This time of year, many businesses owners are facing a cash shortfall. The combination of year end expenses, holiday bonuses and customers delaying payments can cause a business owner to panic. This is when all the spam emails and pop-up ads can lure a business owner to a Merchant Cash Advance lender.
Don’t Fall into the Trap
The ads show a fast and easy way to get financing for your business. The ad leads you to their website where with a short application and several months of bank statements you can find out if you qualify for enough money to get you out of your jam. All this is presented with big graphics that are designed to get you to take their money now!
With a few quick clicks you can get the cash you need to get you through a short-term need. And you’ve just fallen into the MCA trap that business owners never get out of. Here are just a few of the dangers of taking out an MCA loan:
- Outrageous interest rates, from 40% to 350%!
- High fees, that are only disclosed after closing.
- Daily withdrawals from your bank account
- No grace period
- You have signed an Agreed Upon Judgement allowing the MCA to take your personal property
- You cannot prepay the loan without a severe penalty
Often, a borrower is forced to take out a new MCA loan to pay off an MCA loan that they have defaulted on. The industry calls this stacking. The business owner might as well call it bankruptcy. That’s the only way to get out of multiple MCA loans.
Work with a Top Rated Factoring Company
American Receivable is a 9 year in a row Top Rated Factoring Company. By taking advantage of our streamlined application business owners can convert their invoices into CASH in only 2-3 days. Our transparent pricing means you never have any surprises about what factoring will cost you. American Receivable has a flexible factoring program that keeps you in control of how much you factor. Stay out of the trap and let American Receivable solve your cash flow problems.