Avoiding critical business cash advance and credit card processing mistakes is an important but potentially difficult requirement in obtaining appropriate business finance terms. Commercial borrowers should expect to secure improved working capital management terms and avoid potentially devastating business financing problems by taking some extra time and caution.
In our experience, the potential difficulties involving factors discussed below are more serious and common than most business owners expect. While we will not be addressing all possible merchant cash advance and working capital loan mistakes in this article, we will include several of the most severe issues to anticipate.
Misrepresentations and Unwillingness to Explain Working Capital Details -
In my experience, most business cash advance and working capital loan agents are more interested in earning revenues from credit card processing than anything else. This results in rampant misrepresentations about what they can do for a business owner in their attempt to secure business finance help through credit card financing. When this occurs, the costs and time required to finalize business financing are typically understated intentionally in order to rush the process of switching processing providers to those represented by the agent.
It should come as no surprise that such advisors are often motivated by their own financial interests more than those of business owners they are representing. In such cases, they are unlikely to provide either detailed information or prudent advice for a commercial borrower. Based on our observations over many years, a suggested way to avoid this potential trap is to utilize an advisor who is experienced in all aspects of business financing and not simply in credit card processing or business cash advance services.
Working with a business finance expert who routinely avoids such inappropriate conflicts of interest should be the preferred approach whenever possible. For example, if an individual is advising a business owner about business cash advance services and will not profit in any way from the credit card processing requirements, then that individual is likely to provide a more unbiased recommendation.
Ignoring Common Credit Card Factoring and Business Financing Problems -
Although business cash advance and credit card processing programs are needed by many businesses, commercial borrowers should not overlook the numerous problems that can regularly occur with these services. We have prepared several reports that describe in detail key problems for many merchant cash advance services.
The main point we want to emphasize is that it is not wise or necessary to accept any of these common difficulties. The recommended strategy for avoiding this particular mistake is to work with an experienced advisor who is knowledgeable and candid about how to approach these critical business finance problems.
Inexperienced Business Finance and Credit Card Processing Advisors -
Most lenders and brokers which previously provided residential mortgages have been forced to look for alternate sources of revenue. Business cash advance and credit card processing programs have recently become more popular with these brokers and lenders.
The immediate impact is a sudden influx of inexperienced residential mortgage brokers and lenders attempting to provide working capital management advice for credit card processing and business cash advance services. Business financing is much more complicated than residential financing, and we have prepared numerous reports to support this viewpoint. For most business owners, the use of inexperienced business finance advisors will be a mistake of potentially serious proportions. Conversely a prudent strategy for avoiding this mistake is to eliminate advisors and lenders without significant long-term business financing success.
Solutions and Strategies for Avoiding Credit Card Processing and Business Cash Advance Mistakes -
Business owners should look for advisors and resources which will provide relevant strategies and solutions for a business owner to acquire an adequate understanding of complex business cash advance and credit card processing issues. Prior to beginning a working capital loan process, business owners should have a thorough discussion with a business financing expert. These efforts will be worthwhile since the potential business finance mistakes described above can be overcome successfully.