With winter here in full swing and spring right around the corner, many people are taking their vacations. As such, many businesses stand to make a lot of money from tourists and vacationers, during this time of years. However, after the lull of an off season, seasonal business owners may find themselves in need of a little extra working capital to restock inventory, and get things prepared for the vacation rush. Luckily, Merchant Cash Advances (MCAs) offer the capital business owners need, with the flexibility that can’t be found in a conventional loan.
MCAs: They Aren’t The Same As Loans For Your Seasonal Business
In the past, even seasonal businesses would use traditional bank loans for extra working capital. The drawback to this was that entrepreneurs would then get locked into very rigid payment schedules. The loan amount gave them the capital they needed, but once the vacation season was over, they were still paying off the interest on the loan for years down the line, without the revenue to meet the payment schedule. This would leave many seasonal businesses losing money in short order, even after a successful season.
It’s All About Flexibility For Your Business
MCAs have risen in popularity with seasonal business owners because rates are very competitive, and the payments are much more flexible than loans. Unlike a bank loans, merchant cash advances do not have payment schedules. Instead, small payments are automatically taken out of every credit card transaction customers make at your business. This allows business owners to pay off the advance quickly during a seasonal rush, and it offers more flexibility when sales are light in the off season. Usually, retail stores, resorts, spas, hotels, and restaurants will get merchant cash advances a little before a vacation season in order to stock up on inventory, run advertising, and hire additional staff, and then reap the rewards of record-breaking revenue from vacationers and tourists.
If you own a seasonal business, or you would like to see how MCAs and other financing options could benefit your operation, contact the experts at Abel Commercial Funding. We work directly with business owners to get them the working capital they need, whether it is in anticipation of a seasonal rush, or larger funding for growth and expansion. Call our team at 301-200-9801 and one of our financial professionals will discuss your goals with you, and what options are available to bring your business to the next stage of success.