Merchant Cash Advance Flower Shop Blossoms
Author: Gerelyn Terzo
Date posted: 09.16.23

Phil owns a flower shop in Cincinnati, Ohio. Like many business owners, he was already facing some cash flow problems, but things went from bad to worse overnight. Phil learned that his supplier had not received checks in the mail even though payment was sent. It was too late – inventory was running low, and the next holiday was right around the corner when he found out.

Due to the flower shop hitting its credit ceiling with the supplier, Phil faced a cash crunch he’d never seen in his 10 years in business.

 

Timing worsened with the supply chain crisis and Covid slowing flower deliveries. Nevertheless, Phil jumped into action. He knew a merchant cash advance was the quickest access to capital, and the qualification process would be simple. All he needed were recent flower shop bank statements. The best part was that no residential home collateral was needed, unlike a bank loan.

Phil sought $45,000 in funding with $60,000 in monthly revenue. Once approved, he’d have the funds in his business checking account within one day. The funding company would withdraw a small percentage of Phil’s weekly credit card sales for the business revenue advance.

 

Flexible Repayment Plan for Flourishing Business

Repayment is based on a percentage of sales, flowing alongside the cash register ringing. During a slow week, the funding company would take a smaller portion. In prosperous times, they’ll take more, aiding Phil’s quicker repayment of the business revenue advance. Phil’s flower shop thrived, ensuring lights stayed on, staff paid during the 18-month repayment period – a true win/win.

Merchant cash advance companies offer flexible funding options to business owners. Phil, with his beautiful flower shop, got creative. He rented it out as an event venue on weekends after sprucing it up with tables, chairs, and a portable dance floor. Booking events quickly, he turned things around with out-of-the-box thinking and funding from the merchant cash advance, despite short-term supply problems.

About The Author | Gerelyn Terzo

Gerelyn is a financial journalist who has reported for some of the top trade publications on investment banking, fintech and cryptocurrency. Gerelyn graduated from Campbell University with a B.A. in Mass Communications and currently resides in New Jersey.

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