If your business requires financing or is short on cash flow, talking to an alternative lender could be the best choice possible. In many cases, a merchant cash advance can help a business to grow or even to stay operational. This type of cash advance involves a provider giving a business a lump sum of money. That sum is then deducted from the credit card receipts gathered by the business. The business pays a percentage of the receipts to cover the service offered by the provider.
The following are 3 of the top signs that your company might require financing such as a merchant cash advance.
1. Your Credit Score
Business owners with a low credit score may have trouble getting financing for their companies. While a high score is generally required to secure a conventional bank loan, this is not so when you get a merchant cash advance.
2. You’ve Been in Business a While
When offering this type of financing, a lender will be more concerned with how long you have been in business. If your credit score is not very high, but your business has been up and running for at least one year, you might qualify for a merchant cash advance.
Another top factor for the lender will be how consistent your credit card sales are. The lender will want to be sure that an advance can be paid back in a reasonable amount of time. If you do quite a bit of business in credit card sales, this type of advance could be extended.
There may be many times when you don’t have the cash flow you need to run your business properly. Don’t despair if you can’t qualify for a traditional loan. Instead, talk to a professional from Black Wolf Capital Group about the possibility of getting a merchant cash advance.