A merchant cash advance lets businesses sell future credit and/or debit card sales for “cash now.” Retail, restaurant and service companies are at the forefront of merchant cash advance loans. It has been around for over a decade but it wasn’t until recently that merchant cash advance gained incredible popularity. In 2007, the merchant cash advance industry jumped fifty percent. Driven by a tighter credit environment that has caused major banks to shy away from lending to businesses in certain industries, the merchant cash advance industry is continuing its growth. In fact, most small businesses are demanding more for merchant cash advance.
Merchant cash advances have one of the highest approval rates and fastest processing for small business funding. Although providers of this are prepared to overlook bad credit scores and do not usually ask for collateral, business owners looking to get a merchant cash advance should still prepare themselves in order to get higher chances of getting approved. To help you prepare, here are a few tips that could be helpful in getting approved for a merchant cash advance:
- Take note of the qualifications. Merchant cash advance is available to most companies, provided that the companies have been in existence for over six months and that it accepts credit and debit card payments. The credit and debit card sales should meet the sales quota that the merchant cash advance provider has set forth.
- Fill out the application carefully and submit correct and complete sets of documents. Incomplete and incorrect information in the application and incomplete documents are detrimental to your chances of getting approved for a merchant cash advance or else you will experience any of the following: a) processing will be delayed because of the time it will take to correct or complete application and documentations, or b) application will not be processed at all. Make sure to legibly fill out the application form and submit clear copies of the documents to hasten the processing.
- Finally, stick to a single merchant cash advance provider and keep an open line of communication. Choose a merchant cash advance provider that offers the fairest terms, conditions, and interest rates. Once you’ve chosen a merchant cash advance provider, stick to it. Working with more than one provider can be very costly for the business in the future, and can do your business more harm than good. Make sure that you communicate regularly with your provider regarding your application. While this does not mean that you have to call them every other hour, communicating and staying in contact with the merchant cash advance provider is in the best interest of your business.