Even though merchant cash advance providers require only a few requirements before handing out the money, they do not just simply approve all businesses' and companies' funding requests. There are things which underwriters consider before they approve a cash advance. By knowing this, you will be able to know how the alternative bank loan works. Providers do not just look at the business' credit alone. There are other items that they look at before they grant business funding for a small and medium company. Things that merchant providers look for in a business: Merchant Statements - Most companies require at least 4 to 12 months of business statements. Your business' processing history will give the MCA provider an idea on how consistent the business sales are and what can be expected in the next 6 to 12 months. Underwriters consider a number of factors including the number of charges per month, number of batches, and the average ticket. The volume of the business is also checked to see if the trend is consistent. For example: they compare the volume of January of the previous year and the January of this year. In case the volume is down by 50% for that whole year as a comparison, that raises the red flag. If the difference is just a slight decline, they may consider it as "advanceable". Bank Statements - The MCA provider looks at the business' bank statements and check for a number of things. If your business has a number of NSF's, it will be considered as a good thing. If the past five months was a tough time for your business but has just recently cleared up, the underwriter will take that into account. The average balance is also being looked at to see if your business is on the brink of bankruptcy. Lease Agreement - Providers typically will check for the business lease to make sure it is still valid during the repayment period. You must have a valid lease for at least one year to be able to be considered for an advance. Landlord Interview - Other MCA companies will interview your landlord and check if your current rental fee is the same as that you reported. If the lease is late, your business can still get the money for business, but there will be a stipulation in paying the landlord first with the residual funds going to you. These are among what most underwriters usually look for from business owners when analyzing a merchant for qualification for a business cash advance. If you think your business qualify for one, most reputable merchant cash advance providers such as Entrust Cash Advance (http://www.entrustcashadvance.com) will provide you with quick funding with very minimal paper works.
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