Where do you head over to get a loan when banks don’t accept your loan request? A Merchant Cash Advance can be a suitable funding option! A Merchant Cash Advance (MCA) supports a business in need of superfluous financing since every small business owner needs cash time to time. If your business wasn’t approved for a Merchant Cash Advance in previous attempts, no need to worry at all. You are not the only one who faced rejection.
Once approved for a Merchant Cash Advance, the lender will take a specific portion of your upcoming credit card sales and you’ll obtain a single sum amount. If you’ve been rejected for a Merchant Cash Advance in past, there could be several reasons behind it.
Lenders have their own criteria to consider the Merchant Cash Advance application and most of them scrutinize credit card purchases, monthly sales, and financial factors. To get approved for a Merchant Cash Advance, it is necessary for you to meet the lender’s requirements.
Approaches to get approval for the next time
Is your business facing tough time qualifying for a Merchant Cash Advance? Are you tired of being rejected again and again? Here we have listed few steps that you can follow to amplify the chances for getting a Merchant Cash Advance approval.
- Get the rejection reason from the Lender
Aren’t you curious to know the reason behind loan application rejection? If yes, then, seek help from alternative lenders who offer Merchant Cash Advance and they will guide you thoroughly. Once you get to know their requirements for a loan application, you might be able to follow them for the next time.
Furthermore, you are supposed to act professional and remain calm while communicating with the lender. Don’t ever let rejection bring you down. Alternative lenders like Merchant Advisors check your bank account and financial statement before lending a MCA. After understanding their requirements, make sure you fashion the loan application accordingly.
- Wait until you acquire further credit and payments
When you apply for a Merchant Cash Advance, the lender is able to purchase a specific part of your future sales via credit card for a limited time. For this purpose, lenders scrutinize your existing and previous credit card sales. If you are not generating credit card sales, it will be a tough decision for a lender to give you a loan.
However, if your sales via credit card increase soon, you have to show the significant growth to a lender for getting fund. If you a startup or your credit card sales are currently low, it is more suitable for you to wait unless credit card sales update.
- Counterbalance your possibilities
Cash advance is a superlative option to go with the financial needs of a business. If you’re facing problems in application approval think about the alternate options of funding such as small business loans, business lines of credit, and credit cards. It might be possible that other types of funding will be suited more to your financing needs. For example, suppose your clients don’t use a credit card regularly but your business sales receipts getting increased. So, in this case, a small business loan will be a better option to get a loan.
- Recheck the loan application
Being a business owner, it is obvious that you are always in a hurry and missing important points while filling an loan application just because you’re handling a couple of tasks at a time. It’s imperative to focus on every single task while finalizing the loan application. Dismissing the necessary data or putting miscalculated figures in an application can be the causes for loan application rejection.
Some lenders help you to correct the mistakes you’ve made and others consider these mistakes a reason to discard the application. Always review the application form before submitting and make sure that information is correct. All it requires a couple of minutes to audit.
What if you got rejected again?
Rejection is just a word, nothing more than that and we need to consider rejection as a positive learning experience. Through learning, you’ll get to know the reason behind application rejection more accurately and then you can improve your next loan application request.
If a lender has declined you, find out another Merchant Cash Advance lenders. It might be possible that they set lenient policies for getting a Merchant Cash Advance.
Lastly, rejection is not the end of the world and you can go for other options. Weigh your options and find out the better ways to fund your business. If you’re set on Merchant Cash Advance financing, ensure to follow the tips in order to amplify your odds of getting approved next time!
If you need more guidance regarding Merchant Cash Advance to meet your financing problems come over to our website and read blogs. For daily updates and financial solutions, follow us on Facebook (@Onlinecheck) and Twitter (@Onlinecheck). In case of any query feel free to call at (833) 827-4412 and our financial experts will support you 24/7.