We Fund Small Businesses if Approved

We accept, review, and process business financing applications for small, medium, and large businesses, and we are not a loan agency.  A lot of these businesses use financing for a variety of different business needs.  One of the ways companies use MCA financing is to cover operating expenses, which include rent, payroll, insurance, office and administration, marketing and advertising, repairs and routine maintenance, professional fees or fees for professional services, and transportation.

The rent is sometimes the largest expense that small business owners face, and this can be a pretty hefty bill if it is a large expense.  For medium and large businesses, rent could be a factor, but when compared to small businesses, and revenue of the medium and large businesses generally, rent becomes less of a factor. And, depending on the nature of the business, i.e., retail versus office, the rent of course varies.  In addition, the geographical location of the office or retail location could have an impact on the amount of the rent.  For example, not only is rent in New York City more expensive than in other parts of the country, say, Tulsa, Oklahoma, depending of course on the size and nature of the property involved, it can also vary based on a location within any given city.  In other words, some neighborhoods can be more expensive than others.  Regardless, since rent is included in operating expenses, it could make sense for a business with MCA funding needs to require a merchant cash advance to cover rent, either in the short term or in the longer or long term.  There may be a loan agency that also does this, but we do MCAs.

Another common operating expense subject to use by MCA recipients is payroll.  Of course, next to cash keeping a business alive, it’s also the people who keep it alive, and the people need to be compensated.  This is true regardless of how automated or not the business may be.  For instance, even if a business is fully automated, it still needs to be checked and monitored by a human, and that human needs to be compensated.  Usually, in this type of scenario, and depending on the structure of the business, as long as the business has at least one employee, when we are talking about employee compensation, by default we are talking about payroll.  And, depending on the type of payroll, say W-2 employees, the business will also have to pay state and federal payroll taxes, in addition to the wages paid to its employee or employees.  Some also consider 1099 contractors to be part of payroll. MCA financings and perhaps also a loan agency can usually cover payroll expenses, as those are a part of operating expenses as well.

The next category is insurance.  The insurance needs of a business depend upon the nature of the business.  Not only do the needs vary based upon the needs of the business, but also the cost of the policies involved.  Generally speaking, the higher the risk to the insurer, the higher the premium to the insured.  For example, if the business is in the business of racing cars, or doing pyrotechnics, the premiums would be a lot higher than, say, a business that writes book reviews (assuming there is not an element of defamation or insuring defamation, which could come into play).  Construction businesses are generally subject to higher premiums than businesses that involve less exposure to physical damage or harm, say like an online retailer of apparel.  Insurance policy premiums are an expense of a business if it is for business purposes and therefore, many businesses use MCA funds or loan agency funds to cover those expenses.

Another area of coverage and expenses in the context of a business is office and administrative expenses.  These are typically expenses that a business incurs to keep an office moving.  These expenses include things like paper, paper clips, printer ink, pens and pencils, and other office supplies.  These can also be called administrative expenses, those are expenses that are incurred or expended for the administration of the business or the office, and business owners would similarly use MCA funds or loan agency funds to cover those expenses as well.

A lot of business owners love to spend a lot of time in the marketing and advertising space for their service offerings and their goods offered.  There’s a lot of different opportunities for businesses to spend a lot of time and money in this space.  The big question is always whether or not the spend is or will be worth it.  The only way to determine that, however, is to understand the return on investment, and that can only be done if and when the strategy is put into practice.  A business can only do so much research and guessing as to how effective a marketing or advertising strategy is or could be, and so the best practice is to start small and test, and as potential customers get wind of your business through those efforts, then you track and scale.  In other words, one tool or method that some business owners use is define, act, measure, refine. That is to say, they define what they want to do, like direct mail for instance.  Then they implement the direct mail, or send it out, that is, they act.  Then they track the direct mail and count how many letters went out, at what cost, and how many clients called in from that effort.  Then, a business owner can refine it, and start the process all over again, and keep defining, acting, measuring, and refining; wash, rinse, and repeat.  One note on the refining process, for example in the context of direct mail, is that a business owner could change the color of the paper, whether photos are included, the color of the ink, and the size of the mailing, for example.  

Repairs and routine maintenance could be non-existent for some businesses, like a blog writer, yet be massive for other businesses, like a tax company.  When operating a taxi company, presumably the cars or other vehicles run constantly, are put to work quite hard and long, and need constant tweaking.  Since these are part of operating expenses, it only makes good sense for business owners to use MCA funds or loan agency funds to cover them.