Merchant Cash Advance Info

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April 21, 2014:
A recent episode of the Shark Tank suddenly created a new amount of interest in business cash advance service companies. Is this a good thing?

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The merchant cash advance field is highly competitive. They spend millions on marketing. Get a few bids and you might get better rates.

Which Companies Have The Best Rates

Merchant Cash AdvanceThe list of merchant cash advance companies below is for informational purposes only and does not count as any kind of endorsement or recommendation. Your own processor may have access to one or more of these companies.

In Alphabetical Order

1st Choice Advance

Advance Funds Network

Advance Me

AdvantEdge

American Finance Solutions

BankCard Central

BC Funding

Business Credit And Capital

Capital For Merchants

Fastpoint

H Capital

Merchant Cash and Capital

Merchant Resources International

Merchantcash.com

Merchants Capital Access

Nations Advance

On Deck

Paramount Merchant Funding

Rapid Capital Funding

Shield Funding Corp.

Sure Payment Solutions

Swift Financial Corp.

The usual caveats with cash advances apply here, and should not be missed: First, if you are already locked into a credit card processing contract you may need to go with the solution provided by your current processor, who may be pushing this solution just because you can't stop processing with them because it is part of the repayment contract. This means you could be overpaying for merchant services and have no way to shop around for lower rates or a better deal, so it may do you good to get great rates on processing before applying for any kind of business advances. The nature of these advances means that they may not follow the traditional rules related to business loans or bank lending, and this means that you might have less recourse when problems arise. Generally, MCA companies will (for legal purposes) avoid categorizing their services as "loans" and as such the money fronted to you could come with high repayment rates on the back end. As a consumer, you may want to do the math and see what the effective rate would be for repayment if you "pretended" you were getting a loan. Like Payday Loans, advances on credit card receipts can become habit forming. Also, you need to be very clear in documenting where the money goes, because you can't comingle it with your personal money. Therefore, just do what the people on food stamps do: use the advance money to pay for business related expenses as outlined by the terms of the agreement, and then use your leftover dough (that you would have spent on necessary stuff anyway) to get the frivilous things that probably got you into this mess in the first place.

Notes and Special Information

Special note: Don't go crazy borrowing money, as it still needs to be paid back and may be secured against your other assets, or you.