5 Tips for Getting a Merchant Cash Advance
A merchant cash advance offers a fast financing solution for small to mid-sized businesses that either can’t get or don’t have the time to wait for a conventional business loan. It’s an option that’s both easier to obtain and provides funds more quickly. If you’re considering a merchant cash advance for your financing needs, here are a few tips that can help.
Make Sure It’s Right for You
Before you start filling out applications, you’ll want to ensure that a merchant cash advance is right for your business. It’s best for those who receive a substantial number of transactions via credit and debit cards. That includes businesses such as restaurants, bakeries, cafes, retail stores, and service-related businesses. If you’re a cash-only operation or don’t do many card sales, you might want to consider a different solution.
Determine How You’ll Use the Money
Your lender is the one who ultimately determines how much money you’ll receive when you apply for a merchant cash advance. While you can use the money for anything business-related, you should have a good idea of what the money’s for and how much you’ll need. The more detail you can give your lender, the better your odds of getting what you request.
Learn Your Credit Score
A merchant cash advance has less stringent requirements than other forms of financing, and it’s easier to obtain, but you’ll still want to know your credit score before you apply. That’ll give you a better understanding of your financial health and how likely a lender will be to approve your application.
Get Your Documents Together
You won’t need near the number of documents as you would for a conventional business loan, but a lender will still want some information from you. Most will request your bank statements, credit card statements, and business information. Gathering all of your recent documents ahead of time will help expedite the process.
Submit Your Application and Any Required Supporting Documents Quickly
Even after you submit your application, the lender may still request additional information. Submitting it as quickly as possible will help to ensure you get your decision (and your funding) in a timely manner.
Get a Merchant Cash Advance for Your Business
A merchant cash advance offers a solid option for small and mid-sized businesses in need of some financial support. The thing is that it’s not enough to know whether or not it’s the right solution for you. You also need to figure out how you plan to use the money and have all of your required documents ready to go. Additionally, you’ll want to compare different companies to make sure that you get the best deal possible.