Note Choosing the right merchant cash advance lender can be a hard experience. For you to eradicate the confusion of the process there are a few aspects you need to take into consideration when picking the merchant cash advance lender that suits your needs.
The majority of creditors will never charge a slew of additional fees upon approval of a merchant cash advance. With some business transactions, closing costs are needed. These fees are usually beyond the price item of purchase that is mostly paid at the close of your transaction. Ahead of picking a merchant cash advance creditor, ensure that there will be no closing costs in addition to the charges for the cash advance. On top of that, note that you are not supposed to pay interest on merchant cash advance since most of them do not impose interest rates.
Monthly credit card sales
Some credit sales that your company produces every month can help you in determining which creditor you will go for in case you need a merchant cash advance. Ahead of approving your loan, the majority of cash advance lenders will ask you to submit some amount of your company’s most recent, consecutive credit card statements. This will help them to determine if your business can support a merchant cash advance payment. Typically, you will be needed to submit three to six months or credit card statements, providing your creditors an idea of your average monthly revenue.
How long has your business been in operation?
Some creditors require that an individual own business for at least 12 months before you become qualified to get a merchant cash advance. Others will only require the business owner to have been in business for two months. If your business has been in operation for more than one year and has managed to process more than 5000 US dollars every month in credit sales, you certainly have a broad range of alternatives when it comes to picking a merchant cash advance creditor. Nevertheless, if you have been in business for just a few months, and you need money instantly, it’s nice to go to a lender that does not ask a one-year business ownership as a requirement.
How fast do you need the funds?
With any creditor, the initial application process for a merchant cash advance is always a quick and short process. After having all the required documents, the majority of lenders will approve your loan in a few days. However, some credentials that are needed to process and approve this kind of a loan might differ.
Some lenders will only ask for an application and information of monthly credit card sales, while others will need these also bank statements, lease agreements, video checks, and photo IDs. If you require the funds urgently, choose a service provider that needs less documentation, since this may speed up the process. On top of that, make sure you have all the required documents ready to expedite the process.