Research your options: Understanding the different types of financing available to you, such as term loans and merchant cash advances, can help you determine which type is right for your business. Make sure to compare interest rates, repayment terms, eligibility requirements, and more before making a decision.
Gather documents: Collecting the necessary documents prior to applying for a merchant cash advance will help the process go more smoothly. Commonly requested documents include bank statements, tax returns, and financials such as income statements or balance sheets.
Apply: Once you’ve chosen the right financing option for your business and gathered all of the required documents, apply for the merchant cash advance. The application will ask for information about your business and its financials, as well as any personal information required by the lender.
Get approved: After submitting your application, you’ll receive an approval or denial within a few days. If you are approved, you will receive detailed information regarding repayment terms and fees.
Sign the agreement: Review all documents carefully, then sign and return them to the lender. You will be responsible for adhering to all repayment terms outlined in your agreement.
Use the funds: The funds from your merchant cash advance can be used for any business purpose you deem necessary. Be sure to use the funds wisely and always follow your repayment plan.
Repayment: Most merchant cash advances are paid back through daily or weekly deductions from your business bank account. The lender should provide you with a repayment schedule that outlines how much will be deducted each time and when it will occur.
Monitor your progress: Keep track of the payments you have made and how much you owe in order to ensure that your merchant cash advance is paid back on time.
Celebrate: Once your merchant cash advance is repaid, celebrate! You have taken a big step towards financial success as a business owner.
