Green Sheet interviews National Retail Solutions' Elie Y. Katz


Tax season can be a stressful time for small, independent retailers—especially after the holiday rush gives way to slower sales, leaner margins and unexpected expenses. In this interview, Elie Y. Katz, founder, president and CEO of National Retail Solutions (NRS), explains how merchant cash advances (MCAs) can provide a much-needed lifeline for businesses struggling with post-holiday cash flow issues and tax-time surprises.

1. Why is tax season such a difficult period for small retailers?

After the holiday season, many retailers face a steep drop in sales. On top of that, tax bills often arrive unexpectedly—and they're bigger than many merchants anticipate. When you combine lower revenue with higher-than-expected tax obligations, it puts a real strain on cash flow. This can affect payroll, rent, inventory, and even relationships with suppliers.

2. What are some common financial missteps retailers make this time of year?

A big one is underestimating their tax liability. If a retailer didn't set aside enough throughout the year, they might get hit with a large bill plus penalties. Another issue is not budgeting for accounting or tax preparation services, which can be surprisingly expensive. In response, some retailers reduce inventory or cut staff hours—but those short-term fixes can hurt their long-term performance.

3. How can merchant cash advances help in these situations?
 Merchant cash advances provide fast, flexible access to capital—often within a day or even hours. Unlike traditional loans, MCAs are based on a business's sales history, not on extensive paperwork or high credit scores. That makes them ideal for small retailers who need to act quickly to stay afloat during seasonal slowdowns.

4. What makes MCAs better suited for retailers than conventional loans during tax season?

Traditional loans usually come with fixed monthly payments and long approval processes. MCAs are different. Repayment happens automatically through a percentage of future card sales, which adjusts with the business's revenue. That flexibility is key—it means merchants aren't stuck with a fixed bill during slow weeks.

How do MCAs support business continuity during lean times?
 They allow retailers to keep running at full capacity. That means paying staff, keeping shelves stocked, and staying on top of rent and vendor obligations. It's about staying in business and staying competitive, even when revenue dips. Retailers can focus on customer service and growth instead of scrambling to cover basic costs.

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