Depending on how you use them; getting a merchant cash advance can be a very smart business decision. This is particularly true if you are having a difficult time trying to get funded with a traditional loan from the bank or other lending institution. Many businesses are failing right now because of the difficulties in the lending market, which is making it very difficult to secure the much needed working capital to get them through these rough times.

This is why many merchants have migrated to cash advances in lieu of taking out a business loan from a bank. There is a much better chance of getting a merchant loan than going through traditional channels of funding.

The secret to why they are able to fund such a large percentage of applicants lie within their unique approach to funding; rather than putting a big emphasis on your credit history, they focus on your businesses sales potential. Not only does this approach create a much higher approval rate higher; they get you funded in a fraction of the time it takes the bank to approve your loan. And for a merchant who is suffering with financial problems, this is very welcome news.

The requirements for getting a merchant cash advance are considerably easier than going through the bank to get funded. But if you do happen to get turned down, it could be for the following reasons;

You have an open tax lien.
They may be able to work with you once you set up a payment plan with the IRS.

You have recently applied for bankruptcy.
Having a bankruptcy does not automatically disqualify you. It is best to be open and offer the details of your bankruptcy.

You have really bad credit.
Although they regularly work with people who have credit issues; there are limits to how bad your credit can be.

You are about to sell your business.
Selling your business during the cash advance payback period is prohibited. Even a hint that you might sell could put the whole deal in jeopardy.

You don’t meet the minimum requirements.
There are a few requirements that you need to meet before you can qualify for this type of funding.

  • You need to own the business for at least six months.
  • You need to accept Visa and MasterCard for purchases.
  • You need to process at least $2,500 a month in credit card sales.

Sadly, if you get turned down for a cash advance, there aren’t many options left for getting funded. However, many providers do offer a beginner program that almost anyone can qualify for, no matter how bad their credit is. If you would like to learn more about this beginner program or a cash advance in general; I invite you to FOLLOW THIS LINK to learn more about what a merchant loan can do for your business.

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