With the current state of the market, it is also expected that small businesses have a harder time in qualifying for a typical bank loan. Because of this, more and more business owners go for a merchant cash advance (MCA). The MCA is a type of business funding that is done through credit card processing. It has a higher approval rate with less time needed in availing up to $250,000 flexible cash advance. This is a very reliable source of funds for owners of small businesses.
There are things you need to present in applying for a merchant cash advance from MCA providers. You first need to learn about some practices so that your cash advance application will get approved immediately.
Here are the ways in approaching MCA providers:
1. Provide an accurate disclosure fee to your chosen provider. There is actually no need for closing fees and processing fees for the MCA, but it is highly recommended that you understood the disclosure process. This will be needed for the repayment amount prior to the discussion about the final details of the cash advance agreement.
2. Be realistic with your business sale’s cash flow because the repayment amount will be based on your future credit card sales. Thus, you need to discuss how much money you are expecting for the coming months. The cash advance lenders will know about these matters and you need to be honest in giving your expectations.
3. Monitor your brokers and sales agents because the providers need to be certain that your products are successfully selling.
4. There are promotional documents for the disclosure as the marketing is clearly done through credit card factoring and not a loan.
5. If you just had your cash advance, you need to pay off the entire amount first before getting another advance for your company. That way, the providers will trust you with your coming transactions with the lending company.
A small business cash advance is a perfect choice for small businesses to get funded in times of difficulties. You will get approved a lot quicker with more possibility of being funded unlike with bank loans. After getting approved, you only need to worry about getting your business sales improved so that the advance will be repaid.
Because of this type of quick and easy funding, MCA’s are becoming more and more popular. This very reliable type of funding continues to help companies in improving their sales and operation.
John Gotidoc writes articles for Entrust Cash Advance, an established alternative business loan provider that helps small to medium-sized businesses secure funding for additional working capital and other business-related funding. Entrust helps businesses grow and entrepreneurs prosper. Call their toll-free number 877-760-9226 or visit their website at if you are interested in securing money for your business.