Working Capital for Merchants

Shopping merchants rely on having consistent cash flow as the backbone for their success. In any type of business whether it is a food services establishment like restaurants, an online retailer, or even a professional service provider working capital is vital for managing everyday expenses, seasonal fluctuations in cash flow, as well as taking advantage of growth potential.

However, most businesses have trouble obtaining quick access to working capital since most businesses' working capital involves tying up your cash in inventory, equipment, accounts receivable (due to customers paying late), and other ongoing operational costs, to name a few. In addition, most businesses do not meet the lender's criteria when applying for traditional business loans, including lengthy approval processes, stringent credit history requirements, and fixed repayment schedules, and less than ideal repayment terms.

What Is Working Capital and Why Does It Matter?

Most businesses can obtain working capital via merchant cash advances as a better alternative compared to traditional sources of working capital. Working capital is the amount of money you need to use to pay your day-to-day operational expenses, which may include the following:

• Inventory purchasing
• Employee payroll and staffing costs
• Lease payments and utility costs
• Supplier payments
• Promotion costs

Insufficient working capital can make it difficult for even the most profitable businesses to maintain and/or continue operating due to fluctuations in cash flow from late customer payments, unanticipated expenses, and seasonal slow downs.

Common Merchant Working Capital Challenges

Merchants deal with numerous challenges, such as:

• Daily revenue fluctuations
• Seasonal revenue declines
• Late payments from clients
• Increasing overhead costs

Emergencies that require immediate repairs and/or inventory replenishment

In these instances, waiting several weeks for a traditional loan to be approved may not be feasible.

How Merchant Cash Advance Programs Provide Working Capital

Merchant cash advance programs provide upfront financing in exchange for a percentage of a merchant's future sales. Instead of making fixed monthly payments, merchants repay their lender through a percentage of their credit card sales income on a daily or weekly basis.

Because of the way returns are structured, merchant cash advance programs generally benefit merchants whose revenues fluctuate frequently.

Benefits to Merchants with Working Capital Needs

1. Speedy Access to Funds

Merchant cash advances provide fast access to funds compared to traditional business loan providers, making them an ideal financing option for urgent working capital needs.

2. Flexible Payments Based on Sales

Merchant cash advance repayments are based on the volume of sales generated by merchants. When merchant sales will drop, the merchant will make fewer payments to the lender. Conversely, if merchant sales will rise, the repayments to the lender will increase accordingly. This provides merchants with the ability to balance their cash flow more effectively.

3. No Guarantees Required

Merchant cash advances do not have to have collateral, which means there are no risks to you or your company with your assets.

4. Credit Based Approval

Merchant cash advance approval is based more on how well you sell and not only on how good of a credit score you have. This allows merchant cash advances to be available to many businesses.

5. Use Your Funds Anyway You Want

Merchant cash advance working capital can be spent on any items associated with your company; things like inventory, payroll, marketing, etc., as well as on unexpected events.

Merchant Cash Advances vs Traditional Business Loans

For merchants who value speed and flexibility, merchant cash advances often make more sense.

Why Merchants Choose Swish Funding?

At Swish Funding, we specialise in helping merchants access fast, flexible working capital through merchant cash advances—without unnecessary complexity.

When Should a Business Owner Consider a Merchant Cash Advance? 

Merchant cash advances are ideal when you need working capital to:

• Manage short-term cash flow gaps
• Prepare for seasonal demand
• Purchase inventory in bulk
• Cover payroll during slow periods
• Handle emergency expenses
• Support business growth

The merchant cash advance is designed to be a short-term solution to a working capital need and should not be used as long-term debt.

Swish Funding provides you with an easy and straightforward application process.

• Clear-cut terms that don’t have any hidden fees.
• Repayment amounts that adapt to your sales.
• No need for collateral.
• Funding solutions customized specifically for merchants.

At Swish Funding, we understand that each merchant's cashflow can be different, and therefore, it is our number one goal to ensure that you receive support for your business, not hinder your business.

Is Swish Funding's Merchant Cash Advance Right for You?

If your business:

• Accepts credit/debit cards
• Needs quick access to working capital
• Has seasonal fluctuations in sales
• Desires flexibility in repayment schedules

Swish Funding’s Merchant Cash Advance is a great fit for your business!

You can get fast access to working capital through Swish Funding.

We know running a business can be difficult enough without having the stress of cashflow issues. Our Merchant Cash Advances provide you with the necessary working capital to operate your business successfully, to grow with confidence, and to take advantage of opportunities as they arise.

👉 Apply today with Swish Funding to help you find the best method of managing your working capital!