American Receivable
DFW: (972) 404-4726 | Austin: (512) 339-5112
Online money lender

Beware of Online Money Lenders

Today, business owners have a wide range of financing options, including online business lenders. However, not all online lenders are created equal, making it challenging to differentiate between the good and the not-so-good ones.  Merchant Cash Advance lenders have earned the reputation of not disclosing terms and hiding their costs.

Online business lenders excel at providing fast and easy funding. They often promise same-day funding, but remember the saying, “if it seems too good to be true, it probably is.”

While finding capital online is convenient, understanding the true costs of the loan can be difficult. Confusing loan documentation, hidden fees, daily draws from your business account, and a lack of transparency can trap you in a cycle of borrowing more money just to make payments on a previous Merchant Cash Advance.

Unfortunately, we’ve heard many stories of business owners falling victim to these online lenders. Stacked loans and unknowingly pledging personal assets as guarantees have led businesses into ruin. Annual percentage rates of 50% and higher have pushed many businesses into a downward spiral. To combat these usurious and predatory practices, the OCC and State Attorney Generals are investigating these companies.

If you’re considering an online business lender, ask yourself the following questions:

  • Are the loan terms and conditions clear?
  • Is the interest rate clearly stated?
  • What is the payment schedule?
  • Will payments be automatically deducted from your bank account?
  • Is there a grace period?
  • What are the penalties and interest for missed or late payments?
  • Are there servicing fees or other miscellaneous fees?
  • Will the lender file a lien against your business?
  • Are you personally responsible for the principal and accelerated interest?

At American Receivable, we understand the importance of fast funding for business owners. Emergencies arise, and opportunities demand additional capital. We often fund clients within 24 hours, but we prioritize clarity and transparency. We want our clients to have full disclosure about transactions, pledged collateral, and personal commitments before signing any documents.

We believe that the best business relationships start with full disclosure. If you’re considering an online business lender to improve your cash flow, we encourage you to contact us at 1-800-297-6652 to learn more about our invoice factoring solutions.

Jack Stieber         972-404-4726

Sarah Fisher        972-404-4726

Brad Gurney       800-297-6652

Dakota Stieber   512-339-5112  

Julie Adams        800-297-6652

Voted best Invoice Factoring Company for SMBs for 2023 by


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