Tuesday, November 10, 2009

The Pitfalls of a Merchant Cash Advance.

Inc Magazine wrote an article a while back about some of the more negative aspects of the Merchant Cash Advance industry. Although it shows a very negative one-sided view of the industry, I still think it is important to share both sides of the issue.

The article points to a case where a merchant was mistreated by a merchant cash advance provider. I assure you that is the exception to the rule. Most providers are ethical business people who follow strict guidelines.

It just goes to show you how important it is to do some background checks of your own before handing over your sensitive financial information to them. You can do that at the Better Business Bureau's web site.

The article is here:

Thanks, But No Thanks

1 comment:

Carl Logan said...

It is always a wise move to verify the credibility of any creditors if you're planning on applying a loan.

Just like in a payday loan, it's quite common for an unscrupulous payday loan company to offer money to borrowers more than they needed. Let say, you requested a loan of $500, but they’re offering you $1000. You don’t need the extra cash, but an extra $500 does sound appealing. It’s never wise to borrow more than you need. Payday loans are already expensive because of their convenience. Adding on additional amounts can cost you more money, and it will be harder to repay.