Choosing a Provider

It can be difficult to evaluate all options and make a sound decision when your business needs cash immediately, but taking the time to choose the right business cash advance provider is well worth it. 
Many different companies offer cash advance and factoring loans.  Some are large financial services and lending institutions, others are small businesses that specialize in this type of service. A company you already work with, such as your current credit card processor or bank may offer the service you need.  If your business is credible, you may be able to negotiate a better rate because these institutions are familiar with your business history.

Evaluating several providers is a good way to determine if you are getting the best terms available for your business. 

Some important qualities to look for in a provider:

  • Accessibility.  You will need to communicate frequently during the application process and possibly throughout the repayment process.
  • Knowledge.  The provider should be able to explain the application and repayment process thoroughly and answer any questions you may have.
  • Reputation.  You should choose a merchant cash advance company with a solid and established history in providing financial services to businesses similar to yours (similar in size, revenue, amount of advance, etc.).
  • Honesty.  A good provider should be able to evaluate the financial state of your business and make a recommendation as to which type of financing would be best for you.  No provider should try to steer you toward an advance amount that is too high, or towards an agreement with onerous repayment terms. 

If a provider tries to charge fees for different services beyond the factor rate or advance fee, such as application or administration fees, be wary.  Processing and administrative fees are not generally assessed by reputable providers.  No provider should require that you switch to their company for all of your merchant services such as credit card processing.  Remember, always compare rates and price quotes from several providers to make sure you are getting the best deal. 

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