Merchant Cash Advance Qualifications
Citi Wide Merchant Funding uses a number of data points to qualify your business for our merchant cash advance program. To understand how we determine whether or not your business qualifies we have put together this guide to helping you prepare for the application process.
1. Do you accept credit cards as a form of payment?
A merchant cash advance leverages your credit card processing sales as an asset. The finance term for merchant cash advance is actually credit card receivables factoring. Factoring receivables is a financing method used by companies of all sizes in many industries. Typically a firm would factor accounts receivables or inventory. Restaurants, retail shops and businesses with under $25MM in annual sales however would not have the sales volume for this form of working capital to make sense. By averaging a sample of your credit card sales we are able to determine the strength of your cash flow and sales. If you don’t accept credit cards not to worry, Citi Wide Merchant Funding offers a number of other business financing programs that you can qualify for.
The economic conditions of the most recent business cycle have led to a drop in small business owners credit scores. At Citi Wide Merchant Funding we work with small business owners with all types of credit scores. Even if your credit score is in the high 400′s we can work out competitive business financing.
3. Tax Liens
If your business has tax issues please disclose these to your account representative at the beginning of the application process. Your account representative works on your behalf. By knowing the complete picture about you and your businesses financial situation he can make a powerful case to the merchant cash advance underwriting team to push for an approval.
4. Rent / Mortgage Status
Citi Wide Merchant Funding will contact your landlord to verify that your lease is current. Again disclosure is your best friend. We have worked with many of our clients landlords to make sure that a potential borrower can receive a merchant cash advance.
Qualifying for a merchant cash advance is a much more straightforward process then a small business loan from a retail bank. It requires no personal financial information so we do not ask for personal tax returns, a personal guarantee, or collateral.