5 Ways To Get Prepared for Applying for a Merchant Cash Advance
When you are short on funding, a merchant cash advance can be a good way to get what you need. This type of financing works by giving you an advance on your projected credit card transactions for a small fee. You can use these funds for everything from supplying the next big project to making structural improvements on your buildings.
Check Options for Your Industry
This type of advance is not offered or recommended for every type of industry, so it is a good idea to double check which options are available to you and compare the pros and cons before settling on an advance on your credit card transactions.
Have a Plan for Using the Money
Before you take out any type of loan or advance, it is a good idea to determine how much you need and knows what you are using it for. This can keep you from taking too much, or too little, for your needs. It can also help keep you from spending money you need for one project on a separate one and ending up low on funds as well.
Know Your Credit Score
A merchant cash advance will require a credit check on your business to see the overall financial health of the company. Many lenders will have their qualifications listed so you can check your score and compare it to what you need for the advance. This can help you choose a lender as well as see how you can improve your score for the future.
Gather Recent Bank and Credit Card Statements
Not only will having bank and credit card statements handy makes it easier to give the lender an overall picture of your financial health, but it can also show them how many credit card transactions you have on average. This will determine the amount of your advance.
Be Quick About It
You will want to turn in your paperwork in a timely manner as well as be available for any questions your lender may have during the process. This will help you get the funds that you need more quickly.
A merchant cash advance can be the perfect way to get the funds that you need for your next big project. It is important to make sure that this funding type works with your industry and that your credit score shows a healthy financial history. You will also need to have the proper documentation and know how you are going to use the funds before you start the quick application process.