Merchant Cash Advance
Published September 14th, 2016 by

Tips for Choosing the Right Merchant Cash Advance Company

Tips for Choosing the Right Merchant Cash Advance Company

Cash is an essential aspect of any business. It tells you whether your company is a success or not. However, no matter how hard you try, your firm gets lower profits. Don’t blame your marketing strategy! There are other factors, which may cause this slow pace. It could be the season, or the economy is in recession. It can also be your reputation as a “high-risk” business. Whatever the reason, it’s essential to keep the money flowing.

There are several financial institutions dedicated to helping merchants like you. Their aim is to let you borrow a business capital from them. However, lending money from these services will take months before you get the cash. As an entrepreneur, you want to grab the opportunity while the iron is hot. Hence, if you choose to get funds from these providers, you might miss your chance of seizing that moment.

Fortunately, there is a loan provider that lets you grab the opportunity. This institution is the merchant cash advance company. Like traditional financial firms, their aim is to help business owners who are in need of capital.

There are many companies dedicated to providing merchant cash advance services. Most of them are reputable firms. However, there are those that provide bad assistance. This post will give you some tips for selecting top merchant cash advance companies. But first, you need to know what it is, and why you should get this alternative funding. So without further ado, let’s begin the discussion!

What Is a Merchant Cash Advance?

A merchant cash advance – also known as a merchant loan – is a way of getting capital for your business.

Many people think of it as a form of a loan. Though it seems to work that way, the merchant cash advance is not a loan. As the name indicates, it’s a business cash advance. The investor buys a portion of your future sales. Once the transaction process is complete, the company will give you a processor that needs to be set up.

This machine plays a critical role in paying the provider. Once the clerk swipes the card into the machine, a portion of your sales will automatically go to the company. Hence, you don’t need to visit their office to pay them.

However, not everyone is eligible to get cash advance business loans. To get this financial help, you need to have a stable and a year-round company. There are businesses, which only open in peak seasons. If you own such companies, then you cannot get this loan.

However, there’s a way to get their funds, even if you open your business occasionally. You just need to prove to them that you will be able to pay, despite the number of operating days.

You also need to have a MasterCard or Visa card. As mentioned earlier, they get your payment through a credit card processor. You need to connect it to your merchant account so they can get it there.

Lastly, you should make at least $2,500 of sales every day. Otherwise, you won’t get their approval.

If you have all of these qualifications, then you can apply for a merchant lending. When making a fund request, you need to prepare the necessary documents. You need to present four to six months of your bank statements and government IDs. You also need to fill up the application form. Once done, submit it to the company.

The investor will study the documents you’ve provided. After a few days, they will give you their answer regarding your request. If approved, you need to wait at least three days to get the money. They will also provide their credit card processor, which you need to set up. That way, you can start paying the investor the moment you make a sale.

The merchant cash advance is the best solution when your budget is short. However, you need to check first if you’re qualified to get their help or not. If not, look for another financial institution that can help you with your problem.

Why Should You Get a Merchant Cash Advance?

Many people are hesitant to get a merchant advance. It’s because of the misconceptions associated with this service. Don’t let these myths hinder you to get this funding alternative! Otherwise, you will never know the truth about this fund.

There are several reasons why getting a small business cash advance loan is a good choice. For one, it doesn’t ask for your credit score. It’s one of the greatest advantages of this financial help. When you look at their requirements, you’ll see that they don’t ask for your credit history. It’s because they base their decision on your merchant statement. So if you have low or no credit scores, then this one is for you.

Another reason is the approval rating. This idea is somewhat relevant to the first benefit. Since it doesn’t require your credit score, there’s a chance that your application will be approved.

Lastly, your credit reputation and property are not at stake. Some people care about their image. However, there are times when your business is not giving you the money that you need. If you don’t want to lose your reputation or your property, then this is the right choice!

Since it’s an unsecured loan, it doesn’t ask for collateral. Hence, if you miss the deadline, you don’t have to worry about your property. You still have a place to live. Moreover, you can keep your money issues a secret. No one will notice that you’re facing a financial crisis if you choose to get their assistance.

How to Choose the Right Merchant Cash Advance Firm

There are many merchant financing services out there. They all claim that they offer the best services. It could be true; however, not all of them provide the best help. They just tell it so they can entice entrepreneurs to get funds from them.

Don’t be a victim of such fallacies! If you’re new in getting their help, there are a few things that you must do. Listed below are some tips for choosing the right merchant cash advance firm.

1 – Create a list.

The first thing that you should do is to list all the services that you see. You can search the Internet or ask your credit card provider. The latter option is better since they can recommend a firm associated with them. That way, you don’t need to change your credit card processor if they approve your application.

2 – Compare the interest rates and policies.

Without a doubt, merchant cash advances are expensive. It’s because they’re putting the future of their businesses in the hands of others. Moreover, they don’t ask for collateral. Hence, if you fail to pay them, they will get nothing out of you.

However, you can still save money, despite the fees. You just need to compare the interest rates and policies of the providers. You can visit their websites to know more about the company. You can even call their customer support. Ask them about these concerns. Write them down so you can compare each firm.

3 – Know their qualifications.

Business cash advance lenders have different criteria when it comes to the companies they accept. Most of them prefer year-round establishments. They feel more secure since they know that you can pay their products. Still, there are funding services, which are not picky. They accept even those, which are open on certain occasions.

When choosing the right provider, you need to know their requirements. If your business is open all year round, you need to read and understand the steps for a loan application.

Likewise, if your business is just a part-time career, you need to choose a company that is not picky. Moreover, you need to persuade the firm that you can also pay them. If you convince them, you can start the transaction.

4 – Read user reviews.

It’s the most important part of this process. You need to read reviews of merchant cash advance companies. These articles will tell you what you need to know about the firm. Moreover, it will explain what the customers had experienced when they chose a particular company.

However, you need to be cautious when reading reviews. There are write-ups written specifically for marketing purposes. Hence, you need to know the source of the information. Make sure it comes from a reliable website to get an honest and fair review.

Choosing the right business funding service is essential. It is the only way to get the best service. Hence, you need to follow the tips mentioned above if you don’t want to choose the wrong company. With these tips, you are not only putting your business in good hands. You are also sure that they won’t get too much money from your sales. After all, their mission is to help struggling entrepreneurs. If they keep their promise, there’s a chance that you’ll get their service again.

Do you want to get a merchant cash advance? Visit and read reviews of merchant cash advance companies.

John Tovar

John specializes in the creation and planning of business-centric mobile applications and mobile website design and development.

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