Are all Credit Card Advances Created Equal?

First off, there are two types of credit card advances; personal and business. This article focuses on the business credit card advance.

Another name for this type of funding is a merchant cash advance. For those who don’t know; it is a business loan alternative that offer financing for business owners who are having difficulty getting approved by the bank.

Since its inception about 10 years ago; the business has grown tremendously. And like most industries; it has had its share of growing pains.

Initially; there were only a handful of providers offering this type of service. As the industry grew, many others joined in. The problem is that some of these providers were less than desirable. When the housing bubble popped, many mortgage providers found themselves out of a job and wanted to join in as well. The merchant cash advance industry became crowded with agents and providers. Some of these providers became quickly disillusioned and quit the business, leaving their customers in a lurch or simply passing their account to someone else.

Things have settled down considerably I recent months. Most of these new providers have gone on to other things, leaving only the strongest and most reputable.

Because the industry is self regulated and is still relatively small, word gets out very quickly if an agent or provider is doing anything shady or disreputable. Nobody will work with them and they will be unable to do business and go away.

So want makes one cash advance provider better than another?

All providers do essentially the same thing; they offer cash advances to businesses. What set’s one provider apart from another is customer service. Customer service in the cash advance industry consists of these things;

• The ability to get the best rates
• Working closely with business owners to establish the appropriate advance amount
• Being available for the business owner from start to finish
• Being completely upfront with all the details regarding the credit card advance
• Fast, courteous service

Another thing that business owners should know is that there are basically two types of providers.

1. A direct funder: They own the money and are directly responsible for approving your funding request.
2. An agent: they submit your information to several direct funders and get a referral fee.
3. You’ve probably guessed that the direct funder is probably the better choice. Because they own the money and make the final decision; they can probably get your business the best rates. And the fact that they don’t have to pay a referral fee has an impact on the cost as well. However this is not always true. Sometimes an agent has worked out special rates to insure your business.

How can I tell if they are a direct funder?

• One way to find to is to ask. However many agents will often refer to themselves as a direct funder.
• Pay attention to the application forms and other paperwork. If the company name on the form differs from the agents; chances are you are dealing with an agent.

How can I tell if the company I am dealing with is reputable or not?

As I have stated earlier in this article; the credit card advance industry is rigorously self regulated. Probably the worst that could happen is that you get less than good service. After all; you are the one holding their money. If you would like to learn a little more about a provider, simply look them up on the Better Business Bureau’s website. Another place to look is ripoffrepot. Chances are; if they’ve done something bad, they will know about it.

A credit card advance is a great opportunity for many small businesses to get additional funding; particularly if they’ve had trouble getting funding in the past. There are many advantages to this business loan alternative.

I invite you to learn more about how a merchant loan can help your business by click the link below. There is so much to gain and very little to lose from educating yourself.

Learn how a Credit Card Advance can help your business
Learn how a Credit Card Advance can help your business.