Merchant Cash Advance – To Avoid Fraud

Merchant Cash Advance (MCA) are also called as Business Cash Advance offers you simple and quick way to receive finance for a small and medium-sized firms by selling certain part of your credit card sales proceeds. 

• Merchant Cash Advance in technical terms is a purchase of all your future revenues rather than just a simple loan.
• Merchant Cash Advance (MCA) is not bounded by any financial rules
• Merchant Cash Advance (MCA) are not regulated by any federal laws governing the lending industry as it falls beyond any jurisdiction.

Merchant Cash Advance (MCA) Industry has touched $10 billion mark. Looking at the trend and growth in this Industry many of unprincipled providers have started to enter this industry to enjoy the benefits and share of the profits.

Sustaining integrity of the industry is against any financial malpractices. Major Merchant Cash Advance (MCA) companies have come forward and have collectively formed an association called “North American Merchant Advance Associations (NAMAA)”. This is an effort to standardize the best industry practices so that Merchant Cash Advance (MCA) continues to grow and generate more profits without getting any disruptions on the same.

North American Merchant Advance Associations (NAMAA) – Has come up with some of the following suggestions which would help you to distinguish white hat suppliers from swindlers and also to maximize your profits from Merchant Cash Advance (MCA) Financing.

Terminology – Inappropriate 

Always, beware of the Merchant Cash Advance (MCA) providers who use the verbiage “loan” to refer to your funding deals or ask you for any collateral. 

Ensure you are aware and understand every part of your agreement and the implications.

Risk Management Processes

Always be cautious of the suppliers who are eager to approve the advance without even examining any required information such financial statements, tax returns or additional asset documentation to be approved for the advance to judge your business performance.
Tactics on Collection

Make sure you are aware of the interest rates before signing on any of the dotted line.

Retrieval Rates - Fixed

Always explore the terms and conditions of several Merchant Cash Advance (MCA) providers before finalizing your deal them. Ask for a sample copy of the agreement to examine it and get the most out of your Merchant Cash Advance (MCA).

On your leisure time from the day to day’s hectic schedule spend some time on learning and understanding about the industries best practices and the necessary standards before you select Merchant Cash Advance (MCA) supplier of your Choice.

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