subject: What precisely could I do if I have been declined for a business cash advance? [print this page] Would you suggest I apply for a starter advance if we have been turned down for a standard merchant cash advance? We have already answered that in a previous article and video with an absolute no. So what options do you have if you have been declined?
So what do I do?
First determine precisely why you were rejected for a merchant cash advance to begin with. Solve those issues and then reapply.
Let's examine the normal possibilities for decline and anything you could possibly do regarding this.
1. Tax liens or judgements
For people with either one of these it may be the reason that you were rejected for a merchant cash advance. Having them may not be the reason behind the decline but the lack of a repayment plan may very well be. If you possibly could show you happen to be on a payment plan then most will ignore it. So my bit of advice would be to set up a payment plan.
2. Bounced checks
Plenty of NSF on a bank statement could possibly be good reason for decline by a merchant cash advance company. For those who have some then I would suggest managing your cash flow a bit better and do everything possible never to bounce a check. When you can show a good trend and show clean bank statements then you have greatly increased your odds of approval.
3. A low credit score
Poor credit can be quite a challenge to repair yet not unfeasible. The first thing to try and do is pull your credit and see what's on it. There's a lot of businesses saying they will give you credit reports completely free. According to the Ftc, annualcreditreports.com is the only authorised resource by the FTC for the absolutely free annual credit file. You can pull it free once annually with all three credit reporting agencies. The one thing you might have to pay extra for is if you'd like to know the actual overall credit score that's not provided inside the free report. Usually merchant cash advance companies want to see as a minimum 525 or higher. If your credit score is in the high 500's, then I wouldn't waste too much effort with your credit. It is in all probability not the actual cause of decline.
But if your credit needs some help then you can certainly either fix it yourself or get the help of a credit repair company. If you don't have time, you may choose a credit repair professional. There are a lot of them around. The idea behind what they do is straightforward. They take a look at your credit and then challenge items in your report. They might be valid items but once they file a letter disputing them, the original creditor has a certain certain period of time to reply and verify that the item in your report is legit. If they don't respond in a timely manner, then it comes off. The more negative items off leads to a greater score.
Absolutely nothing talked about earlier is simply too tough or time intensive unless you undertake the credit fix yourself. So if you were declined for any merchant cash advance don't despair. A few quick fixes and you may have the money you want.
What precisely could I do if I have been declined for a business cash advance?
