A merchant cash advance is a popular, user-friendly option for businesses with a cash flow problem, however, the unrestricted nature of the funds can be more of a hindrance than a help. Without a funding structure, businesses can flounder and waste valuable resources on poorly implemented plans. The article will review spending strategies that are backed by a wise and responsible use of funds.
Basic Principles of Controlled Spending

The first step to using a merchant cash advance properly is responsibility. Before disseminating the money, take a long hard look at your credit history. You may not have needed a credit check to apply for the advance, but you do need to consider your credit habits before you start spending it.
If your credit score, or lack thereof, was the reason you requested an advance, you need to curb any irresponsible spending. Getting your spending under control is the quickest way to repair your credit. Make a deliberate choice to treat the merchant cash advance like a traditional loan to stop the old spending pattern from resurfacing.
The second component you’ll need is wisdom. Think about where you want your business to be in five years. What would it take to get there? Set goals, think about important investments, and orient yourself for long-term success.
5 Frequent Uses for Merchant Cash Advance

Speaking of long-term success, here are 3 ways to get large financing returns:
1. Generate ongoing revenue. This could be anything from a revamped marketing campaign to a multi-location investment approach; Keep an eye on the ROI Rate and work to pay off any debt.
2. Let the funds collect interest. If you put the money in a bank account, it will be secure, available for emergencies, and the interest could get you on the road to a faster financial recovery.
3. Do not carry credit card balances. Use the cash advance to pay off your credit cards so you’re not throwing money away on interest fees.
If you are looking to eliminate financial stresses that are more immediate, these are common concerns:
4. Use the funds to cover payroll and service fluctuations. In a tough economy, there’s almost nothing worse than falling short of your professional obligations. The merchant cash advance can safeguard against funding shortages.
5. Keep utility accounts current. Avoid the stress of late fees and collections. If you’re already under financial strain, this will only add to it. Use the cash advance to pay off any outstanding balances. This will keep you out of the red until the revenue stream increases again.
The open-ended nature of a merchant cash advance leaves many business owners wondering how to put the money to its best use. The response is only natural, especially if you’ve had limited exposure to implementing unsecured funds. These tips, in combination with the right outlook, will put you ahead of the game. Where you go from there is up to you. Consider these strategies and start putting your money to work for you.