Ask These Questions Before Applying for a Merchant Cash Advance
For small businesses, obtaining financing can be challenging. Most lenders are strict with many steps to follow. Fortunately, nowadays, your options are not limited to traditional forms of banking. One option to consider is merchant cash advance. This is a type of financing that enables one to borrow against future revenue. Additionally, they are not strict, which makes them a good option.
However, before you approach a merchant cash advance lender, below are some questions you need to ask first.
Do you have at least three months of business bank statements? Most lenders, including merchant cash advance providers, will want to look at your business’s bank statement to see the cash flow.
What is the average credit card volume? For a starter program, the average they will ask is about $2000 per month, while for a conventional program, the average needs to be about $5000. With about $2,000 in credit transactions every month, your chances of qualifying for a merchant cash advance are solid.
Are there any potential open credit problems? Some of these issues include bankruptcy, foreclosure, tax liens, ownership of less than a year, and other rules that apply to the standard program. As much as funding is still possible, it can be challenging.
Are you incorporated? Your business needs to be incorporated. You also need to have a business bank account, and you should process credit cards as well.
How long has the processing account been active? The account you will be using needs to have been operating for at least 3 to 4 months.
A merchant cash advance is ideal for any business that needs quick access to capital to cover various expenses. It helps close the financial gap in your business and keep things moving. The advance can be used for multiple things like hiring new employees, purchasing raw materials to meet a big demand, or buying new equipment.
A merchant cash advance can be a great option for a company looking for quick funding to meet the needs of the business. If this is you, reach out to Master Commercial Capital Group. With experience in finance matters, we will provide you with the capital you need to keep the business afloat.