Customers aren’t only looking for the best products. They want experiences that distinguish your brand from the rest. Providing those experiences is a necessary cost.

Those costs can get high. Your competitors are as serious about pleasing customers as you are. They’re willing to invest in customer service that will give them the advantage.

It’s time to transform the way you engage with customers. There are dozens of options available. These include investing in digital channels, providing more sophisticated customer service, and providing rewards and incentives.

But how will you finance your new strategy? If you’re ready to begin, an advance is right for you.

What is a merchant cash advance?

A merchant cash advance provides businesses with the money they need to start new initiatives right away. With fast access to capital, you can fund timely projects that will move your business forward.

These advances are small business financing options. You can finance your customer experience initiative or any other initiatives for your business.

The advantage of a merchant cash advance is the repayment structure. The lender takes only a percentage of your credit card revenue for each regular payment. That means the daily amount you pay reflects your business performance.

Advances process faster than bank loans. Your business may not have enough credit for a bank loan. Even so, getting an advance should be no problem.

How can a merchant cash advance help my business?

Fast capital can help you grow your business when opportunity strikes. It can help you boost our competitive edge by moving initiatives forward. And since repayment reflects your performance, your customers are the ones paying off the lender.

You can maintain a healthy gross margin even while paying the lender. That’s because you pay less when you sell less. You pay more only when you sell more.

Keeping your margin in check will help you support other initiatives. You can continue paying overhead and related costs of doing business as well.

You will repay the advance in the short term, usually within 12 months. Then you’re debt free, and your strategy is in motion.

4 great applications for a merchant cash advance

Let’s put this idea into practice. The following four applications are great examples of how best to use your advance.

You may be selling to consumers in a retail store. Perhaps you’re in online retail or selling to other businesses. No matter your market, an advance could be right for you.

1. Adding customer service software to an e-commerce website

Let’s assume you’re a retailer selling online to consumers in a niche market. You’ve carved out a growing space with a unique product. But your customer service solution can’t handle the new volume.

Looking for a new online customer service solution, you settle on an automated system. This will lower costs of operation and improve the value of customer experiences. It’s a perfect fit.

You haven’t built any credit as a business, but that’s okay. If you’re shopping for an advance, lenders will be more interested in your revenue potential.

How is your new solution going to help? Creating better customer experience helps retain customers. You’ll also get better insights for your business, and prevent new customers from leaving the site.

2. Making something good of a Bad b2b sales situation

Assume you’re a B2B company with your first and only product. You’re already in production when you learn your eager customers want a unique feature you’ve failed to include.

You’re in a tight spot, and you haven’t got much time. The decision you make now could make or break your business.

You can get an advance quickly enough to update the products. Since the sales potential is already there, you can count on great returns. That’s good news for both you and the lender.

The advance helped you avoid an emergency. It also added a lot of value to your business and the perception of your customers. You’ve paved the way to long-term success.

3. Getting a leg up on the local dining competition

In any business, owners should have market research and analytics in place. This enables you to predict trends and avoid disasters.

You can also seize opportunities ahead of your competitors. But do you have the capital to finance those initiatives?

Imagine you’re a small Italian restaurant owner among many in a small time. You’re competing in a very crowded market. Keeping ahead of the competition is essential.

You learn that a new Italian dish has become enormously popular in a short period of time. (Perhaps it is in a movie.) What will it take to get it on your menu before your competitors?

A merchant cash advance helps you finance new inventory at the moments you need it most. That can mean beating competitors to market. It also means keeping up with demand so you don’t miss out on new profits.

Make sure your promotional strategy is part of your initiative. You’ll draw the lion’s share of business when diners find out.

4. The apparel store’s seasonal event

Assume you own a mid-sized apparel store. You haven’t made a splash your new location. But you don’t have the capital to draw a big crowd.

Merchant cash advances are great for funding one-time events that drive a great deal of business. Grand openings, fundraisers, and seasonal events are great for exposure and capturing the market.

You can fund your entire event with an advance for your business. You’re confident the initiative will drive sales. You won’t miss the percentage of your revenue that helped you accomplish your goal.

Move your business forward

You need to invest in your best initiatives if you want your business to succeed. You can make progress even if you don’t have what you need on hand. And that success will pay off well after your advance is repaid.

Looking for finance? SmallBusiness.co.uk is working in partnership with trusted lenders to find the best business funding deals. Find out more here.