Funding In The Fast Lane
Merchant Cash Advance Funding In The Fast Lane
Author: Valerie Mellema
Date posted: 05.24.23

If you live somewhere with a university, you’ve probably seen how popular scooters have become to get around campus. One man saw this himself and decided he wanted to get involved in this world of alternative transportation. He opened a small shop that rented and sold scooters and quickly became the talk of the small West Coast city he was located in. It was impressive how quickly he saw good business and he was happy to take advantage of it. He hoped that things would continue in that vein and he could start setting up other shops after a year or two in business.

The Pressure of Innovation

 

The shop’s popularity grew, effectively highlighting the necessity for a larger scooter inventory. However, a significant challenge arose due to the recent establishment of the shop, rendering conventional loans unavailable. Given its small and new status, banks and credit unions considered the business inherently too risky to actively support.

Nonetheless, the owner was determined not to give up. Initially, he began by formulating a solid plan and swiftly recognized the need to progress without relying on traditional funding. This unwavering drive led him to diligently delve into research and thoroughly explore alternative avenues.

How Much Financing Do You Need?

 

The owner thoroughly researched the funds needed for expanding the scooter lineup, skillfully introducing new marketing strategies, and effectively establishing the brand’s success in its initial phases. Ultimately, he logically concluded that $150,000 would suffice to move forward.

To prevent encountering a similar situation within months, his primary objective was to secure a significant amount. Additionally, he aimed for a reasonable request, considering the eventual repayment. Furthermore, the discovery of the perfect financing solution was pivotal for progressing further.

Funding In The Fast Lane

Exploring Alternative Financing

 

Having a clear grasp of the necessary funds, he began exploring alternative financing avenues that matched his business requirements. This move aimed to avoid the need for a conventional bank loan, given that banks often hesitated to back businesses under two years old.

The appeal of merchant cash advances became apparent to him. Their focus on newer enterprises and their repayment structure linked to his scooter sales and rentals made the choice to apply and move forward evident for him.

 

What sets the Cash Advance apart?

One major advantage of a merchant cash advance is the swift availability of funds, typically within 48 hours of approval, allowing the owner to promptly secure new stock and thus maintain a well-prepared store for potential customers.

However, the benefits don’t stop there. Additionally, this financing option offers remarkable flexibility, enabling the funds to be allocated to any business-related need. Furthermore, business owners can repay through a daily, weekly, or semi-monthly schedule, directly using customer credit card transactions, which streamlines the process.

 

Scooters Reign Supreme

Following financing approval, the money became available the next day. Without delay, the owner began updating his stock and has encountered no issues in sustaining operations since. Moreover, he’s rapidly paying off the amount through sales and rentals, and he’s highly satisfied with his decision to progress with a merchant cash advance.

Funding In The Fast Lane
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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