Thursday, October 4, 2012

How To Qualify Merchant Cash Advance

 
 
When in business, there can be periods when turnover shrinks yet creditors still demand paying. It is natural for all businesses to have times of high sales, and weeks or months when trade is slow. If you are the owner of a business, and are concerned at the state of the balance sheet, it can be useful to learn about how to qualify merchant cash advance.
 
Merchant cash advances are sometimes referred to as bad credit business loans. If you have already been turned down for a regular loan, due to previous problems with debt, this type of financial product may be your best option in terms of acquiring capital. Statistics indicate that almost ninety per cent of applications for a merchant cash advance are approved, but before making contact with a lender, it is important to know that there are certain criteria that should be met to be eligible.
First of all, it is the owner of the business who must apply for the advance. When making the application, proof must be given indicating that you are the genuine owner of the business, this can be in the form of a business license or an Article of Corporation certificate. Without the right documentation, you will be wasting your time and energy applying.

The banks and other financial institutions offering this type of credit facility expect that applicants have been in business for a minimum of four months, though sometimes six. It would be necessary to furnish evidence of the period of operation before any funds are made available. If your business is yet to get off the ground, an MCA would not be the right service to apply for.

Another important criteria is to accept credit card payments. It is mandatory to accept Visa and MasterCard payments for a merchant cash advance to be given, though today there is hardly a company in existence which does not have such a provision.

Not only is it a prerequisite to accept credit card payments, most lenders stipulate that at least three thousand dollars must be processed in visa and MasterCard sales each month. Understand that the size of the cash advance is directly related to the number of credit card sales you have on a monthly basis, if you feel that the deal you are offered is not so attractive, you can always negotiate for better terms and conditions.

Paying back the funds that were issued is straightforward. Before you are given the cash advance, the lender would set up a system wherein a percentage of credit card sales are automatically transferred to them. There are no manual payments to make, therefore it is almost impossible to be late, that is unless your sales take a nosedive. This system does have advantages, it is thought of as a more natural process as the amount repaid each month is directly linked to turnover.

Applying for this facility is straightforward. All that is required is to complete a simple form. As long as you fulfill the basic requirements, you can have access to the funds in a very short time.

To learn more please visit us at http://www.merchantcashadvancer.net.
 

4 comments:

  1. Merchant Cash advances are a great tool if you do not have an alternative means of financing your business.

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