Merchant Cash Advances can be used for a variety of uses, not just expansion and marketing campaigns. In some cases, a business owner will come to us in need of working capital to catch up on past due bills and other debts such as tax liens. Unfortunately not everyone will qualify for a merchant cash advance. In some cases a merchants needs are are just too far outside of our program parameters. However, some of the merchants who come to us for working capital are already on payment plans, or have made arrangements to settle their debts. These are the merchants we can often work with and provide merchant funding.
One of the more common cases is back rent payments that are due. One of the final steps our underwriters take is completing a landlord/mortgage reference to ensure the merchant is current with their rent. When a merchant is severely behind on rent, they run the risk of eviction, and therefore putting them out of business effectively nullifying the merchant cash advance contract. So it is very important that we complete this step. If a merchant is behind on rent, and the back rent due is less than 2 months, we can use split funding to pay the amount of back rent owed directly to the landlord and the balance to the merchant.
Simon’s Shoe Repair owes his landlord $1500 for back rent. Our underwriters confirm with the merchants landlord to see if he is willing to accept money directly from us to satisfy the back rent owed. (Generally, most landlords have no problem with this action) Simon’s Shoe Repair is then approved for a cash advance of $10,000. We will obtain his landlords checking information, and will then ACH Simon’s Shoe Repair $8,500 and his landlord $1,500 satisfying the back rent, and giving Simon an extra cash infusion.
If the merchant is more than 2 months behind, this is a clear indication of a lack of ability to pay their rent. We conclude that if a merchant is not able to sustain their current rent, while getting 100% of their credit card sales, they will not be able to sustain it while giving us roughly 20% of their sales and unfortunately will be declined.
So, please give us a call at if you need us working capital for your business and owe back rent to your landlord. We can assist paying back rent, while giving your business the merchant cash advance infusion you need. Please visit our website for more information, www.fastmerchantadvance.com.