Business cash advances have recently turned into one of the most popular types of business funding. Many business owners now choose a merchant cash advance instead of applying for a traditional business loan. Lots of hard-to-approve businesses are given a perfect opportunity to get access to working capital thanks to business cash advances.
To get a business cash advance, you should find a reliable and trustworthy business loan provider like firstamericanmerchant.com. First American Merchant is a reputable business funding provider and payment processor that specializes in the high risk sector. With FAM, merchants can enjoy exceptional financing opportunities, regardless of their type of business. FAM boasts an A+ rating with the BBB.
One of the important things you should take into account when applying for a cash advance is how to be able to get a cash advance without being scammed? So, what to focus on?
- Annual Percentage Rate (APR)
You should be able to compare an offered product to other alternative options so to have a benchmark to evaluate the deal. The costs of merchant cash advances and short-term loans aren’t measured in terms of APR as it’s done in the case of bank loans. A cash advance provider charges a flat fee, no matter how quickly or slowly you pay off the loan. Fortunately, there are ways you estimate APR for merchant cash advances and short-term loans. Having the APR makes it easier to compare products and figure out if you’re getting a lump sum with a reasonable convenience.
- Formal Reviews
To get a 2nd opinion, look for reviews. They can help you compare a great number of similar products and make the right decision. Take the time to research well and get to know the company you’re going to deal with well.
Look for business cash providers that will offer you incentives, trying to encourage your repeat business. You may find providers that will encourage you to pay off the flat fee early. The shorter the term, the higher the annual percentage rate. Others will reduce the flat fee if you pay the debt off early. Incentives may also include products that are like lines of credit, meaning they allow you to use them as needed; better rates; and easier qualifications for returning customers.
If you’re looking for a business cash advance provider, take into account the above mentioned points so to avoid being scammed. Do some research, compare all your options and make the right decision.