If you’re looking for a quick, easy, and flexible way to get funding for your business, a merchant cash advance (MCA) could be a good choice for you. These loan alternatives allow you to access a lump sum of cash upfront in exchange for a percentage of your future credit card sales.
Merchant cash advance requirements tend to be different than for a traditional business loan. This may make it easier to get approved, even if you have credit issues or a significant amount of outstanding debt. There are many different merchant cash advance direct lenders to choose from, and each lender sets its own eligibility requirements.
To ensure your small business will be eligible for a merchant cash advance, it’s helpful to compare several lenders. Here are a few important factors to consider.
Maximum Advance Amount
Start by considering the amount you need to borrow, then look for offers that meet your needs. Most lenders have both minimum and maximum advance amounts. For example, Zinch offers merchant cash advances ranging from $10,000 to $250,000. Of course, the amount you’re eligible to receive depends on a variety of factors, including the monthly amount of your credit card sales. Many lenders allow you to pre-qualify online, so you’ll be able to see exactly how much business funding you can get. This can help you narrow down your lender options.
Eligibility Requirements
Merchant cash advance direct lenders review a number of factors to determine whether a business owner qualifies for an MCA. This typically includes the length of time you’ve been in business and the volume of your monthly credit card sales. The lender may also review your credit score, although this is often not a deciding factor for MCA approvals. When comparing lenders, review their eligibility requirements and try to choose one that works with businesses like yours.
Documentation Requirements
In most cases, the application process for an MCA is quick and simple. Typically, you’ll be able to submit everything online in about 10 minutes. It’s likely that you’ll need to submit some documentation, such as a copy of your bank statements and your driver’s license. However, if an MCA lender requests a slew of documents, this could be an indication that it may be more difficult to qualify with them.
Factor Rates and Fees
The cost of a merchant cash advance is important, so make sure you take the time to read each offer carefully. Pay attention to the term length and the repayment frequency. Also, note the factor rate (similar to an interest rate) and any other fees the lender charges.
Once you’ve narrowed your list of MCA lenders down to those you think will approve your application, be sure to complete an apples-to-apples comparison so you can make sure you get the best deal. You may consider using a merchant cash advance calculator to help you determine the total borrowing cost of each MCA offer.
Approval and Funding Wait Times
One of the advantages of an MCA is that you can typically get the cash you need within a few days. If speed is important to you, be sure the lender you’re considering offers quick turn-around times. For example, Zinch typically approves applications within 24 hours and you can expect to receive the funds in as little as 48 hours after you’ve been approved.
Some other lenders require several days to review and approve applications and up to a week to provide funding. If you need money fast, this could be an important deciding factor for you.
Reputation, Reviews, and Ratings
Lastly, it’s important not to simply jump on the first lender that is willing to approve you. While being able to qualify for an MCA is a priority, keep in mind that not all merchant cash advance direct lenders are equal.
Before you commit to doing business with a lender, take a moment to check out their reputation, reviews, and ratings. This can help you choose a reputable lender that stands by its products and provides excellent customer service.
Check Your Eligibility with Zinch Now!
If you’re looking for a highly-rated merchant cash advance direct lender, you’re in the right place. Our representatives are available now to help you determine your eligibility for an MCA. Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours.
