How To Prepare Your Company For a Cash Advance

There are many types of small business loans that can help you remodel your facility, hire more staff, or prepare you for an emergency. If you want freedom to use your funding the way you wish or have few assets to offer as collateral, consider applying for a merchant cash advance. Here are a few ways to prepare your business to request this type of financing.

Think Where You Will Use The Funding

Before you apply for this type of loan, determine where you will utilize the cash that you will get. While there are fewer restrictions on the money that comes from a merchant cash advance, it is beneficial to your organization if you have an amount that you need when you turn in the paperwork. Get estimates for what you are considering using your financing for then compile the figures into a report that you can submit to the lender. You may want to add a little extra to the final total if your budget will allow. This will cover any emergencies or increase in material costs if they come up.  

Analyze Your Credit

Check your credit score before you begin your application. This will be an important consideration for the company that you work with when they make the decision to approve your paperwork. If you feel that it is too low, review what debts are still outstanding and make arrangements to rectify them. Collaborate with your financial institution to remove any items that are settled but are still attached to the report. As you gather this information for your merchant cash advance, make copies of your credit card statements that indicate the payments coming to you. Since this type of lending involves these transactions, the lender will want to know that you accept this form of tender so that they are certain they will receive their money. 

Be Alert For Questions

Get your reports and application together as quickly as possible and send it in for consideration. Watch for any sort of response from the lender in the event that they have a question or need additional information. You will wait a long time for an answer to your request if you ignore their correspondence. This can hold up any building projects that you have planned or leave you in a precarious situation if you have an emergency. The sooner you give them an answer, the quicker you will have the cash that you need for your business.