Business Credit Building with Wise Guys In Ties
Connect with us on Social!

Merchant Cash Advances for Individuals with Bad Credit

Yesterday we talked about 2 types of loans you could use Revenue-Based Lending and Revenue-Based Credit Lines. Check out Part 1 here.

But what if those aren’t available for your business. Well here is another way to get cashflow and have bad credit. Merchant Cash Advances. . .

Merchant Cash Advances

Most business owners are not familiar with Merchant Cash Advances. Merchant Cash Advances leverage your positive credit card processing history to get you approved, and not your personal credit scores. This is a great benefit to those who don’t have good personal credit to qualify for traditional lending.

Merchant cash advances are just like revenue-based lending except the lender only looks at your merchant account sales for qualification. This means they only look at your credit card sales to determine your approval amount’ This is not like revenue-based lending where the lender looks at all your business’s cash and check deposits. This type of financing is even easier to qualify than revenue-based lending.

With a Merchant Cash Advance, the money is advanced to you based on how much you process each in credit card transactions each month. Merchant cash advance loans can be obtained up to $250,000 depending on how much you process each month in credit card transactions. With Merchant cash advances, the lender advances you money against your future credit card sales. 

You can usually get approved with only $5,000 in monthly revenue and only six months in business, whereas revenue-based lending requires at least one year in business and over $10,000 a month in revenue. 

You can get approved with a credit score as low as 500, and without any collateral. Approvals and funding can all be obtained in as little as 48 hours with a bank and merchant statement review. Rates are usually higher with merchant advances than with revenue lending, but the approval is easier.

In most cases the lending source will request that you change your merchant services processor to theirs, this merchant services processor is the company that you process your credit cards through.

REQUIRED TO QUALIFY: Consistent cash flow

LOAN AMOUNTS: $5,000 – $500,000

We’d love to help you grow cashflow for you business, and establish business credit, even without your SSN, this year. Schedule a time with us today at: calendly.com/bizcred/consult

Leave a Comment: