Most entrepreneurs need additional financing for their businesses at some point. As a business owner, one option to consider to help you stabilize cash flow and spur company growth is a merchant cash advance.

Here are some things to keep in mind when deciding whether this form of funding is right for your business.

Determine That the Product Fits Your Business

Merchant cash advances generally involve the purchase of credit card receivables. For this reason, they work very well in retail stores, service businesses, restaurants, and other industries in which credit card sales figure prominently. If credit card sales comprise a significant portion of your company’s income, then a merchant cash advance may work for you.

Calculate the Amount of Funding You Need

Prior to submitting an application, determine what you need additional funding for and calculate an estimate of the amount you require. You may need to hire additional personnel, purchase needed equipment or supplies, or expand to a new location. Have an amount in mind when you submit your application to the lender.

Submit Paperwork Promptly

Once you have initiated your application, complete the forms and provide additional documentation promptly. This will ensure that you receive the funds you need as soon as possible.

Compile Credit Card Statements

To assess the suitability of your business for a merchant cash advance, the lender will want to see some of your recent credit card statements. Have these ready to submit so you can expedite your application.

Check Your Credit Score

Your business credit score is a factor in your application for a merchant cash advance. Before you approach a lender, find out your company’s score and the minimum score required by the lender for approval. Compare the requirements of several lenders, as they are not all the same. If your credit score is too low, work on improving it, and submit your application after you have raised it to an acceptable level.

For more advice on applying for a merchant cash advance, look to Elevation Financial.