Merchant cash advance lenders can give an estimate of when the funds will be released into bank accounts, and then usually it takes another day for the funding to actually post into the account.  A mistake many merchants make is that they purchase that extra inventory they were looking for, or they pay off that vender that they owed, only to find that the checks they wrote bounced and they incurred NSF and overdraft fees from their bank.  Money should not be spent until there is confirmation that the funds have been wired or ACH’ed to the merchant’s account.

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Merchants be wary – sometimes brokers trying to earn business will have you fill out contracts, but later on down the line these numbers will change as they actually begin to underwrite the file.  This happens unintentionally sometimes as well, as some things down the line in the underwriting process come up, and the lenders realize that the numbers will have to change.

This is why we encourage all merchants here at merchantcashadvance.org to be fully honest and open about their business.  If they are late on lease or mortgage payments, tell the lender, because these issues will come up eventually in the deal.  If there are tax liens, derogatory credit, open bankruptcies or outstanding balances then make sure to explain this to the underwriter or sales representative.

After the merchant has signed the contracts the underwriter continues to check trade and landlord references.  If these come up derogatory, then that could possibly kill the deal, or at least change the numbers.  Be prepared to be flexible.

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