Comments on: Merchant Cash Advance Financing: The Good, the Bad, and the Ugly https://www.womenonbusiness.com/merchant-cash-advance-financing-the-good-the-bad-and-the-ugly/ Business Women Expertise, Tips, Advice and More to Build Winning Careers and Brands Wed, 02 Oct 2013 00:39:18 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: bender https://www.womenonbusiness.com/merchant-cash-advance-financing-the-good-the-bad-and-the-ugly/#comment-11150 Wed, 20 Mar 2013 16:03:25 +0000 http://www.womenonbusiness.com/?p=1027#comment-11150 I’m a small business owner considering using a merchant cash advance. We have a pretty predictable amount of sales coming in – but its just not as busy as we’d like it to be (we just relocated and a lot of customers got lost in the shuffle) so an influx of cash will allow us to do some advertising and beef up our inventory a bit to make sure we don’t miss any opportunities of gaining a new customer. It’s hard to understand a business’s reasonings for choosing to do something like this unless you’ve been in the position of a small business owner with very few options in a tough economy.

]]> By: Dr Debit Merchant Services Inc https://www.womenonbusiness.com/merchant-cash-advance-financing-the-good-the-bad-and-the-ugly/#comment-9214 Thu, 28 Jul 2011 01:17:53 +0000 http://www.womenonbusiness.com/?p=1027#comment-9214 A merchant cash advance program is great for partner buy outs. For example if a partner wanted to purchase the business from a relative or boss they could do so. You are right, a mca is not a loan and will not show up on the balance sheet as a loan but rather a cash advance.

This money could then be used to make a downpayment on a building or equipment and counts as the owners equity share.

]]> By: jack burton https://www.womenonbusiness.com/merchant-cash-advance-financing-the-good-the-bad-and-the-ugly/#comment-1894 Thu, 13 Aug 2009 03:59:37 +0000 http://www.womenonbusiness.com/?p=1027#comment-1894 A merchant cash advance program is not designed for companies that are skirting the edge of going under. The ideal company is one that is doing good and has an opportunity to do better with a cash influx that will allow them to expand in some significant way.

Sometimes “waiting” until things improve will cause a business to miss an opportunity that their competitor will be happy to seize.

]]> By: Merrin Muxlow https://www.womenonbusiness.com/merchant-cash-advance-financing-the-good-the-bad-and-the-ugly/#comment-1259 Mon, 04 May 2009 16:39:28 +0000 http://www.womenonbusiness.com/?p=1027#comment-1259 Thanks for the comment- you’re right about being wary about cash advances, which is the heart of this post- they’re not ALL bad. Sometimes it actually does more harm than good to cut costs in certain areas. Cash advances are best for businesses with a steady, predictable sales volume that are temporarily low on operating cash (for example, those that just purchased expensive equipment to take advantage of tax savings).

]]> By: Coupon Artist, Frugality and Smart Spending Blogger https://www.womenonbusiness.com/merchant-cash-advance-financing-the-good-the-bad-and-the-ugly/#comment-1241 Fri, 01 May 2009 02:30:35 +0000 http://www.womenonbusiness.com/?p=1027#comment-1241 Isn’t this just creating a huge future problem to find a short term solution? A company that is already strapped for cash is going to be more strapped for cash once they have to pay back a loan at high interest rates, plus fees associated with it. I know cash advances are a terrible idea for people, I wrote a post about it here: http://www.artofthecoupon.com/cash-advance-credit-cards/
in which I argue that you should not take a cash advance to support a life style you clearly can’t afford. Can’t a similar argument be made for businesses- unless there is a clear influx of cash coming in,s shouldn’t companies do anything else (cut costs, limit expansion, etc.) to avoid getting a loan until they can find credit that won’t cripple them in the future?

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