The best use of a business cash advance varies on whether it is variable or fixed.
If it is variable, then the capital should be used for a short-term expense. If it is fixed, then the cash should go toward a longer-term investment.
Variable vs Fixed
Below are sample uses for a variable business cash advance that would maximize the advantages of this debt product.
- Buying inventory
- Purchasing equipment that isn’t too expensive
- Taking care of cash-flow gaps
- Handling operating costs
- Moving forward with an investment opportunity that needs a quick infusion of cash
- Paying for an emergency cost
In contrast, below are sample uses for a fixed business cash advance.
- Embarking on a large construction project
- Buying expensive equipment
- Purchasing a building
- Buying a business
- Making major renovations to your center of operations
- Expanding to another location
