Merchant Cash Advance...critical things you need to know!

Ok, so you are past the stage of finding out how a merchant cash advance works and into the stage of finding a place to get one. There are a lot of providers to choose from and some things you need to be aware of before diving in.

Get multiple quotes
This seems obvious but essential. This is essential because rates and terms vary amongst the cash advance providers. There are probably twenty different criteria to consider when looking at different business cash advance providers. Some have rates as low as 1.18 but require better credit, while others have rates of 1.41 but take someone with a 525 credit score. Most require you to change credit card processors while others don’t. The problem with trying to get multiple quotes is typically you only get one from each funding company. Some merchant cash advance companies represent multiple funding companies. Going to a company like that allows you to provide information once and get as many as five quotes with one click. Hopefully these quotes are assembled side by side so you can easily see the different requirements and rates of the different companies. Some companies will even offer you an instant quote. Fill out your information, press submit, and voila! Five quotes.

Warning! If someone offers you a rate that is considerably higher than others, ask why.
Sometimes the higher rate is justified, sometimes not. Companies get paid a percentage of the funding amount. That is not necessarily a bad thing because they have a vested interest in getting you the money that you need. The bad thing is they also get paid more if the factor is higher. Kind of like the finance guy at the car dealership. The question here is, if he quotes you 1.41, could you have qualified for 1.21?

What kind of deal can I expect?
Will a little advance knowledge and some due diligence, you will make yourself aware of what is possible. If you have pretty good credit, above 625, you can expect a better deal than the person with a 525 and for good reason. The company is trying to determine what the likelihood of the advance being repaid in full. If you are married to your processor and don’t want to change, there are options available to you where you don’t have to change.
So if you are in need of money then a merchant cash advance can be a good option if you have some advance knowledge of what is available. Use this information and don’t be afraid to ask a lot of questions.