It is very important for every businessman to know that the business he is doing is maintaining a credit history, so that it qualifies fo
It is very important for every businessman to know that the business
he is doing is maintaining a credit history, so that it qualifies for a Merchant Cash Advance
when there is a need for it or to meet any emergent requirement. Many
businessmen are not familiar with this financial assistance or business
financing as an alternative means of getting required capital at the
time of need. Loans
are obtained from banks by businesses having good business credit
history; however, those with bad credit find it extremely difficult to
get loans from banks. What they do not know is the facility of Merchant Cash Advance from where they can get loan.
Following points are basic guidelines for these businessmen to qualify and obtain loan from the Merchant Cash Advance;-
Merchant Cash Advance
is for running businesses and not for startups. Most lenders will
provide loan to businesses which are at least more than 6 months in
running.
Be polite and friendly, display good character and confidence to win over the lender.
Payment by your customers should be through Master/Visa Credit
Cards. The lenders feel comfortable to give loans to businesses using
credit cards. The pay backs of the loan are based on percentage of
receivables of credit cards. The future credit card receivables form the
bases of the amount to be sanctioned.
Provide 3 months of bank statement and 4 months of merchant processing to the lender.
You must be very familiar with the rents and fees being charged from/ for the franchise and for the royalties.
Ensure all your taxes are being paid and you can produce a proof as
and when asked for by the lender. You must have some sort of tax payment
plan for tax liens.
Lenders will like to check what rent you are paying for the space
or is you owned property has been mortgaged. This is important, as the
lender will like to clear the outstanding payments before sanctioning
the loan. Most lenders pay for at least a month.
Remember do not try to use your personal credit card for pay back this will not be acceptable
