Marcel opened his dream candy store a little over a year ago. His store is the only one of its kind within miles, and everyone goes to his shop when they need to satisfy a sweet tooth. Since business is prospering, and Marcel has had some time to get his feet wet as a business owner, he is now ready to take on a new challenge; opening a new location in another city. All he needs now is a little more money to finance his latest business venture. Marcel decided that applying for a merchant cash advance would be the most lucrative route for him and his business. But after conducting an online search for “merchant cash advances,” he was astonished by the abundance of merchant cash advance lenders, and struggled in his decision of which company to work with. As a business owner, you can probably relate to this story. Choosing a merchant cash advance lender can be a difficult process. In order to eliminate the confusion of this process, there are a few things that you should consider when choosing the merchant cash advance lender that is best for you. Unnecessary Costs Most lenders will not charge a slew of additional costs upon approval of a merchant cash advance. With some business transactions, closing costs are required. These are costs beyond the price of your item of purchase that are usually paid at the close of your transaction. Before choosing a merchant cash advance lender, make sure that there will be know closing costs in addition to the fee for the cash advance. You also should not have to pay interest on a merchant cash advance. Unlike business loans, most merchant cash advance companies will not impose interest rates. Monthly Credit Card Sales The amount of credit card sales that your business processes each month can be one of the factors that determine which lender you can receive a merchant cash advance from. Before approving a loan, most lenders will require you to submit a certain amount of your business’ most recent, consecutive credit card statements. This is to determine whether or not your business can support a merchant cash advance repayment. Usually, you will be required to provide three to six months of credit card statements, giving lenders an idea of your average monthly income. You may be required to process anywhere from $1,500 to $5,000 in monthly credit card sales. If your company is seasonal and you are not sure if your monthly credit card sales will drop below the requirement during the off season, consider choosing a lender with a lower minimum monthly requirement, or a lender that requires submission of at least 12 months of credit card sales documentation. How Long Have You Been In Business? Some merchant cash advance lenders require that a person owns a particular business for at least one year before becoming eligible to receive a merchant cash advance. Others only require the lender to have been in business for 60 days. If you have been in business for over a year and process over $5,000 each month in credit card sales, you obviously have a wider range of options when it comes to choosing a merchant cash advance lender. However, if you have only been in business for a few months, and you need cash immediately, you will have to look for a lender that does not have a requirement of one-year business ownership. cash advance online same day | slick cash loan How Quickly Do You Need the Money? With any lender, the initial application for a merchant cash advance is not a very long process. And after receiving all of the necessary documentation, most lenders can approve your cash advance in a couple of days. But, the amount of documentation that is required to process and approve a merchant cash advance may vary. Some lenders require only an application and documentation of monthly credit card sales. Other lenders require these in addition to bank statements, lease agreements, photo IDs, voided checks, etc. If you are in a hurry, try choosing a company that requires the least documentation, this may make for a speedier process. Making sure that you have all of your documents ready to go, can also expedite the process. In an ideal situation, you may be able to have your money within seven to 14 days of approval. CategoryGeneral Post navigation Previous PostPrevious Arizona Medical Marijuana Dispensary RulesNext PostNext The Heresy of Instrumental Music in Public Worship Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.