Contact Sales (855) 615-7481

Get FREE Quote

Why You Probably Shouldn’t Get a Merchant Cash Advance

When running a business, it’s easy to deal with serious financial problems in the long haul. This is common whether an entrepreneur runs a restaurant or an e-commerce business. While true, when getting a merchant cash advance, one can receive funds to run their corporation. With this in mind, here are four reasons why you probably shouldn’t get a merchant cash advance.

Never know the future: Whether one runs an established company or a new one, an entrepreneur really doesn’t know what the future holds. Think about it, the day-to-day operations of a corporation are not easy to predict, and plenty of people have gotten merchant cash advances and ended up dealing with problems. Instead of relying on credit card processing receipts in the future, a company owner should plan for the future and spend his or her money wisely. Then, it’s not necessary for one to borrow money from their merchant accounts.

Tied to the account: Without a doubt, when borrowing money related to the merchant accounts, one will end up tying their business to the loan. Then, when issues occur, the company owner will end up dealing with a costly problem. Instead, a small business owner should borrow money from other sources. Simply put, when borrowing money, don’t link it to a merchant account. Instead, when borrowing money, one needs to at other sources.

High borrowing rate: When using a merchant cash advance, one can pay pretty high rates. On the other hand, an established business owner can walk into a bank and borrow money at a low rate. This is especially true when the owner of a company has an established credit line. Otherwise, when using a merchant cash advance, one will overpay. Then, when trying to repay the loan, one will end up with serious financial problems in the long run.

Fix underlying problems: Finally, when dealing with a cash flow or money problems, one needs to fix the issue. This is true whether a person runs a business or deals with other financial issues. Think about it, when borrowing money for the short-term, one is trying to meet obligations they can’t truly afford. Instead, an entrepreneur needs to look at his or her business model and make changes.

When using money from credit card processing, one is selling out their future. Instead, a company owner must come up with a long-term viable plan to borrow cash.

GET FREE QUOTE TODAY AND START SAVING

Type Of Account

Articles

What Exactly is a Contactless Payment?

The modern credit card industry and credit card processing began in the 1950s, and the first credit cards...

How Smart Chips Will Make Electronic Transactions More Secure

For the typical business person who runs across fraudulent transactions involving credit cards, credit card processing with smart...

What To Do With All of Your Company’s Receipts

As the electronic age has started to take over more businesses, much of the information that used to...

© 2015 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA
American Express® may require separate approval.

*Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s). Further terms and conditions may apply.

**Certain restrictions may apply. Promotional offers brought to you by
CreditCardProcessing.com. Call (855) 615-7481 for details.