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get a business cash advance

Merchant cash advances (MCAs) have recently turned into a highly popular type of business financing. An MCA is ideal for those small businesses with steady cash flow, but poor credit that need quick access to working capital. It’s no surprise that bad credit can make it challenging for businesses to get approved for a bank loan, so an MCA is really a fine funding option to try. However, when applying for a merchant cash advance, you should be cautious not to be scammed. What to do?

  1. Take into Account the APR (Annual Percentage Rate)

Failure to compare one option to other alternatives will make it easy for scammers to lure you into their trap. The costs of MCAs and short-term loans aren’t measured in terms APR as it’s with bank loans. The reason is that merchant cash advances don’t accrue interest over time: instead, you’ll be charged a flat fee regardless of how quickly or slowly you pay back the loan. Be aware, the money you’re receiving will be costly. However, it’s possible to calculate the APR for merchant cash advances and short-term loans so that it won’t be difficult to compare the available merchant cash advance options.

To avoid being scammed, get a business cash advance from First American Merchant, a reputable business loan provider and high risk payment processor. FAM’s popular cash advance offers the lowest possible rates in the industry. First American Merchant is an award-winning alternative online lender that is rated A+ by the BBB.

  1. Get a Second Opinion

Consider formal reviews so to have a second opinion while making your choice. They can help you draw a parallel between similar MCA providers and make the right decision. Having additional information about the MCA provider you’re going to deal with will only be good.

  1. Look for Incentives

Reputable business cash advance providers offer incentives so to encourage your repeat business. They may encourage you to pay off the flat fee early. Incentives can also be in the form of better rates and easier qualifications for returning customers.

  1. Focus on the Contract

Make sure you understand the contract terms since terms may vary from provider to provider. What are the withholding rates included? What’s the reduced profit?

  1. Don’t Forget about Hidden Fees

Look for hidden fees. Focus on monthly/late/penalty fees, balloon payments (a repayment of the outstanding principal sum made at the end of a loan period, interest only having been paid hitherto) and indemnity clauses (a contractual transfer of risk between two contractual parties generally to prevent loss or compensate for a loss which may occur as a result of a specified event), and flexible withholding rates.

Knowing what to focus on when applying for a business cash advance will help you get a better idea of what you’re entering and avoid being scammed. Take the time to research well and find a reputable business cash advance provider to turn to.