Businesses often need additional funding to remain stable and spur further growth. A merchant cash advance provides you with a lump sum in exchange for a percentage of future credit card transactions. Here are some tips to help you more easily apply for this form of financing.
Determine the Suitability of a Merchant Cash Advance
A merchant cash advance is especially suitable for businesses in industries that rely on credit card sales. These include retail stores, restaurants, and service businesses. Another funding product might be better for you if your company doesn’t accept credit cards or only uses them minimally.
Calculate the Amount You Need
Before you apply for a merchant cash advance, calculate the financial needs of your company. You may need to hire extra help, upgrade your equipment, or expand your business. Be as specific as possible in assessing the number of funds your business requires.
Check Your Credit Score
The lender will check your company’s credit score while determining your eligibility for a merchant cash advance. If your score is lower than the lender’s minimum, you may be able to find another lender with less stringent requirements. Otherwise, work on raising your credit score so that you will be eligible in the future.
While assessing your application, the lender will want to see your most recent credit card statements. The specific number of statements required may vary from lender to lender. They need to check these to verify the financial health of your business.
Once you have determined that a merchant cash advance is the right financing solution for your company, turn in your application and other documentation as soon as possible. Promptly reply to any queries that the lender sends you, and you will soon receive the funding that your business needs.
For more advice on applying for a merchant cash advance, get in touch with Affinity Capital Funding.