Business Tip #2 – How to Get Approved for a Merchant Loan

Although getting approved for a merchant loan is a lot easier than getting approved for a business loan from the bank; there are still some things that you should know. Below is a list of things merchant loan providers look at while considering your application.

Your credit report

Unlike the banks who put a lot of emphasis on your credit history; cash advance providers put a lot more weight on your business’s sales potential. That said; they still need to look at your credit history to help determine your eligibility.

Like I said; your credit score is not their main consideration. I have seen business owners with credit scores below 500 still get funded.

Qualifications for a business cash advance

Qualifications for this type of funding are pretty straight forward: You need to have owned the business for at least 4 months, and you must process at least $2,500 a month in Visa/MasterCard sales. If you meet those two simple requirements; then chances are you will be eligible for a cash advance.

Things that can hurt your chances for approval

Merchant loan providers want to make sure that your business is sustainable and that you are not going anywhere. There are a few things that could jeopardize your advance request;

Bankruptcy: A recent bankruptcy can hurt your chances of getting approved. If this is something you did over a year ago, they may be able to work with you. It is best to talk with someone and be open about any bankruptcies you may have had in your past.

Open tax liens: A tax lien is another thing that may cause concern. However, if you have made arrangements with the IRS an you have started a payment plan, then this is something else a cash advance provider may be willing to overlook.

Behind on your lease or mortgage payments: Being behind on your lease or mortgage payments can be a source of great concern for cash advance providers. Many of them have been burned in the past and are careful not to make the same mistake again.

If you are late one month; they may be able to help you. Any more than that and you are going to have some difficulty getting approved.

Merchant loan providers specialize in offering working capital for those who are having difficulty in getting approved for a traditional business loan. They are able to approve nearly 90% of all businesses that qualify, but they do have some limitations on who they can fund. If you are in need of working capital, use the following link to see how much you can qualify for MERCHANT LOANS. Regardless of your credit situation, you may be surprised what they can do for you.

Chris Ronk writes articles about business loans and merchant cash advances for http://www.businesscashadvanced.net.

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