If you are a small business owner, you understand the challenges involved in keeping your small business operating. You ensure that your customers are paying on time. You move the inventory and make sure that you have what you need to do that. You also want to give your customers the ability to use credit or debit cards. All of this involves expenses which in the business world is a liability.
You also sell to your customers, which depletes your inventory. Their payments to you become an asset. Your job is to be sure that as the inventory on hand declines, you are able to keep up with the supply and order more to balance things back out.If you run out of a product, it could lead to a need for a merchant cash advance to quickly resupply.A healthy supply is an asset. Having more on hand than you can sell is a liability.
What If You Run into Cash Flow Problems?
Once you are in business a few months you should have started to build up a customer base. These customers will tell others and so your business grows. As it grows, you watch what your customers are buying. You analyze which products are selling. Some may be more popular than you thought, and others may sell less than you expected, so you adjust your on-hand inventory accordingly. You could also have a retail store suddenly stuck in the center of road repairs. This could temporarily slow down sales and you could run into a temporary cash flow problem. What do you do? You are worried about the bills due and the mounting inventory.All of these situations could cause you to need a cash advance for a retail store.
Will My Bank Help Me?
The short answer is probably not. You will need retail store business funding in these situations. Banks tend to be skittish about funding new businesses. Capital investment firms, on the other hand, look at a new existing business, determine if it is making money and has run well since its start, and base their funding decision on that.
