Get Started Today & Speak With An Advisor
SIMPLE APPLICATION
Our simple 15 second online application can get you matched with offers in minutes.
NO MINIMUM FICO
Bad credit? No problem! Most of our top financing options have no minimum FICO.
LARGER AMOUNTS
Get matched with the best financing options with the highest funding amount.
SAME DAY FUNDING
Our Fintech Speed can get you in and out of Underwriting in just a few hours, and same day funding!
What Do You Need To Qualify?
3+ Months in Business
$5,000+ Monthly Gross Sales
No Minimum FICO
You can qualify for our top financing options with as little as 3+months in business.
The minimum revenue to qualify for financing options are $5,000 per month, or $60,000 in annual gross sales.
We have financing options for all credit profiles. There is no minimum FICO score required to apply.
Juan C, CA
Type of Business: Auto Body Colission
Amount: $15,000 FINANCED!!
Month: July
Omar, CA
Type of Business: Food Truck
Amount: $22,000 FINANCED!!
Month: August
Ricardo, FL
Type of Business: Auto Repair
Amount: $35,000 FINANCED!!
Month: July
What is a small business financing?
So, what is a small business financing? Simply put, a small business financing is any funding option specifically designed for a small business. Small business financing allow existing or startup companies to borrow money from various lenders. Various financial options exist to help entrepreneurs meet different goals. The way each financing works depends on the type of financing.
There are many business financing options on the market and it can be beneficial to go over just a few of them.
Funding arrangement - A standard bank financing type . You receive the funding and pay off the principle plus interest over time.
Equipment Financing - An excellent way for a growing business to get an edge. You receive the equipment upfront and pay it off over the life of the equipment.
Accounts Receivable Financing - If you have large amounts of outstanding invoices, you can borrow against them. The invoices act as collateral and AR Financing offers lower rates.
Merchant Cash Advance - A merchant cash advance is borrowed against future credit card sales. A borrower then pays back a percentage of daily CC sales to the lender. So, you never have to see the payments!
Business Line of Credit - A business line of credit works just like a non-physical credit card. The owner of a small business is extended a line of credit and is charged the interest only or what is spent.
Requirements to Apply for Merchant Cash Advance
While specifics may vary slightly, the general merchant cash advance requirements include the same primary elements.
Credit Scores
Since you assume responsibility for the merchant cash advance, your credit score matters and plays a large part in determining the financing amount. Keep in mind that if you have more than one owner, the bank will want to see credit scores for everyone, along with the overall business credit score. Before heading to the bank to apply, it may be in your best interest to check your credit report for any inaccuracies. Also, if you are close to a higher threshold, you may want to take steps to boost your score that little bit.
Business Banking Records
The bank needs to see your business banking records to assess the foundation and assign a rating, which determines how much the business can borrow. Try to abide by the following tips to make sure you are in good standing:
-
It’s ideal to maintain a steady balance with regular deposits to demonstrate consistent revenue and responsible financial management.
-
Avoid overdrawing your account and set up overdraft protection.
-
You may want to ask for a bank reference from your company’s banking institution. It could go a long way in convincing a lender.
-
Of note, most lenders like to see companies in business for at least 6 months, so you may be asked to show time in business as well.
Keep in mind that there are key numbers the bank will look at when determining your rating and loan amount. Lenders like to use a broad approach, so they will want annual gross sales along with monthly numbers for the following:
-
Gross margin
-
Cash flow
-
Debt to equity ratio
-
Accounts payable and accounts receivable
-
Earnings
Monthly Sales Volume or List of Collateral and Assets
Some lenders ask for collateral while others do not. However, most lenders request that you list company assets on the application. They want to know what could cover your obligations in the event you can’t repay the financing. Alternatively, you can provide proof of sufficient deposits into your business bank account that can provide confidence to the lender that financing payments can be met.
Benefits of Merchant Cash Advance
So, what type of funding do you need? Wondering “where can I go to get a merchant cash advance for a new business?” Merchant cash advance can help you reach many of your business goals. They can help you keep control of your profits and business, avoid problems with family or friends, and protect you from putting your personal assets at risk.
Your need for capital will vary from smaller, short-term financing for purchasing equipment, buying new or additional inventory, and leasehold improvements to more extensive, longer-term financing for expansion projects and growth.
At other times you may only need a simple line of credit to purchase products and services, meet payroll, or finance accounts receivable. CB Insights reported 29% of businesses failed because they ran out of cash, despite the new options for merchant cash advance.
Steps to Getting a Merchant Cash Advance
-
Gather required documents needed for funding
Having these documents accessible when applying will expedite lender approval and will determine the terms and amount.
-
Social Security number or Tax ID
-
Business licenses and filings
-
Tax filingsProfit/loss statement, balance sheet, bank statements
-
Review individual lender for additional documents
-
​
2. Understand Different Merchant Cash Advance Options
Traditional Bank Financing: These financing usually provide a fixed amount that the borrower must pay back in monthly increments. The most common financing for an existing business is a line of credit, in which the borrower has access to funds from the lender. These financings have lower interest rates than non-traditional but require higher credit scores.
Revolving Lines of Credit: A revolving line of credit allows a borrower to borrow up to the credit limit like a regular line of credit, but the key difference is, the credit limit returns or revolves back to its original amount once a borrower pays back borrowed money. A credit card is the most common form, but credit cards are advisable for only small purchases. Other forms of revolving credit will be better options for large needs.
SBA Financing: These are financings from the federal agency the Small Business Administration. The SBA doesn’t directly issue financings but minimizes the risk to private lenders who administer them.
There are many more business financing options that we can connect you with. Please view our full list of business financing options.
3. Apply
With your research complete, and information and documents in hand, a small business can take the steps needed to keep it going during this time of uncertainty. Business experts advise to not wait until the aid is desperately needed. Applying and being approved will provide access to what may be vital funding.
Still not sure which merchant cash advance works for you? Complete a 1-minute application with PrestaLoan.biz and speak with a Business Financing Advisor.
To get the most out of your funding for your business, knowing the ins and outs of various merchant cash advance types and rates is essential.
Rates will be dependent upon the type of financing for which you are applying. There is also some variation depending on the amount you need and the specific terms.
The truth is that merchant cash advance rates from alternative lenders can also be higher than traditional bank financing. However, there's a tradeoff: while some business owners may not qualify for financing through a traditional lender, an alternative lender can fill that gap.
The average merchant cash advance rate can range somewhere between 10 percent and 36 percent. An SBA financing has a bit narrower range; from 8.5 percent to just over 11 percent.
What Are Average Merchant Cash Advance Rates?
How to Get a Merchant Cash Advance Without Collateral
Obtaining a merchant cash advance without collateral requires some due diligence. Here are a few things you can do to increase your chances.
Get Your Credit Score in Shape
If you lack collateral, the only thing you have to offer is your reputation, which is essentially your credit. One way to raise your score is to lower your credit utilization ratio; which is one of the only ways to get a merchant cash advance with bad credit.
Determine Cash Flow Projections
It’s important to know you can repay the debt and how. Otherwise, you will have trouble convincing lenders you will be able to repay your financing.
Once you have everything you need to qualify for a merchant cash advance, go find the lending option that secures your financial future. There are many lending options ready to put you on the right track.