Can a Home Based Business Get a Merchant Cash Advance?
Yes. Funders fund home based businesses regularly, as long as the business has its own bank account, steady deposits and a real way to show it operates. Expect a few questions about how the business works, since there's no storefront to check.
What do funders look for instead of a storefront?
Without a lease or a sign on the street, a funder confirms the business in other ways. They look at your business registration, your website or online listings, invoices to customers, your deposits and sometimes a short video or photos of your workspace. For service businesses that go to the customer, a vehicle with the company name or a customer contract carries weight.
Which businesses often run from home?
- Contractors, plumbers, electricians and other trades that dispatch from a home base.
- Online retailers and marketplace sellers.
- Bookkeepers, consultants, designers and other professional services.
- Cleaning, landscaping and home care companies.
- Food businesses operating from a licensed kitchen outside the home.
What makes a home-based file strong?
Steady deposits into a business account in the business's legal name, a registered entity and clear separation between household and business money. Home based owners mix accounts more often, so cleaning that up has an outsized effect. A funder reading a clean account for a home based business sees the same thing it sees for any business: revenue, balances and payments.
How do funders verify a home address?
Use the same address on your filings, bank account and funding paperwork. If your business uses a mailbox address, tell us, since some funders need the physical address where the work happens. Mismatched addresses are a common cause of delays at the verification stage.
Does working from home change the offer?
The offer is sized the same way it is for any business, mostly from deposits and balances. Some funders treat very small home based businesses as higher risk and offer smaller amounts to start. After you've paid one advance well, the second offer usually improves.
Do zoning and licenses matter?
Some cities require a home occupation permit or a business license for work done from home. Funders don't usually ask, but having the license in place helps prove the business is real and avoids problems with the city later. Check your local rules if you haven't.
What if customers never visit?
If customers never come to your home, say so. Funders care that the business operates. They don't need customers walking through your front door.
How can Afterfirst help with this?
Call 877-FUND-654 and tell us what your business does and how customers find you. Send your statements and your business registration, and we'll match your file to funders that are comfortable with home based businesses.
What else do owners ask about this?
- Why would a funder call my landlord or visit my business?
- Do I need a business bank account to get an MCA?
- Can a nonprofit get a merchant cash advance?
More short answers on this topic are on the your business and your file FAQ, and the funder fit checker runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.