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Everyone loves the sight and scents of lovely floral arrangements. When expertly arranged by a local florist, flowers can make any occasion memorable for years to come. Florists and flower shop owners often rely on small business loans and other forms of working capital to maintain their busy operations. Behind the scenes, it takes a tremendous amount of hard work, creativity, and financial resources. From store overhead to hiring the best employees, a florist must always be prepared as costs tend to fluctuate with the market for floral supplies and fresh flowers from around the world. So too, smaller florists need to be continually advertising to gain an edge on bigger competition brands.

FLORIST SALES NUMBERS ARE EXPECTED TO INCREASE FOR 2016-2017

IBIS World reports that total sales for floral arrangements in the USA topped around $7 billion as of August of 2016. Sales are typically strongest around national holidays. According to the Society of American Florists (SAF), last year’s average purchase in flowers over the Thanksgiving and Black Friday weekend was around $300, and many consumers waited until the last minute to make purchases. Consumers have come to expect more ready-made floral arrangements in the $39.99 price point.

The SAF also found that floral shops with at least $1 million in annual sales 49 percent reported an increase over previous years, and the rest remained the same or experienced a 20 percent dip in sales. The most popular sales include cut flowers and corporate gifts. Most experts predict robust sales for floral arrangements this year as more disposable income is available.

HOW MERCHANT CASH ADVANCE PROGRAMS FIT WITH THE FLORAL BUSINESS

A merchant cash advance program can work well for a florist, because a majority of floral sales happen by credit and debit cards these days. People love the convenience of calling in an order of flowers to be delivered to their loved ones. Managers like to be able to send company thank you and birthday gifts from a mobile device. Many florists have e-commerce websites that enable customers to place orders online for any occasion. A merchant cash advance helps a florist to be paid upfront and is a renewable supply of money that can help the business stay in good terms with vendors.

5 BENEFITS OF USING MERCHANT CASH ADVANCES TO SUPPORT YOUR FLORIST SHOP

What are some of the major advantages of merchant cash advances for florists and flower shop owners?

#1 – THE APPLICATION PROCESS IS A BREEZE.

Running a floral business takes a lot of effort, especially for a small corner store or home-based floral provider. There’s no time to get mired in days of completing paperwork, running reports, and tracking down references. Florists tend to be very hands-on with their businesses and customers, so not being tied up on applying for a merchant cash advance is a major plus. In most cases, a quick and easy phone call is all it takes to get the process started. Financial representatives at United Capital Source will walk the floral shop owner through the application in a matter of minutes, and then do all the work of tracking down the right funds.

#2 – FLORAL SHOPS WITH BAD CREDIT CAN GET APPROVED.

If there have been credit challenges in the past, a merchant cash advance is one of the easiest small business loan options for a florist. We understand that during the recent recession, many floral shops struggled with staying on top of financial obligations, and unfortunately some had to shut down. Others are still recovering, which means they are rebuilding credit scores. The advantage of a merchant cash advance for floral shops with bad credit are that they don’t pull a credit history at all. Instead, the program determines eligibility based on your current merchant credit card program sales.

#3 – NO MORE PUTTING UP COLLATERAL FOR A SMALL BUSINESS LOAN.

A fear that many floral shop business owners have is risking their shops and equipment to get a loan. Banks will often require some form of collateral to approve a small business loan. But not us. United Capital Source rarely, if ever, asks for any kind of collateral. A merchant cash advance isn’t based on your inventory, equipment, or even the value of your business. Instead, we look at other criteria such as how long you’ve been in business, your average monthly sales, and if you currently accept credit card payments from customers.

#4 – APPROVAL RATES ARE A LOT HIGHER.

The odds are in your favor with a merchant cash advance program. Since the majority of floral business owners already have a relationship with one or more vendor accounts, the approval process is much faster with a merchant cash advance. Lenders can verify your history of sales, using the peak season when your business had the most sales, to factor the amount of your approved cash advance. Then, money can be available in 48 hours or less from your application, in most cases.

#5 – EASY, FLEXIBLE REPAYMENT TERMS.

Perhaps the best advantage of a merchant cash advance is the ability to repay over time in small increments. Instead of a high monthly payment to worry about, a merchant cash advance is repaid as future credit card payments are processed. A tiny percentage of each payment is sent in, meaning you never have to think about how the money will be repaid. This is a very flexible option for many florists, especially during slower seasons. Loan as much as you need, and apply for more funds when you need them the most, based on your sales volume.

As you can see, there are multiple benefits of choosing a merchant cash advance from United Capital Source. Explore this and many other small business loan options by visiting our website today. We have no-hassle small business financial products that work well for any stage of your floral business, and special programs for minority and women-owned florist shops too.

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