Fortunately, Dave was friendly with another small business owner who had experience getting funding. The seasoned business owner recommended a merchant cash advance and referred Dave to the same company that he had used multiple times in the past. After doing their due diligence, Dave and his team were convinced that selling a percentage of future revenues at a discount was worth it for the quick access to cash and lack of any hoops to jump through. They reached out to the funding company to establish a relationship and get the ball rolling.

 

Dave’s company was on track for $2,000,000 in sales in its first full year. He was looking to access $150,000 in funding to help grow the business and maintain a competitive edge as copycat companies were springing up. That lump-sum amount would catapult the business further in a shorter amount of time than would otherwise be possible.

 

It was important to Dave to have affordable payments that allowed for some flexibility. In his line of work, some months are busier than others. The seasonal nature of the business made it an ideal candidate for an MCA.  Dave was pleased to learn there was no fixed repayment term. Instead, payments would be made as a percentage of credit card sales. He should have the advance repaid in about 12 months.

 

With the funding, Dave’s business would increase the number of races it offered across more cities. They also launched an online marketplace to match obstacle course racing (OCR) coaches with teams and individuals looking to train before competitions.

Before the funding, founding members of the company wore many hats, from answering phones to booking clients to leading strategy sessions. They decided that to focus on what they do best, team building, they needed help. So, they hired an outside company to handle setting appointments and other administrative-related tasks. This would free Dave and his team to focus on things like marketing and advertising to build the brand and grow the business.

 

With the capital that Dave and his team accessed through a revenue advance, they also expanded their physical footprint to participate in trade shows. Here they would work with vendors to create booths that attract attention and pave the way for networking opportunities for entrepreneurs. Dave’s positive experience with this financing meant that he would know where to turn the next time he needed quick and easy funding.

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