Merchant Cash Advance...can I get a cash advance with bad credit?

Maybe you have been turned down by a bank for business funding and are wondering whether or not you will qualify for a merchant cash advance if you have bad credit? The short answer is yes. I should have said probably. Let me explain.
Most funding companies will accept business owners with a credit score above 525 and if they meet certain other criteria. I guess the question is what do you consider bad credit. If you are that person with a 525 or a 560, you have a good chance of getting approved but here is an idea of what else underwriters will be looking at. They will look at your merchant statements to make sure you have consistent volume over a period of time usually four to twelve months. Remember because you are not signing a personal guarantee, the only assurance the funding company has of you paying the advance back is if your credit card volume stays consistent. They will look at your average ticket. The lower the better but most will take up to a $500 average ticket. Some will take higher. They also want to see a large number of batches, usually 12 or more in a month.
They will also look at your credit report regardless of your score and see if you have any judgements and liens. If you have a payment plan and can show them a copy of this plan along with a cancelled check, they will overlook it. They also want to see your bank statements and want to see if you have any NSFs. They want to see trending. If you had 12 six months ago but had only one last month, then you are probably ok.
But let’s say you are below a 525 and have some other issues, maybe NSFs, you can still get approved. There are a couple of starter programs out there. Basically it is a trial advance. The funding companies will advance you only a small percentage of what they normally would, maybe 20-30% of your monthly credit card volume. Then they will see how well you pay it back. They may require you to get two smaller advances and once you display you are a good risk, they may give you an amount that you would have gotten if your credit was better.
So if you need cash, the banks won’t give you a dime, and merchant cash advance companies have said no, don’t despair. There are a couple of options but you may have to prove you are a good risk before you get all the money you would like. If you are credit challenged and need funding, check out a merchant cash advance.