We already discussed first five requirements in part I of this loan. In this article we’ll look at five more requirements to make it easy for you to get a business loan.
Regardless of whatever reason you need the merchant services loan for, you need to show some sort of collateral to the concerned lender. Collateral is something that you will have to give away should you not be able to pay back your merchant services loan to your merchant services company.
Many amateur entrepreneurs make the mistake of offering private collateral in the form of their car papers or turn over their houses so that the bank can grant them the startup loan. If the loan can not be repaid in the allocated time, then the collateral, that is the house will be liquidated or turned over to the lender for compensation of the loan which was initially given.
- Strong credit history
Having a strong credit history helps in more than just applying for a loan. With a strong credit history, being hired is not a problem, and no matter how big your loan is, it will be granted because of your clean track record. But if you do not get it, you should ask questions like ‘what is a business cash advance?’ and look for cash advance lenders only. They offer no credit check loans and businesses can easily get bad credit loans from any of the merchant cash advance company found on merchant cash advance companies list.
- Business plan
Your business plan should be thorough and complete. Your merchant services loan provider will only trust you with the money if your initial business plan is thorough and clear. You must have a full working setup for the coming years and a compiled description of your startup will need to be submitted to merchant loan companies. However, not all merchant loan companies may be this stringent, but almost all banks are. Not having such a business plan shows that you are not ready to go into the next step and your funding will stop. So make sure, the business plan you include covers everything from stats to unique analysis.
- Profit loss statements
Your profit-loss statements are the crux of your work. They show just how much money you have made and how much you have lost. That is a very important factor cash advance lenders consider before giving any money. So the three things you need to control throughout your business is: trust, professionalism and ethics. These three things will ensure that profits exceed losses and banks and lenders have less problems trusting you with their money.
- Loan knowledge
It is always recommended that you do your homework about the loan before applying as it can make a difference as to what you need and what you find. You should look for questions like ‘what is a cash advance?’ ‘what is cash advance fee?’, ‘what is cash advance interest rate?’ and ‘what is a business cash advance?’ so that you are well informed. Banks and lenders will leave no stone unturned to maximise their profits so in order for you to make the best out of your deal, you need to research what kind of loans are offered and what kind of loan would suit your requirements best.