At some point during the course of your business, you may need to borrow capital. You might need the money to purchase inventory or equipment, or to keep operating until profits increase again if it's a slow period for your business. Regardless of the reasons, there are many financial institutions that can provide the funding your business needs.
However, not all of them can get you the cash in a timely manner. Often, there is a process to follow before the cash is provided, and in some cases, it could be months before you receive the capital you need. Luckily, merchant cash advance companies don't keep you waiting. This type of company can get you the cash you need much quicker than many other lenders, because they are not actually providing a loan, but cash in advance in exchange for a portion of your future sales.
Your business must meet some requirements in order to be eligible for a merchant cash advance:
If you meet all of these requirements, you can usually receive the cash advance within a few days. As with any major financial decision, you want to do a little research first so that you can make an informed decision and choose the right company for your needs. Performing your due diligence is essential to finding a reputable merchant cash advance company. Following the tips and tricks below will help you make the best choice.
Once you have gathered together a list of all the merchant cash advance companies you might seek to do business with, you can start eliminating some of them based on their reviews. Look for reviews from multiple sources, as some reviews might not be genuine. Find reviews on places such as user review sites, the Better Business Bureau, and other reliable websites.
A merchant cash advance can often have a high interest rate. Comparing the rates of different companies can help you to narrow down your list even more. However, you don't have to necessarily eliminate all the merchant cash advance companies with higher rates. Take the time to read through their policies as well, as this can give you more insight into how the particular company operates. You may find the policies of one company more favorable than the policies of another.
Even if you don't have any questions, call customer support and other contacts at the merchant advance companies. You want to get a feel for how friendly, courteous and professional they sound. If you don't feel like you can have a good relationship with a particular company based on how they treat you or answer your questions, then you can eliminate that company from the list.
Ask to see a copy of the contract you will be required to sign.
You will want to see how qualified the company is by checking industry association memberships, years of experience and references.
Following the above tips and tricks when you do your research should put you on the right path to finding the best merchant cash advance company for your business.