cash Advances, we see how businesses are spending them every day. We thought we’d share this information with you.
We asked one simple question to all customers receiving a Merchant Cash Advance: How Will the Business Spend the Merchant Cash Advance?
Potential answers were: Business Working Capital, Remodeling/Upgrades, Equipment Purchase, Buying Inventory, Expansion/ New Location, Business Taxes, Training, Trade Show Participation, Advertising/Marketing, Buying out a Business Partner, Product Development, Payroll, Temporary Staffing and “Other.”
To group similar strategies for comparison, we divided the potential uses into 3 groups:
- Working Capital
- Growth Initiatives (Remodeling/Upgrades, Expansion/ New Location, Equipment Purchase, Advertising/Marketing, Buying Inventory, Buying out a Business Partner, and Product Development)
- Stabilizing, Emergency or “Other” uses (Business Taxes, Training, Trade Show Participation, Payroll, and Temporary Staffing)
While just over half of the responding merchants (53.05%) stated their businesses were seeking Business Working Capital, 37.08% were looking for funding to handle the costs of growth initiatives, and only 9.87% were looking for cash for stabilizing, emergency or “other” uses.
These results suggest that the most popular ways for businesses to use a Merchant Cash Advance these days are for positive growth initiatives and for working capital. Most businesses seem to be obtaining a Merchant Cash Advance with an eye trained on the future.The full details of this study can be accessed in the Flash video linked here, on AdvanceMe's Merchant Cash Advance Details page. You might also want to view the How a Merchant Cash Advance Works page for additional information.
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What do you think? What do you think about these results? Do the numbers align with how you assumed they would stack up?