Financial Advice Apr 11, 2022

Obtaining a Merchant Cash Advance: Learning the Process

In an ever-changing economic environment that has left many small businesses behind, understanding the financing options available is vital. A merchant cash advance (MCA) can give a small business an injection of cash necessary to boost your business to the next level. If you’ve been curious about getting a capital infusion from an MCA, you may be wondering how you can apply for one.

The process is simpler than you might think.

What Do You Need to Be Approved?

First, you have to understand how a merchant cash advance works. An MCA is a type of business loan that offers a business a lump sum of cash. This investment can be paid back to the lender based on future profits your business makes through credit card payments. A major part of getting approved for an MCA is through proving that your business has consistent credit card sales. Usually, this means that your business must take credit cards.
An MCA is very flexible and a fast financing option. Loans can vary from $5,000 to $500,000 at some companies, and you can use the capital in the way your business needs to, and payments are also very accommodating. Plus, the application process is very quick and requires few documents and depending on the lending company, no credit check.

This leads us to:

How To Apply

Applying for a merchant cash advance is incredibly straightforward.

1- Gather the Information You Need

First, you need to get your hands on all the information you’ll need to submit alongside an application. This will include a form of valid identification, like a government-issued ID or passport. Then a few months of bank statements and a bank account and routing number will be necessary to make the deposit.

Some companies may require a credit check on the business or business owner or ask for other documentation like previous credit card processing statements. Look to the lender’s website to see what pieces of information they need from you.

2- Apply Online

Next, you have to apply for the loan online. Have those documents you gathered on hand during this process and follow the instructions. Nearly all MCA applications can be filled out solely online and take a handful of minutes to complete.

3- Application Review Process

After your application is submitted, an algorithm and/or the human members of the team at the lender’s office will review the application. If more information is needed to decide the outcome of your application, you may be contacted during this phase.

4- Receive The Funds

Finally, if your application is approved, you’ll get the funding you’ve asked for. Depending on the accuracy of your information and other factors, this process could take anywhere from a few minutes to about a week. In some instances, you could receive the funding for your business almost instantly.

Making the Most of Your Cash Advance

When it comes to getting the funding your small business needs fast, a good option can be an MCA. This kind of loan is extremely flexible and can offer you the cash injection you need while offering a fast but adaptable payment schedule that works on percentages rather than fixed dates.

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