4 Steps for Getting a Merchant Cash Advance
One excellent solution to the constant problem of maintaining positive cash flow is acquiring a merchant cash advance from an alternative lender. This will put instant cash in your hands so that you can use it for whatever business purposes you have, and since it’s not a loan, you won’t have to worry about making fixed monthly payments in order to pay it off. Here are the steps involved in applying for a merchant cash advance.
Research Potential Lenders
Just like buying any other product, you should do some comparison shopping before committing to a merchant cash advance from any given provider. The tow things you should pay greatest attention to while shopping are the cost of the advance and the rate charged by the factor. The rate is important because it will determine what percentage of your credit card sales will be deducted to pay off the advance.
Be Sure Your Credit Card Processor Is Acceptable to the Provider
Any provider you work with will want to have a business relationship with your credit card processor, since deductions from your account will be made through that business entity. This may involve having your business switch credit card processors in order to find one acceptable to an alternative lender, but if you’re lucky, the lender may already be working with that processor.
Apply for the Advance
This may actually be the easiest part of the whole process, and you’ll be impressed immediately by the fact that it’s much less stringent and faster than applying for any type of bank loan. Assuming your business records are well organized, you won’t have any trouble with the application process. Your provider will of course review your business status, primarily your credit card sales volume, and will then either approve or deny your application.
Evaluate the Contract
As with any other contract, it’s important that you review all the details of the transaction, so you don’t receive any nasty surprises later on. Pay special attention to any penalties which might be involved, and be sure you understand all the fees. If all this seems in order, you will be free to go ahead and sign the contract.
Interested in a Merchant Cash Advance?
For some businesses, a merchant cash advance can be a perfect fit for their cash flow worries. If you’d like to find out more about acquiring a merchant cash advance, contact us at DrawBridge Capital.