The short answer
- The biggest factor is how much money comes into the business each month.
- Steady sales and fewer existing balances usually mean a larger offer.
- Ask for what you need, not just the most you can get.
What decides the amount
- Monthly sales: the more money that comes in each month, the larger an offer can be.
- Steadiness: sales that hold up month after month count for more than one big month.
- Time in business: a longer track record gives more to go on.
- Existing balances: advances or loans you are paying back now leave less room.
- Your industry: some kinds of businesses are seen as steadier than others.
Why a bigger offer is not always better
The more you take, the more you pay back, and the larger the payments that come out of your sales. The right amount covers what you need and leaves the business room to breathe. Know what the money is for, and roughly how it will pay for itself, before you decide how much to take.
How to get the strongest offer
- Apply with current, complete information.
- Tell your advisor about every balance you are paying.
- Explain what the money is for. A clear plan helps.
- If you have large contracts or orders coming, say so.
See the numbers before you decide
Every offer is different. Before you sign, you see the amount you receive after fees, the total you pay back, and how the payments work. If it does not fit, you say no, and that is the end of it.
