After declaring bankruptcy, businesses often struggle to piece themselves back together. How can you save money, establish good credit, and achieve good financial health again?
You may have been told to take out a merchant cash advance, i.e., an advance on the money that your business is expected to make. As a type of quick loan, a cash advance can come in handy when you’re in a bind.
If you recently declared bankruptcy, can you still qualify for a merchant cash advance? Or will you get rejected? Keep reading to find out.
1. High Approval Rate
Merchant cash advances have high approval rates. This means you can easily qualify for one, even if you recently declared bankruptcy.
You don’t need a great credit score; experienced lenders are more than willing to make exceptions so long as you have a robust business plan and are capable of steering your business in the right direction.
If you have promising projects lined up and actionable strategies in place, you’ll easily qualify for a merchant cash advance after bankruptcy.
Recommended Read: 3 Questions to Ask Before Getting a Cash Advance
2. Favorable Terms
The top business loan agencies provide high cash advances that help borrowers stabilize their businesses with ease.
Whitestone Fund provides cash advances of up to $1,500,000. You’ll be required to make payments every week or every two weeks over a 6 to 36-month cash advance duration.
The advance will ultimately be created with your unique requirements and expectations in mind. Many people who file for bankruptcy and take a merchant cash advance manage to rebuild their credit within 2–3 years.
You’ll have to work hard to prove that you’re capable of following a budget and generating the expected revenue. Once you get approved for the loan, you’ll have to assiduously see your plans through. The hard work will pay off.
Once a lending agency trusts you enough to provide a cash advance, they won’t pester you about how you plan to utilize the funds. This is a big relief for companies that recently filed for bankruptcy and don’t want the added stress of being forced to share their plans and updates every other day.
Cash advances are extremely flexible. Spend the money as you deem fit without worrying about how your spending will be perceived. If you have a great plan in place that will yield a high ROI, stick to your guns.
We do, however, recommend working with a business consultant who can help you stay on track and prevent a similar situation from reoccurring. As you restructure your finances and change your approach, you’ll manage to give your business the boost it deserves.
Recommended Read: 4 Types of Projects That Can Benefit From a Merchant Cash Advance
If you’re considering taking out a merchant cash advance in Yonkers after bankruptcy, Whitestone Fund should be your first stop. As an experienced, trusted, and reliable business financing company, we provide flexible cash advances and business loans with great terms. Contact our business loan agents to get started!