Alternative Business Funding

5 Signs Of A Bad Merchant Cash Advance Deal

The most common way to get business funding fast is to get a cash advance, and there are plenty of lenders out there! Though others may try to tell you otherwise, the truth is that not all merchant cash advance companies are the same. Some are better than others, and some will offer you better deals than others. While you might be inclined to take any merchant cash advance that you’re offered, the truth is that you should shop around and avoid bad companies. A bad company can turn a good advance idea into a nightmare. Here are five warning signs you should watch out for when getting a cash advance. 

  1. The sales staff is overly aggressive with you. If you are on the phone with them, and they seem like they are absolutely dead-set on selling you an advance, you might want to back off and re-evaluate for a bit. Though it’s true that all companies will want to do business with you, ones that are extremely aggressive may have other issues that may be sparking that aggression.
  2. You can’t help but notice that the people at the merchant cash advance company sound unprofessional. A lack of professionalism is a bad red flag in any financial service field. This is not an industry where anyone can afford to deal with unprofessional groups, since it can mean major losses on both ends. If you notice unprofessional behavior in any way, shape, or form, it may be time to look elsewhere.
  3. The rates are sky high. It’s a buyer’s/borrower’s market in the merchant cash advance world. You should never settle for a high interest rate unless you’re a considered to be a high risk industry by everyone who you’ve applied with. (Note: high risk standards also vary greatly from company to company, so you definitely should shop around if you’ve been declared a high-risk person.)
  4. The company in question has terrible reviews, or even had lawsuits involved. It takes a lot to actually have a company get sued over merchant cash advances, so if you see that it happened, that’s a pretty serious sign of misconduct. Low ratings may also suggest that the company in question may simply be a pain to deal with, or just too finicky with advances. Either way, you deserve to work with the best.
  5. There seems to be more demands and rules put in place for the company’s cash advances than the norm. In all reality, a cash advance is not a loan, which means that they cannot tell you what to do with that cash. If you see a cash advance company restricting your spending rights, asking you to put a down payment on the advance, or requiring you to do other similar “hoop-jumping” acts, then you may actually be dealing with a fraudulent company.

Realistically, there aren’t too many predatory in nature, but it’s still wise to keep an eye out. In fact, the truth is that most companies out there will offer reasonable rates and good service. However, there’s no reason for you to do business with any company other than the best. After all, that’s what Capital Key is here for!

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About Capital Key

Capitalkey will help you take your business to the next level! Our expertise is business funding and merchant processing. We offer great options to businesses that need a quick and easy cash infusion (even if you may have got turned down previously!) We also offer some of the lowest rates in the merchant processing industry! If you are currently processing with another company we highly recommend taking advantage of our free statement audit, which will allow us to identify if you are getting charged higher rates and/or fees unnecessarily. Typically we can help our clients reduce their processing costs by 20-30% on average!

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