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Are you considering a merchant cash advance for funding? Do you need financing quickly? Or is your current credit score making it difficult to acquire a traditional loan?
No matter why you are looking into a business cash advance, some tips will help ensure you take out the right advance from the right provider
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Avoid Running Negatives
If you are considering a merchant cash advance, the lender will look at your current accounts to calculate the right amount. They will look at your current and prior transaction history to do this.
If you have had a lot of situations of bounced checks and insufficient funds, you may not receive the funding you apply for. In most cases, the funding company will require that you may payments daily. If you have a track record of not meeting your financial obligations, getting this type of funding may be impossible. Because of this, you need to make sure you don’t have a lot of instances of negative balances
Maintain a Sufficient Daily Balance
If you want to be approved for an advance, you have to keep your day-to-day balances as high as possible and avoid negative balances in your accounts. Suppose a funding company sees that you have sufficient balances and that you keep these consistently to meet financial obligations. In that case, they are much more likely to provide you with the financing that you requested. It will also help you get a longer-term and lower rate than if you had lower day-to-day balances
A Good Credit Score
Do you have a good credit score? If not, you may find it difficult to get the cash advance you have applied for. A merchant cash advance company is a new creditor, which means they may want to view your past track record of payments, if they were on time, etc. If they find out you have had issues, such as a poor credit history, past defaults, or delinquencies, then you may not get the funding you requested from that provider
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Acquiring a Merchant Cash Advance
As you can see, there are several things that a merchant cash advance lender will consider when it comes to providing this funding. Be sure to keep the information here in mind, which will give you the best chance possible of getting the funding you need. Being informed will also help you secure this financing to help grow your business.
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