As the owner of a business, you need working capital. During the early days, cash flow may be minimal. One path toward getting what you need is through a merchant cash advance. Payment for this style of funding comes from future credit card transactions, so having more activity in this department means qualifying for more. Here’s a guide toward securing one of these loans and reaping the rewards.
Researching Possible Providers
There are many companies able to supply loans vying for your attention. Differences abound. It behooves you to compare the possibilities before moving forward. Find out how much each one charges, checking that you’re comfortable with the potential burden. Note that lenders have minimum requirements for acceptance. Find out what they are before completing an application; there’s no need to waste effort if being declined is a foregone conclusion.
Working With Processors
The merchant cash advance outfit you choose to work with needs to know you can satisfy the debt. Verify that the company you’re fostering a relationship with finds your credit card company sufficient. Choosing a merchant cash provider from a preexisting list of acceptable alternatives is one way of assuring an agreeable situation. Another is putting your cash provider first and switching credit card partners accordingly.
Submitting Cash Advance Applications
An advantage to these loans is that applications are much simpler than ones for traditional bank loans. Assuming your documentation is accurate and comprehensive, the process should be a breeze. Providers will want a comprehensive overview of your venture’s fiscal picture. Let them know what business structure you’ve chosen, and include a glimpse into the financial history of your enterprise. Tell them how much you make per year, the frequency of credit card transactions, and how much you expect to gross in the future. While a negative credit score could prevent you from securing an agreement, most merchant cash dealers consider the overall picture before reaching a decision.
Reviewing the Contract Details
Congratulations! You’ve been offered a deal from a merchant cash supplier. Before making the contract official, comb over what’s on the table. Review the rate you’ll be paying and whether any penalties associated with defaulting apply. Read every bit of fine print. If anything is unclear, seek an explanation before signing.
A merchant cash advance is one way of keeping your business growing. Especially for ventures that are just starting, understanding the process of securing one is bound to prove useful.
Speed of Light Funding understands that flexibility is essential to operational growth, which is why we offer a wide variety of business loans. We specialize in quick funding — in some cases, you can get cash within 24 hours. Once the money is in your possession, you can spend it in various ways.