As we start the new year, inflation has been a huge topic for SMB (small and medium-sized business) owners. Due to the Covid-19 pandemic, the Federal Reserve decided to provide financial relief to those affected. This sounds great but 20% of the dollars in circulation today were printed in 2020 alone. Due to this, the prices of many items have started to increase at the quickest pace in close to 40 years. Depending on the Fed’s actions this year these high rates of inflation could stick around for longer than we would like. In addition to money printing, many industries have been experiencing supply chain issues and labor shortages which only make matters worse.
But, can we beat inflation?
We must educate ourselves about inflation and manage our money to combat it. A great way to beat inflation is to invest, we know that. But have you considered the Merchant Cash Advance industry? An investment opportunity in this industry can easily beat inflation, potentially provide superior returns than traditional investments and offers cash flow, which is always important, thanks to the weekly payouts businesses make to their MCA provider. This investment opportunity offers less volatility in addition to better returns when compared with, for example, the stock market because the amount to be repaid is set from the beginning.
The MCA industry is estimated to generate around $5 to $10 billion per year in advances alone so you are getting into a niche market with lots of future potential. Nobody knows what will ever happen with the stock market and we know that extended periods of a bear market will provide negative returns. Therefore, alternative investment opportunities like MCAs can be a great way to diversify your portfolio to lower risks and generate solid cash flow.
How does a Merchant Cash Advance Work?
Merchant Cash Advances are an alternative financing method to small business loans. This financing product is not considered a loan so terms like interest are not used when talking about them. Small businesses will get an upfront sum of cash in exchange for a piece of their future sales. Repayment amount is based on the advance, and something called ‘Factor rate’ (multiplied by the advance amount equals the business’ total obligation to the Merchant Cash Advance provider, for example, for an advance of $100,000 that has a factor rate of 1.20 the total repayment will be $120,000). Businesses will pay a pre-set amount daily or weekly as opposed to monthly which can provide solid cash flow for the MCA provider. This daily/weekly amount is set based on the cash advance amount, business’ daily sales and term.
Disruptive MCA
Now Disruptive MCA is offering SMB owners who want to expand their wealth the opportunity to invest in this high-yield industry, allowing you to generate cash flow while having diversity outside of normal investments like the stock market. Disruptive MCA even offers different types of deal with different factor rate and terms, so you can purchase (invest in) the deals that accommodate more to your financial goals.