Qualifying for a Merchant Cash Advance: 3 Criteria To Meet

Merchant cash advance loans can infuse money into your business when you need immediate funding. They are a fast solution for organizations that need cash now based on future sales. Texas Funding Solutions provides companies with various loan options and resources to help them continue operations and remain successful.

What Is a Merchant Cash Advance?

Merchant cash advance loans are similar to paycheck advances for individuals. The main difference is that merchant advances are specifically for businesses. With a merchant cash advance, you can receive money in advance of sales that you anticipate in the future. Texas Funding Solutions' cash advance offers range from $20K to $1 million. Merchant advances provide flexible repayment terms that work around your needs, allowing you up to 18 months to pay off the balance. These loans don't have any industry restrictions. A cash advance can help you build up a new business until you get regular clients or assist in expanding an established business. Getting approved for a cash advance is often easier than a traditional loan. If you're considering applying for a merchant cash advance, here are three criteria you need to meet:

1. Be in Business for at Least Three Months

A merchant cash advance can help new businesses when they cannot get other funding. Since you only need a business history of three months, you can apply for one of these loans shortly after organizing your company. Your business can use the loaned money to buy equipment, develop a marketing strategy, and cover other business expenses. Other business loans can require you to have a history of at least a year or longer before you apply. 

2. Meet the Minimum Annual Revenue Requirement

At Texas Funding Solutions, our cash advance loans require applicants to have a minimum annual revenue of $250K. There isn't a required minimum profit amount to qualify, but businesses must provide evidence of regular income. You can prove this with current bank statements and tax returns. Applicants are not required to have real estate or other collateral for loan approval. The loan amount you qualify for is based solely on your annual revenue or sales from your business. 

3. Meet the Minimum FICO Score Requirement

Though approval for the loan isn't based on your credit rating, you will need a FICO score of at least 500 to apply. You don't need a perfect credit history to qualify for a merchant cash advance. You can have tax liens against your business and still be approved. If your company has gone through bankruptcy, you can still qualify as long as the bankruptcy has been dismissed or discharged. If banks or other lenders have turned you down, you can still be approved with Texas Funding Solutions. 

Apply for Merchant Cash Advance Loans with Texas Funding Solutions

When you need fast cash for your business with flexible repayment terms, consider applying for a merchant cash advance loan with Texas Funding Solutions. We make it easy to get approved, and we can fund the loan within 24 hours of approval. If you meet the minimum credit score, business operation time, and annual revenue requirements, visit our website to get started on your application.