Question: How much do I qualify for?
Answer: One of the first things people ask when they first inquire about a merchant cash advance is “How much can I get?” While it’s always hard to give an exact number without looking at all the specifics, our general rule for qualifying amounts are that you typically qualify for 1.5 to 2 months of whatever the average monthly credit and debit card sales are for your small business are.
That being said there are a number of factors that play into what that final number is. One of those factors is the industry that you’re operating in. There is a huge difference between the credit and debit (POS) sales for a retail clothing store and for a convenience store. Typically, a retail clothing store’s POS sales will represent about 85-95% of their total sales where as a convenience store’s POS sales only represent around 40% of their total sales. That means that while a convenience store may qualify for $10,000 according to our “general rule” they might actually qualify for either more or a great rate based on the fact that their POS sales represent such a low percentage of their total sales.
Another important thing to be aware of when it comes to how much you qualify for with a merchant cash advance is that providers look at an average of your POS sales. That way any seasonality, or growth is taken into account when establishing what you may be eligible for and in turn your advance is something you can easily manage!