A Business Advance is not the cheapest financial product a business can secure, nor does it come with the longest terms. However, it is the easiest financial product to get approved for. For many businesses, an advance, is the first step in building a relationship with lenders. If used properly, a business advance can be a great option.
How to qualify?
Gross Revenue - You must meet minimum revenue standards of $120,000/year. Requirements may vary by industry type. Our specialists can help you find out if your business meets this requirement.
Time In Business - The business must be established and active for at least 3 months. Some businesses may get approved without meeting this requirement if they excel in other areas.
Credit Worthiness - The business owner should have a decent credit profile. A strong history of credit repayment goes a long way in securing an advance. However, we have approved owners with 550> Fido’s in the past
Positive Balances - Lenders want to see how you manage your revenue. Businesses with weak daily ledgers seldom get approved. You must show strong daily balances and cash in your bank account.
Industry Type - Requirements may vary with different industries. Reach out to us so we can guide you regarding the requirements necessary to get your business approved.
Stable Revenues - Funders look at the consistency of bank deposits month to month. When revenues constantly fluctuate up and down - it becomes more difficult to secure a favorable advance.
When is a Term Loan the right solution?
A business advance is an amazing option for newly established businesses. It is a perfect opportunity to start building credibility and building a relationship with lenders. On the other hand, advances can be expensive. A business owner should consider an advance for 2 reasons. First, they were denied other products. Second, the business needs a cash infusion in the next 24 hours.
Expert’s Insight
An advance can either make a business or break a business. Wise business owners use these funds to targets the aspects of their business that have the largest upside potential.
Fundela can help you decide whether a business advance is the right fit for you and your business. Our team of experts will guide you through the application procedure and submit all the proper documentation to maximize your chances of securing the funds you deserve.
