A merchant cash advance is a one-time payment that a business receives in return for a percentage of upcoming credit card transactions. Benefits of this type of funding include steadier cash flow, an easy application process, the lack of risk to your assets, and the freedom to use the funds however they are needed. Here are some tips on how to apply for a merchant cash advance.

Consider the Needs of Your Business

Before you submit your application for a merchant cash advance, assess how you can best use the funds. For instance, you may need to hire new personnel, buy equipment or inventory, improve technology, initiate a marketing push, or finance more growth. Being aware of your specific needs will help you calculate the amount that you request of the lender.

Decide If This Form of Funding is Right for Your Business

Before you apply, determine if the industry your business is a part of is right for a merchant cash advance. This method of financing fits best with companies that handle a large volume of sales using credit cards. Examples of these businesses are restaurants, retailers, and service companies.

Check Your Credit Score

Lenders that offer merchant cash advances usually find out your company’s credit rating to assess its financial health. Ensure that your credit score meets the lender’s requirements. If it doesn’t, you may need to either locate a lender that has lower requirements or somehow raise your credit score.

Compile Statements

As part of the process of applying for a merchant cash advance, you will need to submit some of your company’s recent credit card statements. Because lenders are buying a percentage of future credit card sales, they need to have an idea of how much your business brings in on a monthly basis.

Submit Your Materials in a Timely Manner

Be sure to submit your application, provide any necessary documentation, and handle any concerns of the lender promptly. This will enable you to receive the funding you require as soon as possible.

For more advice on applying for a merchant cash advance, get in touch with Increase Lending.