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Get a Merchant Cash Advance Without Being Scammed

A merchant cash advance can be described as purchases of future credit card sales receivables or short-term business loans. The demand for merchant cash advances (MCAs) is growing with rapid advances.

The MCA industry came into existence as one of the most important sources for non-bank loans for many small businesses. Today, you can find many online funders that offer cash advances to small businesses that wouldn’t have historically been approved for a business loan from a traditional bank.

It’s important to note that the industry is largely unregulated, so you shouldn’t trust all the companies offering a merchant cash advance. Below you can read several important points that can help you make the right choice when applying for a merchant cash advance and avoid getting scammed.

  • The costs of merchant cash advances aren’t measured in terms of APR the way bank loan costs are. The thing is that MCAs don’t accrue interest over time. It’s important for you, as a borrower, to calculate the APR for MCAs so to be able to easily compare the available products and be sure you’re getting a lump sum with a reasonable convenience fee.
  • Don’t fail to get a second opinion while making your choice. Formal reviews can be quite helpful since they provide a comparison of a wide range of similar providers. Make sure to go through the available reviews before taking out a merchant cash advance. Get to know the company you’re dealing with better so to avoid winding up in serious debt down the road.
  • Turn to a reliable and trustworthy merchant cash advance provider so to get the lowest possible rates and the best terms in the field. A reputable alternative online lender like First American Merchant can approve you for a merchant cash advance without any challenges. (FAM) is an award-winning business funding provider and payment processor that serves both traditional and high risk businesses, and offers unmatched business financing opportunities to merchants of any type and size.

The true professionals in the field will offer incentives to encourage your repeat business. This can be done by encouraging you to pay off the flat fee early. Also, a reputable MCA provider will reduce the flat fee if you manage to pay back the debt early.

A merchant cash advance is a quick and easy way to gain access to working capital for your small business. Take this smart move if you need business funding without having to wait out the bank’s small business loan process.