Qualify

To qualify for a small business loan, most lenders will require that the merchant has been in business for at least 6 months, and has processed credit cards for 6 months.  Most businesses that receive funding by this specialized form of financing are restaurants and retail shops – however just about any business that processes credit cards can potentially qualify.  The qualification process is free with most companies.  Personal credit does not play an especially important role to receive a small business loan, provided that there aren’t numerous outstanding issues.

Many times, business owners with tax liens and past due creditors still get funded, and so this should not dissuade a merchant from attempting to obtain a small business loan.  Since the merchant cash advance involves private lenders, what one lender might not fund, another will.

Most lenders request at least the last 6 month’s merchant processing statements, the last 3 month’s bank statement and a filled out application.  The lender’s underwriting office will generate numbers based on past sales, projecting into the future, and also based on the business’s bank statements and cash flow.

To read about the underwriting process!