You have your reasons for obtaining a merchant cash advance for your business. By now you have an idea of what the advance will be used for and whether it is a worthy use or not. You have done your research to find the appropriate company to offer the merchant cash advance as well. Now you just need to know the process for how to get the merchant cash advance and what the company requires from you. The steps provided here will help you prepare for the application process.
- When you apply for a merchant cash advance you need to fill out an application. The application is normally found online at the company. Enter the company name, when you want the advance to start, and the amount you require. You also need to fill out the section regarding projected sales.
- There are documents you have to submit with the application. These documents will need to show the last four months of merchant statements. In this case, how much have you made in the last four months on your credit card sales?
- A copy of your driver’s license should be included in the packet document. The company will have to verify your identity. This means the picture must be clear and readable if you want the application process to be quick.
- Also include a copy of a voided business check. The check will be used for the direct deposit method merchant cash advance companies use. They will take the information to access your accounts in order to put the payment in there. It is a lot quicker than waiting on a mailed check to process.
- Most merchant advance companies also want a copy of your business lease. The lease determines how much you have to pay out in expenses for the building. If you own the building outright with no debt it will help you get the approval on the application.
- Utility expenses and other business expenses can be incorporated in the application too, though the company does not ask for it. You should at least consider these expenses in determining the amount you get loaned. In this way you know you can afford to repay the cash advance without compromising your other bills.
If the application is approved it will take within 24 to 48 hours. You will then see the payment in your account up to 7 days later. The first cash advance normally takes the longest because the account is being set up. If you continue with the same merchant cash advance company for a second deposit it should take less time. You can renew your account to keep it in play even if you have already paid back the existing cash advance. You have to pay back at least 65 percent of any cash advance before you can take another, though companies do vary on this point, so double check with the choice you have made.
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