Ali Habib Mayar, Founder and CEO of an alternative finance company based in Long Island, New York called Platinum Rapid Funding Group, has become a respected leader in the Merchant Cash Advance (MCA) industry. Mayar got his professional start in corporate security, but it wasn’t his passion. He always enjoyed reading about business and how different entrepreneurs approach it, and ultimately decided to transform that hobby into a career by founding Platinum Rapid Funding. Today, the fact that his hobby and day job are largely the same thing gives him a great deal of insight into his field. (Check out this interview to learn more about why and how he got started in the MCA industry.)
For anyone who is unaware, an MCA is an expedited loan where a business receives money up front in exchange for a percentage of their future credit card-based receivables over a set time. One of the best things about it is that you can use the money for anything you want. Below, Mayar shares four ways to make the most of an MCA.
Invest in Subcontractors or Temporary Employees
If you anticipate a busy period soon, you face a staffing crisis. You need more employees to maximize your revenues while the customers are plentiful, yet may be uncomfortable with a long-term commitment to full-time employees you only need on a short-term basis.
A merchant cash advance is a great way to hire temporary help or subcontractors to maximize your boom periods without making a long-term commitment. You get the help you need when you need it with the freedom to exit the arrangement when it no longer makes sense. A win-win!
Invest in New Equipment
Every business’s equipment plays a large role in how efficient they are and ultimately how much money they can make. A carpet cleaner needs the very best cleaners to minimize drying times and get to more jobs. A restaurant can fill more orders more quickly with superior kitchen equipment. (Check out this interview with Ali Habib Mayar to learn more about what types of companies could benefit from a MCA).
Equipment often involves a large up-front cost that can be difficult for a small company to pay for out of pocket, making advantages like those above exclusive to larger operations. However, an MCA can give your business the funds needed to upgrade, leveling the playing field with your larger competitors.
Run Targeted Digital Ads
The quality of the product or service you provide doesn’t matter if nobody knows what it is or where to find it. As people spend more time online, digital ads are increasingly becoming the medium of choice for advertisers. Digital ads also have the advantage of being directed to your target audience, giving you a better ROI than other channels.
Prices are typically better if you buy digital ads in bulk, but where is an entrepreneur supposed to get that kind of cash? A merchant cash advance, of course!
Invest in More Product or Service Offerings
Finally, you may need to develop a new product to achieve the growth you want. The processes involved can get expensive, but an MCA can fund the project while ensuring that your existing operation can also keep the lights on.
Stay Up to Date With Ali Habib Mayar
Mayar has a personal blog, AliHabibMayar.com, that he frequently updates with his latest merchant cash advance tips. It’s a great way to stay informed about this exciting funding solution!