Marcel opened his dream candy store a little over a year ago. His store is the only one of its kind within miles, and everybody goes to the shop of his when they have to satisfy a sweet tooth. Since business is prospering, and Marcel has had a while to get the feet of his wet as a business owner, he’s now ready to have a brand new challenge; opening a brand new place in another city. All he needs now’s a bit more money to finance the latest business venture of his.
Marcel decided that applying for a merchant cash advance will be the most profitable route for him and the business of his. But after doing an internet search for “merchant cash advances,” he was astonished by the abundance of merchant cash advance lenders, and struggled in the decision of his of which business to work with.
As a business owner, you are able to likely relate to this story. Choosing a merchant cash advance lender can be a hard procedure. To get rid of the confusion of the process, there are a couple of things which you must think about when selecting the merchant cash advance lender that’s ideal for you.
Most lenders won’t impose a slew of extra costs upon approval of a merchant cash advance. With a few business transactions, closing costs are required. These’re costs beyond the cost of the item of yours of purchase which is paid at the close of the transaction of yours. Before selecting a merchant cash advance lender, ensure that there’ll be know closing costs in addition to the fee for the cash advance.
Additionally, you shouldn’t have to pay interest holding a merchant cash advance. Unlike business loans, many merchant cash advance companies won’t impose interest rates.
Monthly Credit Card Sales
The quantity of credit card sales that your business processes every month are able to be one of the factors which determine which lender you are able to get a merchant cash advance from. Before approving a loan, many lenders are going to require you to post a specific amount of your business’ most recent, consecutive credit card statements. This’s to find out if the business of yours is able to help support a merchant cash advance repayment. Generally, you’ll be expected to offer 3 to 6 months of credit card statements, giving lenders an idea of the average monthly income of yours.