Business Tip #2 – How to Get Approved for a Merchant Loan
Although getting approved for a merchant loan is a lot easier than getting approved for a business loan from the bank; there are still some things that you should know. Below is a list of things merchant loan providers look at while considering your application.
Your credit report
Unlike the banks who put a lot of emphasis on your credit history; cash advance providers put a lot more weight on your business’s sales potential. That said; they still need to look at your credit history to help determine your eligibility.
Like I said; your credit score is not their main consideration. I have seen business owners with credit scores below 500 still get funded.
Qualifications for a business cash advance
Qualifications for this type of funding are pretty straight forward: You need to have owned the business for at least 4 months, and you must process at least $2,500 a month in Visa/MasterCard sales. If you meet those two simple requirements; then chances are you will be eligible for a cash advance.
Things that can hurt your chances for approval
Merchant loan providers want to make sure that your business is sustainable and that you are not going anywhere. There are a few things that could jeopardize your advance request;
Bankruptcy: A recent bankruptcy can hurt your chances of getting approved. If this is something you did over a year ago, they may be able to work with you. It is best to talk with someone and be open about any bankruptcies you may have had in your past.
Open tax liens: A tax lien is another thing that may cause concern. However, if you have made arrangements with the IRS an you have started a payment plan, then this is something else a cash advance provider may be willing to overlook.
Behind on your lease or mortgage payments: Being behind on your lease or mortgage payments can be a source of great concern for cash advance providers. Many of them have been burned in the past and are careful not to make the same mistake again.
If you are late one month; they may be able to help you. Any more than that and you are going to have some difficulty getting approved.
Merchant loan providers specialize in offering working capital for those who are having difficulty in getting approved for a traditional business loan. They are able to approve nearly 90% of all businesses that qualify, but they do have some limitations on who they can fund. If you are in need of working capital, use the following link to see how much you can qualify for MERCHANT LOANS. Regardless of your credit situation, you may be surprised what they can do for you.
Chris Ronk writes articles about business loans and merchant cash advances for http://www.businesscashadvanced.net. Article Source:http://www.articlesbase.com/loans-articles/business-tip-2-how-to-get-approved-for-a-merchant-loan-1402987.html
Even Someone with a Credit Score of 450 is Eligible For a Merchant Cash Advance
You may think that someone with a credit score of 450 would not be eligible for anything, let alone a $50,000.00 business cash advance or more. But I assure you they are. I have firsthand experience with several business owners whose credit score was just as bad, if not worse.
These people came to us with no other options and were completely surprised to discover that we were able to fund them. These people may have had bad credit, but they had a few things going for them;
- They owned their own business
- They had a consistent record of business transactions (i.e. credit card sales)
- They were current with their lease or mortgage payments
- They had no current tax liens
We were able to fund these businesses because we don’t approve businesses based on their credit score; we fund these businesses based on their transaction records, particularly their credit card transactions.
A business cash advance is unique in that they are able to advance you money by purchasing a portion of your future, unprocessed credit card receivables. Once they give you the money; you pay it back automatically through your credit card processing machine using a small percentage of your daily credit card sales.
There are several advantages to this type of arrangement. Most notably; they are able to get working capital for their business when nobody would touch them. Other key advantages are that there are no monthly bills to pay, no bank fees and no late charges.
Because they use a percentage of your daily credit card sales; it creates a flexible payback structure, where you end up paying less on slow days and more when sales pick up. Before you know it, the advance is paid off.
Business cash advances have helped thousands of business owners get the financing they needed to grow their business and become even more competitive. If you are looking into different funding options, I invite you to click here to learn more.
Chris Ronk writes articles about business loans and merchant cash advances for http://www.businesscashadvanced.net Article Source:http://www.articlesbase.com/loans-articles/even-someone-with-a-credit-score-of-450-is-eligible-for-a-merchant-cash-advance-1347438.html
