Can I Get a Merchant Cash Advance with Poor Credit?

Yes, it is often possible to obtain a merchant cash advance (MCA) even if you have poor credit. Unlike traditional loans that heavily rely on personal credit scores when evaluating eligibility, MCAs focus primarily on your business’s sales volume. This shift in focus allows many business owners with less-than-ideal credit histories to access essential funding.

Here’s how the process works for businesses with poor credit:

1. Sales Volume over Credit Score: In the world of MCAs, your business’s credit and debit card sales play a critical role in determining your eligibility. Lenders assess your average monthly sales to gauge your ability to repay the advance. If you can demonstrate consistent sales performance—including meeting or exceeding certain minimum thresholds—you may qualify for an MCA, regardless of your credit situation.
2. Impact of Credit History: While poor credit is less of an obstacle for securing an MCA, it can still influence the terms of the advance. Lenders may review your credit history to help determine the factor rate, which will subsequently affect the overall costs associated with the cash advance. A higher factor rate may be applied to businesses with poor credit, resulting in higher repayment amounts. Thus, it’s essential to understand that while accessing an MCA is possible with poor credit, the financial implications may differ from those with better credit profiles.
3. Flexible Solutions: At Canada Business Loan Experts, we specialize in working with businesses that have a range of credit profiles, including those experiencing poor credit. Our team is dedicated to finding the best financing solutions tailored to your unique needs. We believe that every business deserves an opportunity for growth, and we strive to offer flexible options to help you move forward despite past credit challenges.
4. Personalized Assessment: If you’re considering a merchant cash advance, we encourage you to contact us to discuss your specific situation further. Our team can assist in evaluating your eligibility for an MCA, considering both your sales volume and credit history. We aim to provide a customized approach to your financing needs, ensuring that you have the support required to make informed decisions.

Even with poor credit, MCAs can offer a viable option for accessing the funds you need to propel your business forward. If you’re ready to explore your options or want to learn more about the MCA process, reach out to us today—we’re here to help you every step of the way.