It is very important for every businessman to know that the business he is doing is maintaining a credit history so that it qualifies for a Merchant Cash Advance when there is a need for it or to meet any emergent requirement. Many businessmen are not familiar with this financial assistance or business financing as an alternative means of getting required capital at the time of need. Loans are obtained from banks by businesses having a good business credit history; however, those with bad credit find it extremely difficult to get loans from banks. What they do not know is the facility of Merchant Cash Advance from where they can get a loan.
Following points are basic guidelines for these businessmen to qualify and obtain a loan from the Merchant Cash Advance;-
- Merchant Cash Advance is for running businesses and not for startups. Most lenders will provide a loan to businesses which are at least more than 6 months in running.
- Be polite and friendly, display good character and confidence to win over the lender.
- Payment by your customers should be through Master/Visa Credit Cards. The lenders feel comfortable to give loans to businesses using credit cards. The paybacks of the loan are based on a percentage of receivables of credit cards. The future credit card receivables form the bases of the amount to be sanctioned.
- Provide 3 months of bank statement and 4 months of merchant processing to the lender.
- You must be very familiar with the rents and fees being charged from/ for the franchise and for the royalties.
- Ensure all your taxes are being paid and you can produce proof as and when asked for by the lender. You must have some sort of tax payment plan for tax liens.
- Lenders will like to check what rent you are paying for space or if you owned property has been mortgaged. This is important, as the lender will like to clear the outstanding payments before sanctioning the loan. Most lenders pay for at least a month.
- Remember do not try to use your personal credit card for payback this will not be acceptable
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