How to Qualify for a Merchant Cash Advance

Need quick access to capital for your business? Find out what it takes to qualify for a merchant cash advance and get started today.

If you're looking for fast financing options to help your business grow, a merchant cash advance may be right for you. Find out what qualifications you need and how to get started with merchant cash advances so you can take your business to the next level.

Gather Your Necessary Documents.
 

In order to qualify for a merchant cash advance, you must first prepare the necessary documents. This can include information about your business, including an income statement, balance sheet and tax returns for at least the last 12 months. Additionally, you should be ready to provide bank statements, lease agreements, and proof of any other sources of income associated with your business. Having all this information ready will help expedite the application process and make it easier to get approved.

Analyze the Criteria You Meet.
 

Before applying for a merchant cash advance, it’s imperative to make sure you meet the criteria that lenders require. Factors vary by lender but usually include having been in business for at least six months, meeting minimum revenue requirements and having a credit score of 500 or above. Additionally, applicants may be required to provide proof of income from all sources (business and personal) and submit to a personal guarantee depending on the size of the loan and term length. Making sure you meet these criteria can help increase your chances of being approved for the loan.

Submit a Comprehensive Application Package.
 

Submitting a comprehensive application package is essential in order to get approved for a merchant cash advance. Lenders will want to see most, if not all of the following: your business plan, financial statements, tax returns, and bank statements. Additionally, having these documents organized in a professional manner can increase your chances of approval as it shows that you are serious about running your business and take its finances seriously.

Understand How Repayment Works for an MCA Loan.
 

Merchant cash advances are repaid much differently than a traditional loan. With an MCA, you’ll need to commit to daily or weekly payments that are drawn directly from your business’s bank account. This type of repayment structure is beneficial because it helps businesses stick to a steady schedule while also giving you control over the amount paid each period. It's important to understand how MCAs work before applying so that you can ensure that your business is able to meet the repayment requirements.