The application process for merchant financing is quick and easy — far from the complicated and long process of traditional small business loans. Once your financing is approved, you can typically receive the money in your bank account within one to two business days. Check out the requirements below to determine if you can get approved for an MCA.
Financial Documents
To get started, fill out an application online or call Clarify Capital at (877) 838-3919. You’ll then be matched with a dedicated adviser who will walk you through the entire process. Here are the general requirements and documents we may request:
- Your Social Security number or employer identification number (EIN)
- Bank statements, credit card statements, or payment processing data from the last three months
- Tax returns
- Financial statements, such as a balance sheet or a profit and loss (P&L) statement
- Length of Time in Business
- Loan providers use the length of time you’ve been in business to assess your creditworthiness and their risk of not getting paid. An established business typically translates to lower risk on their part. To qualify for a merchant financing loan, most lenders require that you’ve been operating for at least six months.
Monthly Income
Lenders look at your monthly income to determine if you have the cash flow to pay them back. They also use it to calculate your loan amount. Most MCA providers ask that you have at least $10,000 in monthly revenue. Obviously, if you’re bringing in more than the minimum requirement, your chance of getting approved for a larger amount is also higher.
Credit Rating
Your credit rating represents your payment history, the amount of debt you have, and the length of your credit history. As a business owner, you should continually monitor your personal credit score because it’s one of the factors lenders check whenever you apply for loans.
Debt-to-Income Ratio
The debt-to-income ratio is a metric used by financial institutions like banks to compare the amount of debt you have against your overall income. MCA companies use the debt-to-income ratio to measure and calculate what you can reasonably afford to pay. As a result, someone with a lot of debt is usually considered a riskier applicant. Ideally, lenders want borrowers to have a low debt-to-income ratio because it means they’re more likely to make their monthly payments on time without difficulty.
Thinking of Starting a New Business?
Now is the time! With our society ready to get back in action (safely), new business concepts are quickly emerging with creative flows for serving the public without the high risk of spreading the virus. Put your innovative business concepts into play, and connect with us to get the funding you need to start your newest venture!
Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584
