Have you heard about payday loans? Chances are good you’ve heard nothing good about them. They trap customers in an endless debt cycle. You wouldn’t dare, right?
Tag Archives: merchant cash advance
Have you heard of payday loans? You’d never consider such an option because it’d drain your resources, right? Merchant cash advance and business cash advances are like payday loans except they target businesses.
Thousands and thousands of business owners are stuck with MCA. To attract B2B companies, some MCA providers call it Business Cash Advance. An MCA may sound like a great idea, but it isn’t when you look at the full picture of how it works.
On the TV show “Shark Tank,” business owners typically ask for funding in exchange for equity. When a product catches the eye of Kevin “Mr. Wonderful” O’Leary, he likes to counter with a complicated deal consisting of royalties and fees. Sometimes royalty in perpetuity comes attached to the offer. Smarter entrepreneurs turn him down flat because it takes away money they could reinvest in the business.