Inc.com Really Misses the Point on Merchant Cash Advances

Two writers from Inc.com riff on the concept of the merchant cash advance. They cite a few examples of extreme cases of servicer abuse and some disproportionately high interest rates and fees. But what they fail to grasp is that the MCA zone works like any other area of business financing: there’s both the high and low roads

What’s Written in Inc

Inc, a top-tier online small business and entrepreneurial resource, uses its presence to turn readers on to promising new business avenues. That’s why it was surprising to read two of their readers were particularly hard on merchant cash advance route as an alternate for acquiring business funding. They were right on a couple of things. They describe the MCA industry as ‘a fast-growing and risky new product for businesses’. Fast-growing, no doubt. And it can be risky if you don’t do your homework or show restraint.


A Right Way and a Wrong Way to Do Business

Charging blindly into any financing arrangement is dangerous. Knowing APRs and payment details are critical in picking and choosing a business funding source. Same goes with a merchant cash advance. You should be comparing MCAs using their literature and other online resources. The quality organizations will present terms and conditions in an easy-to-read format. They’ll answer all of your questions plainly. And, just like any other small business funding source, there are good ones like that out there.