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Why You Should Consider Alternative Lending to Increase Your Company’s Revenue

The world of alternative lending has changed. Once a semi-lawless arena with high rates and shady contracts, the merchant cash advance industry in particular has become more legitimate with oversight and controls that keep merchants safe. Even mainstream organizations like Amazon, eBay, and AmEx OpenExchange are getting into the act. According to The Green Sheet, the market for merchant cash advances is nearing $700 million. If you are a small business searching for an alternative lending strategy, look into applying for a merchant cash advance

If your business has bad credit or wants a short term loan, banks may not be the best solution.   Merchant cash advances help merchants in the high risk industry or those with bad credit, secure fast, short term loans. MCAs provide cash advance loans against future credit card sales to reduce lender risk.

Small businesses seeking merchant cash advances must beware of illegitimate MCAs. To keep alternative financing safe, many lending professionals must follow some precautions:

  • Does the lender know your business?
  • How reliable is the management team of your funding partner? What is the source of their capital?
  • What are the terms of the transaction? How much interest are they charging? How do these costs compare with your other funding alternatives? How will costs affect business profits?
  • Get a copy of the actual contract. Find and talk to customer references who have worked with the provider in the past.
  • Will the provider fit seamlessly into your operation? Will they collect invoices due from the company’s customers? This will affect the relationship between your company and vendors/customers.

High risk merchants can now receive merchant cash advances without fear of being scammed or having their customer relationships jeopardized. Alternative lending is a viable solution for merchants with bad credit or who need a low hassle loan without all the red tape. First American Merchant is a credible third party alternative business funding provider that is extremely experienced in high risk account management. Make FAM your alternative business funding provider today. Contact us to start your application now.