It can be easier to get approved for a merchant cash advance than for another type of small business loan because the risks are lower for lenders, so you don’t have to offer up any collateral or have a perfect credit history. However, there are still certain criteria that you need to meet if you want to take advantage of a business cash advance.

For example, if your business is less than a year old, or if you have ever filed for bankruptcy, you will usually not qualify for a merchant cash advance loan. Of course, it is also essential that you already have the capability to process credit card payments, and that these play a significant role in your business.

Just like any other means of financing, there are a couple of questions to consider before applying for a merchant cash advance:

1. How does seasonality affect your sales volume?

2. What is your percentage of credit card sales?

Knowing the answers to these questions will help our business advisors to better serve your unique funding needs.

Because of the way that a merchant cash advance loan works, it makes sense for small and growing businesses that rely heavily on credit card sales. If you have strong, regular sales then you can be confident that you’ll be able to pay back the loan without your business taking the hit.

A merchant cash advance is also a good option if your sales are going strong but you don’t have a great credit history behind you. While you might struggle to get approval for other types of business financing, a cash advance for business might be just the right fit.

For the right business and the right circumstance, a merchant cash advance offers certain advantages over many other financing solutions:

Fast approval

Bad credit doesn’t have to hold you back

Flexible and affordable repayments, rather than a fixed amount

Lower risk than a traditional loan because you don’t have to put up any collateral and your repayments are deducted from actual sales

No need to manually keep on top of your repayments or face fees for late payments

You can use your cash advance for a wide range of business purposes, from buying new equipment to bridging payroll.

It is important to be clued up about how a merchant cash advance stacks up against other types of loan, so be sure to speak to one of our business advisors to find out whether it’s the right choice for you.