Merchant Cash Advance Local Bookstore Expands
Author: Valerie Mellema
Date posted: 07.20.23

While it might seem like everyone is moving to eBooks lately, many people appreciate having a physical book in their hands. A local bookstore on the East Coast was started due to the owner’s appreciation for print books and in the two years it had been in place, things had always been fairly successful. Consistent sales made it clear that many people still enjoy perusing a real bookstore.

The Potential to Expand

 

The idea of expanding and opening a second location had come up in the past. The need was there and it seemed like a great way to increase sales for the brand. When a neighboring store went out of business, the owners came together to decide whether they should look into renting or purchasing it. While it wouldn’t be a new storefront, it would greatly increase their space. It seemed like a good way to move forward, but there were other things to consider.

 

Costs to Double the Size of the Store

 

Moving into the neighboring space would create much more space for books. This would allow customers to find more items to purchase. However, there would be a need for initial financing to access the second space and merge things together so it would be cohesive. In the end, the costs seemed like they would hover around $95,000 to rent and outfit the space. Financing was going to be needed to go any further.

Selecting the Perfect Financing Model

 

If the owners went forward, they would need some help. Since things seemed perfect for an expansion, they decided to look into all their options. A traditional loan was an option but they were surprised by how many alternatives there were with different sets of pros and cons. It wasn’t long before they started to look at a merchant cash advance, which is what they chose to apply for.

 

Choosing a Merchant Cash Advance

 

One of the benefits of a merchant cash advance is that it has a high approval rate. It’s also easy and quick to fund. Rather than being a loan, it’s a discounted sale of future revenue where payments are made based on what the business makes in a day or a week. This seemed like a great choice since the amount would be paid off based on how much business the shop had. Funding was available in the amount the bookstore needed and could be placed in the company bank account in two days or less. Since applying was simple, they went forward with it and were happy to find out they were approved.

The Future of the Bookstore

 

It took time and effort but the bookstore is much larger and even more profitable than it was before. The extra square footage has allowed them to more than double the books they sell, which has been received positively by customers. Now, the brand is looking forward and wondering whether another bookstore might be the next step toward success.

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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