Few things in life seem more stressful than an unexpected financial emergency. Unfortunately, almost everyone faces financial difficulties from time to time, and there are few options for quick cash when you need it most. You may consider borrowing from friends or family members, but sometimes, that's just not an option. You may also consider a traditional loan from a bank, but approval can take days (or even weeks), and the credit requirements can be pretty strict. That's why so many small business owners choose a merchant cash advance.
In short, a merchant cash advance functions much like a loan with a few small distinctions. Many business owners choose this type of loan because they need quick cash and high approval odds. However, choosing the right merchant cash advance company is important because some companies are more reputable than others, and you may have several options from which to choose. With a little time and effort, you can find the perfect merchant cash advance company for your situation.
Research is absolutely vital when you're trying to find a great company to work with - and that's not just true for loans. You can use the Internet to find reputable, trusted merchant loan advance companies. Look for information on well-known, reliable sites like the Better Business Bureau and Consumer Affairs. You can also poll your friends, family and neighbors on social media like Facebook or Twitter. Word of mouth is one of the best ways to find a great company to work with.
Once you've compiled a list of established companies, it's time to search for reviews. You'll find reviews all over the Internet; just use Google or another search engine and use the name of the business and 'reviews' as the keywords. One or two negative reviews can be expected for any company, but a good merchant cash advance company should have mostly positive reviews from satisfied customers. Again, you can refer to reviews from people you know and trust, too.
What They Offer versus Your Needs
Once you've narrowed your list down to a few reputable companies with the best reviews, it's time to compare what they offer to what you need. Loan terms vary from one company to the next, so you'll want to compare the following:
Maximum and minimum loan approval amount: The loan you require should ideally fall somewhere within the range the company offers. If the maximum loan amount is less than the loan you need, you may need to find another company with a higher limit.
- Interest rate: You can expect higher interest rates with merchant cash advance companies, but you should always compare to ensure you're getting the best rate possible.
- Repayment term: The company should have repayment terms that work for your business.
- Credit requirements: Most companies give a basic overview of their credit requirements. Look elsewhere if you don't have everything they need for approval.
- Transfer method: Most companies will initiate a bank transfer, but not all do so be sure to check.
- Processing time: When you need money quickly, total processing time can make all the difference.
Despite what you may have heard, most merchant cash advance companies are honest businesses with great reputations; the less desirable companies are few and far between. Still, you should do your research, look at reviews and compare your options to find the best match for your situation.