If you’ve been looking for a source of alternative business financing and have applied for a Merchant Cash Advance (MCA) only to be denied by the MCA company, you may not be sure what to do next.
In this blog from Progressive Business Capital, we’ll discuss a few steps and strategies that you can use to give yourself the best possible chance of being accepted when you apply for a new MCA – even if you’ve been denied in the past.
1. Ask the MCA Funder Why You Were Rejected
Your first step should be to contact the MCA provider directly and ask why your application was rejected. Often, this information will be included on your rejection letter and other such documentation, but if it’s not, there’s no reason not to contact the MCA provider and get more information from them.
Once you know why your application was rejected, you may be able to take steps to improve your chances of being approved in the future. For example, if the provider says you already have too many liabilities, you may want to focus on paying down existing business debt to improve your odds of being approved in the future.
2. Do your Best to Bring in more Credit Card Sales at your Business
The primary metric used to determine your eligibility for a merchant cash advance is your total volume of credit card sales. More sales and a higher overall percentage of money coming in through credit cards means that you’ll be more likely to get an MCA.
So do your best to make sure customers can use credit cards easily. Display the credit cards you accept prominently, don’t charge extra fees for their use, and don’t set a “minimum sale” for credit card purchases. If you can increase your overall credit card sales, you’re more likely to be approved for an MCA.
3. Make Sure Your Application Was Accurate & Filled Out Properly
Sometimes, silly errors or mistakes on your application could lead to disqualification from an MCA. Something as simple as forgetting to add another “0” to a particular figure or writing a couple of incorrect dates on your application could result in a rejection.
So, make sure that your application was accurate and filled out properly, and if you apply with a different MCA provider, double-check that application before you send it in to avoid any mistakes or errors.
4. Try Another MCA Provider – Not All Providers have the Same Requirements
Even if you’ve already been denied by one MCA provider, that doesn’t mean that you can’t try to apply with a different MCA provider.
Each MCA provider has different application requirements related to things like the total time your business has operated, your monthly credit card sales, and other such factors. It doesn’t hurt to “shop around” and see if a different MCA provider is willing to give you a merchant cash advance.
5. Weigh Your Options for Other Types of Funding in the Meantime
Even if you can’t get an MCA, it may be possible to get a small line of credit from a bank, use a business credit card, get a small business loan, or find another alternative for short-term business funding. Do some research on these other financial products and see if one of them may be a good option for you!
Need A Merchant Cash Advance? Explore Your Options with Progressive Business Capital
At Progressive Business Capital, we offer options for MCAs and personal small business loans. If you are in need of some working capital for your small business, our team is here to help. Contact us online or give us a call at (800) 508-4532 to explore your options and get the cash you need for your small business in as little as 24 hours.