The companies who do not have a good credit card history are still eligible to get a Merchant cash advance to get their company funded. Merchant cash advance is very beneficial for the small and mid-sized companies. It funds these companies to grow and gain revenue.
Due to a high number of small businesses that have bad sales, they find it difficult to get the traditional bank loans. Therefore merchant cash advance is the best alternative to get the loans. Merchant cash advance is the popular way of getting the loan among many entrepreneurs. This loan is easy to get and quicker funding for any type of developing company. It does not even require some complicated requirements.
Merchant cash advance (MCA) is known as business cash advance. It is a funding process through the credit card factoring. The cash advance lender takes a little percentage of your credit card sales from the borrower. Usually this percentage varies from 12 to 20 percent of your monthly credit sales. the monthly repayment money is deducted from the monthly sales to the business cash advance lender. This process continues until you pay the cash advance to the provider.
Requirements to get the business cash advance:
1. company in operation:
The main requirement to get a business cash advance is that your company must be operating from the past 6 months or more. You have to give the evidence to get the loan.
2. credit card transactions:
There must be a record of your past credit card transactions of the last 12 months. if a company does not have any credit, there is no way to get a business cash advance from any lending company.
3. personal guarantee
Every cash advance lender wants to be sure that the money is going in to the right hands. The borrower would return his money. This is why the borrower has to give personal guarantee that he would return his money back and within time.
4. legal company
Your business must be legal and accepted to get the loan from the lending companies.
5. good credit card score
Your company must have a 650 of credit card score. If your credit card score falls less than 650, it is likely not to get a business cash advance from the lending company.
If you fall within these requirements, you can get business cash advances easily.