The merchant cash advance is a fast way to access working capital for a business that relies heavily on credit card transactions or other electronic payment sources. It is based on the income through that source alone, the payments are flexible with your income, and approval is typically decided within five business days of an application submission. So what goes into a successful application?

Income Statements

You’ll have a form to fill out with basic contact information and details about your business, but the really important issue is how much money your business makes through its merchant account. The lender will also be interested in your total income. If your merchant account income is significant but not actually necessary for your business to pay its bills, that changes the risks involved with a larger advance. Demonstrating proof of your business income for at least the last 90-120 days is a must.

Credit Reports

You probably won’t have to submit any information about your credit score, but you might have to fill out an extra application form to allow a full credit check on your business. You may also find lenders who want to check your personal credit. The merchant cash advance is very seldom approved or denied on someone’s credit score, but good credit can lower your rate, so it does come into play.

Additional Requests

After the initial application and credit check forms are sent in, company representatives from the MCA company usually make contact via phone or email to discuss terms and request any necessary additional information. If you are tentatively approved, the lender’s representative will probably request proof of your business license and confirmation of your tax ID to get the ball rolling. As long as those additional pieces of documentation check out, you typically get the money within a day.

Make the Most of Your Contacts

The times when you make personal contact with a lender’s representative are important, and not just because they involve requests that need to be filled out before you get your advance. Those conversations are also your chance to ask any questions about the structure of the merchant cash advance, the mechanics of repayment, or any other relevant questions about the product. Picking the brain of your contact person for details can help you understand how to get more out of your next advance, lowering your costs of capital and making it easier to access larger amounts.