What is an asset based loan? An asset-based business line…
Did your merchant cash advance company approve renewal, then denied it?
Merchant cash advance approval renewal but then denied it
You can be denied for a merchant cash advance for a lot of reasons. When a merchant cash advance company denies your approval, they will typically send you a letter explaining why you were rejected. It can be challenging, and tough, if your renewal is approved – but then later denied. The letter the merchant cash advance company will typically tell you about what info they gathered, and what reasons were responsible for the rejection. Based on our experience, we typically see merchant cash advances rejected for the following reasons:
- Trouble verifying your company information
- Abnormal sales patterns
- Negative balance in your account
- Applying way too soon after paying off another existing loan
- You took another loan
- You’re in a high risk industry
There are some other factors which can impact your loan approval, such as being unrealistic about the money of money you want to borrow. When you apply for a loan, it’s important you always make sure the amount of money you are borrowing is reasonable, and you can show how the funds will be used. You should have a detailed plan on how the money will be used, what expenses it will be used for, and how you’ll make enough money to repay the merchant cash advance.
What happens next
When you’re declined for a loan, it can feel like the world is over. The good news is there are steps you can take to qualify for a loan with another merchant cash advance company. For example, there are numerous high risk merchant cash advance companies that specifically might handle your type of business loan.