Actually, there are dozens of cash advance companies out there, and they all have different criteria for funding. Some of the more established companies can mold a plan more specific to the business at hand. While 1 year in business is a generally accepted practice, it is not the rule. You can usually go as high as $50,000 without requests for tax returns as well. Meaning, you should do your homework on the different companies out there.
I work for 2nd SOURCE FUNDING, and we work with 7 different Merchant Banks. To anyone who doubts the viability and size of the industry, we are currently funding between $10 and $15 million a month to merchants in all 50 states. We usually ask for the last couple months of bank statements and merchant processing statements, so we can assess the business as a whole and how your income is broken down. In some cases, we will forward you to one of our banks for a more traditional loan vehicle (though 650+ FICO scores and P&L`s are required).
Realistically, you can expect to pay between 25%-40% on the money. Refinancing options are available to merchants who pay on schedule.
In summary, this business is evolving and you should apply to more than one company to see who will offer the best terms. Also be cognizant of the fact that in most (but not all) cases, you will be required to switch your credit card processing company. Make sure your rates are not hidden and the fees inflated.
If you would like to learn more, feel free to contact me
Brian A. Baron
Executive Funding Specialist
877-700-7947 # 1912