Why qualify fast
Collecting documents for a deal no lender will fund wastes the merchant's time and yours, and it ends with a disappointed merchant. A few direct questions early on tell you whether to push ahead, set different expectations, or point the merchant somewhere else. Ask them conversationally, not as an interrogation, but get answers to all of them.
The must-know facts
Five-minute qualification
0 of 12- Time in business (TIB)Time in business (TIB) is how long a business has operated, usually counted in months from formation or start date. Funders set minimums by product.
- PositionsA position is one open cash advance on a merchant's account, numbered in the order taken: first position, second position and so on.
- NSFNSF means non-sufficient funds: a payment bounced because the account was short. In MCA underwriting, NSF counts per month are a core risk signal.
Reading the answers
| Answer | What it suggests |
|---|---|
| Under about $10,000 a month in deposits | Very few MCA lenders will look; consider whether financing helps at all |
| Under 6 months in business | A narrow set of lenders; set expectations on amount and cost |
| Three or more existing positions | Only lenders that take later positions; check whether another payment is affordable |
| Restricted industry (for example cannabis or adult) | Only specialist lenders, or none |
| Many recent NSFs | Likely declines this month; a cleaner month may change that |
| Steady revenue, 2+ years, 680+ credit, no positions | May qualify for a bank line or term loan, which costs less |
A no is useful too
Telling a merchant honestly that their deal is not placeable today, and what would change that, earns more future business than a week of chasing documents for a certain decline.
How the CRM helps
Record the answers on the lead in Ferrylend and they carry over to the deal when you convert it. Once the deal has its revenue, time in business, credit and positions, lender matching shows which of your lenders it fits and which rule rules each one out, so your five-minute read is checked against real criteria.
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Related lessons
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- Reading bank statementsWhat underwriters look for in business bank statementsFunders ask for three to four months of statements plus month-to-date. What each figure on those statements tells an underwriter, and what to check first.
- SBA, lines of credit and term loansTerm loans vs MCA vs lines of creditA side-by-side table of term loans, merchant cash advances, lines of credit and SBA loans: speed, cost, paperwork, credit, repayment and who each one suits.
- Help centerTurn a lead into a dealCreate the merchant, its owner and a new deal from a lead in one step, or add the deal to a merchant you already have.
- Help centerHow lender matching worksEvery deal is checked against the criteria of every active lender program of its product, with a pass, fail or unknown result per rule, a reason you can read, and whether the file is ready for that lender.