In June 2021, MCP shared a Forbes Business Council article by Elie Y. Katz about business cash advances. It discussed expenses that can lead owners to seek funding, including renovations, equipment, inventory, and marketing.
Turn the expense into a budget
Price the work or purchase, identify when payments are due, and estimate what cash the business can contribute. For an expansion, include operating costs while the new space or equipment gets up to speed.
Check the effect on cash flow
Compare available financing by the cash received, total cost, payment frequency, and contractual terms. Check how collections work and what happens if sales slow.
A useful purchase still needs an affordable funding plan. Base that plan on the business's records, with room for results to fall short of expectations.
