Financing your working capital through your merchant account can be the fastest way to get money when you need it, provided you understand the ins and outs of the application and repayment process for your merchant cash advance. Both are quite different from traditional bank loans, which are typically not designed for short-term capital. When using an MCA, timing, and clarity of purpose are everything.

1. Apply a Week or Two Before You Need Money

It typically takes three to five business days for approval decisions, which is incredibly fast for the loan industry. Funds go out 24-48 hours later under most circumstances, and that means you only need to apply a short time before you commit the money. If you are doing repairs that means you can minimize downtime. If you are getting ready for a seasonal demand change, you want to stock up as close to the expected demand surge as possible to save on financing costs.

2. Include Your Complete Income Information

The income through your merchant account is the most important consideration when lenders review your merchant cash advance application, but it is not the only vital information. Paint a complete picture of your income, because if the lender knows you can meet all or part of your overhead with income from other sources, you may get offered a bigger advance or lower fees.

While credit scores are not the most essential part of the application process, lenders do still consider risk, just with other tools. MCA lenders set the repayment at a percentage of your merchant account income, so the easier it is for you to operate without that percentage, the better.

3. Invest Wisely

Once that cash comes in, you need to put it to use in ways that yield those windfall returns, and the faster the better. MCAs are designed for fast repayment, and since the payment scales with your income, it is possible to take care of the whole advance with just a month or two of brisk sales, especially if you have a holiday rush or a major local event that will drastically increase your customer base for a limited time.

The merchant cash advance is often the go-to cash management tool for food service, entertainment, and retail businesses because of the fast application process and the way that major events can be harnessed to cover the cost of the capital with ease. For more information, talk to a lender representative at a financing firm that offers this service.