Frequently Asked Questions

A soft credit pull typically does not impact your credit score, as it is considered a "soft inquiry" and does not involve a review of your creditworthiness for the purpose of making a lending decision. In contrast, a hard credit inquiry, which is initiated when you apply for credit, can impact your credit score, as it indicates that you are seeking new credit and may be seen as a risk to lenders.

A soft credit inquiry differs from a hard credit inquiry in several ways. While a soft credit inquiry does not impact your credit score, a hard inquiry can typically lower your score by a few points, although the impact is usually temporary. Hard inquiries remain on your credit report for two years, while soft inquiries are only visible to you and the companies that initiate them. Additionally, while hard inquiries are initiated by you when you apply for credit, soft inquiries are usually initiated by a third party for informational purposes only, such as a pre-approved credit offer or a background check for employment or rental purposes.

If a cash advance is based on your future receivables, it may not necessarily impact your credit score. However, it depends on how the cash advance is structured and whether it is reported to the credit bureaus.

If you obtain a cash advance from a lender that specializes in providing advances based on future receivables, it may not be reported to the credit bureaus, as it is not considered a traditional loan. In this case, the cash advance will not appear on your credit report and will not impact your credit score.

However, if the cash advance is reported to the credit bureaus, it can impact your credit score, regardless of whether it is based on your future receivables or not. If you make timely payments on the cash advance, it can have a positive impact on your credit score by demonstrating responsible borrowing behavior. Conversely, if you miss payments or default on the cash advance, it can negatively impact your credit score.

In summary, a cash advance based on future receivables may not necessarily impact your credit score, but it depends on how the cash advance is structured and whether it is reported to the credit bureaus. It is important to understand the terms and conditions of any cash advance and make timely payments to avoid negative impacts on your credit.

Yes, a business that took out a PPP loan or has an SBA loan, cash advance, or line of credit may still be eligible to apply for an ERC (Employee Retention Credit). However, there are certain limitations and conditions that apply, such as limitations on double-dipping and requirements related to the use of the funds. It is important for businesses to carefully review the eligibility requirements and consult with a qualified professional to determine their eligibility and the potential impact on their existing loans or financing arrangements.