In today’s bearish macroeconomic environment, small and medium sized-businesses face many challenges accessing capital as application requirements, approval times and approval rates become more difficult to navigate. With the launch of ESS Capital, our new merchant cash advance program, we’re aiming to make it easier for storage facility owners to access the funding they need to grow their business.
So what exactly is a merchant cash advance and how can it help facility owners?
A merchant cash advance is a type of financing that provides cash upfront in exchange for a percentage of future sales. This can be a great option for storage facility owners who may have trouble securing traditional loans due to a lack of collateral, operating history, or a less-than-perfect credit score.
EES Capital vs. Traditional Financing
While a cash advance isn’t the ideal option for every financing need, it does carry several advantages that we believe make it one of the most accessible and simple capital options for facility owners today:
One of the biggest challenges for SMBs is access to capital - 50% of SMBs had less than a month of cash buffer on hand. Accessing funding from traditional lenders is difficult and time-consuming. Lengthy applications often require personal credit checks and substantial operating history. ESS Capital requires no application or credit check. Owners are pre-approved for an offer based only on their bookings performance.
Merchant cash advances are unique in their payment flexibility. Rather than being tied to a fixed monthly repayment schedule like a term loan, the payment of the cash advance is based on a fixed percentage of sales. This means that if sales are slow, the payment amount will be lower, and if business is booming, the payment amount adjusts accordingly. This is ideal for facility owners that are concerned about the minimum monthly payment requirements of a traditional term loan.
Funding speed is another significant benefit of cash advances. Unlike traditional loans, which can take weeks or even months to be approved and disbursed, merchant cash advances through ESS Capital can be funded in as little as 1-2 days. This means that storage facility owners can get the cash they need to make necessary repairs or upgrades to their properties, or to invest in marketing efforts.
What Can I Use Capital For?
Remodel & Repair
Whether your facility needs some light TLC or a full refresh, a cash advance can quickly get you the capital you need for upgrades. Renovations give new and existing customers peace of mind that their items will remain safe and secure.
Even the most convenient and up-to-date facilities still need to drive leads through a mix of traditional and digital marketing efforts..
You can use capital to help fund the purchase of your next facility and grow your portfolio.
Safety and security are paramount for customers. Use your funds to add peace of mind with the security measures and equipment that are right for your facility.
If you're a facility owner looking to grow your business, a merchant cash advance may be right for you. With its flexible payment terms and fast funding, it can be a great way to access the financing you need to take your business to the next level.