How Do I Get A Merchant Cash Advance?

A merchant cash advance is the financing that is steering small businesses away from high street banks and credit unions. This financing solution use your credit card sales to help you repay at a rate that is comfortable to your business. In this article, we give you the best tips to kickstart your merchant cash advance application.

But first, how do you know if it’s the right option for you? And how do you start your merchant cash advance application? Can any business apply for a merchant cash advance? Here are some of the most common questions answered, so that you can get your hands on the capital you and your business deserve.

How does the application process work?

The beauty of a merchant cash advance is in the simplicity. There’s no long waits for banks to get back to you. No dreary meetings with bank managers. No business plans and years of combing through your businesses finances.

A merchant cash advance financing is an easy and fast application. By providing some basic information you could be on your way to the funds that could help your small business grow. The application takes a matter of minutes and you could have a decision made on your financing the very same day.

How successful is the typical application?

With around 95% of merchant cash advance applications accepted, the chances of success are high. Unlike a typical loan from a bank, the odds are stacked firmly in your favour. High street lenders are often cautious and dismissive of new business enterprises. A merchant cash advance rewards entrepreneurs with financing that can help them become major players.

What size of businesses are eligible for a merchant cash advance?

Businesses of all shapes and sizes can start a merchant cash advance application. At Just Capital, we accept all kind of businesses that have a minimum of two years of existence. Many businesses have used this loan to push them forward.

Small businesses can benefit hugely from a merchant cash advance. The capital could be used to help owners through a tough patch of sales or to cover shortages of stock or inventory. Larger businesses often use a merchant cash advance as a way to make large purchases that require extra capital, or as an emergency fund in trickier times.

What about different types of business – are there any exclusions with a merchant cash advance?

Whether you are taking your first steps as a first time restauranteur, a small time business owner of an independent clothing store, or you own a large, multinational company that deals in car parts, a merchant cash advance is for you. There are no restrictions: any kind of business can apply for and be accepted for a loan.

How long does my business need to have existed?

It’s important that you check any requirement before you begin your business cash advance application. Every company has its own set of requirements you need to meet, especially when it comes to years in business. At Just Capital, your business needs at least two years of activity.

How easy is it to access my money if my application is accepted?

Dealing with traditional lenders can be tiresome. Getting hold of the money you need can involve months of waiting, and accessing the funds could be stressful. A merchant cash advance takes days to process and get the money to you. And if you use your merchant cash advance as an emergency fund, those money is available to you as soon as you need it.

What kinds of payment do I need to accept?

All you need for a merchant cash advance is the ability to accept credit card payments. This could be via a terminal in a store or through an online payment system. This is because the merchant cash advance is calculated based on your credit card transactions.

Not only does monitoring credit card transactions allow for your financing amount to be calculated; it also helps to keep your repayments flexible.

What if I am struggling to meet my repayments?

By using those credit card figures, a merchant cash advance remains flexible. So if you have a slow month due to poor sales, your repayments will adjust to the money that you have coming through. This also means that better months where sales improve sees the monthly payments increase to ensure the amount is repaid quickly.

But wait – my credit is poor! Can I still get my hands on a merchant cash advance?

The average bank or credit union will run personal credit checks that could see you punished for past mistakes. Banks will also ask for collateral to protect their investment. For business owners who do not want to risk their property or savings, this can make getting their hands on a loan nigh on impossible.

A merchant cash advance is not based on the past state of you or your business’ credit. It is based on recent credit card transactions, so no matter your credit score you could still get the financing you need to boost your working capital.

Can I apply for more than one merchant cash advance?

Yes! This financing is not a one time offer: a merchant cash advance can be added to, changed, used to fund one big project or a whole host of others. This flexibility is what makes a merchant cash advance so appealing to businesses across the spectrum. You choose how, when and why you spend the money.

Now that you know everything about how to get a merchant cash advance, you can start your application now!