Can I Get a Merchant Loan?

If you own a retail and/or service-oriented business, chances are, you could use some extra cash. Maybe you want to expand, find more customers, or even redecorate…who knows? For over ten years, merchant loans have made a way for small business owners to get fast cash for their businesses in spite of bank loan ineligibility. You could be next. But first, you need to determine whether you qualify.

How Much Do You Process in Credit Card Sales?
To be eligible for a merchant loan, your business must process at least $3,500 in monthly credit card sales. Depending on your business’s monthly credit card sales, you could receive up to $500,000 for your business. Then your business’ daily credit card sales are used to repay the merchant loan. A small percentage of these sales is automatically deducted until the advance is repaid (usually in about seven months).

If your business processes less than $3,500 in monthly credit cards sales, you may still qualify for a starter merchant loan, in which you can receive a small amount of cash (up to $7,000). When you repay this amount, you become eligible for a larger merchant loan.

How Long Have You Owned Your Business?
Eligible merchants have owned their businesses for at least six months. Providers want to be sure that your business is processing a steady amount of monthly credit card sales before they provide a merchant loan. You will be required to submit your last four months of merchant statements when applying for a merchant loan. Again, if you’ve owned your business for less than six months, you may still qualify for a starter merchant loan.

Check Your Business Lease
Your business lease should have at least one year remaining in order to qualify for a merchant loan. Why? Merchant loans are completely unsecured, no collateral is required and neither is an excellent credit score. Merchant loan providers take greater risks than most lenders. Therefore, they want to make sure that the borrower will remain at his/her business location until the merchant loan is repaid.

Have You Filed for Bankruptcy?
Merchants with unresolved bankruptcies will not be eligible to receive merchant loans.

Get a free online quote today to find out how much you can get in your merchant loan!
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