What Every Business Owner Should Know Before Taking a Merchant Cash Advance

E.J. Simonsen | Apr 12, 2022

If your business is contemplating taking a merchant cash advance, tread carefully. Maybe this is the product for you, but you need to understand what you're signing up for. 

Is a Merchant Cash Advance Similar to a Traditional Loan? 

This is not a traditional loan. It doesn't work like a normal loan. If you fail to pay, the collection process is not like a normal loan. You are offering as collateral (selling) your future income, whether you actually collect it or not.

Ask an Attorney to Review the Contract Before Taking a Merchant Cash Advance

So, before signing up for a merchant cash advance, take time to read the contract. One of the things that are in most of those contracts is that you acknowledge that you had sufficient time and that you could take it to an attorney.

 

If your business doesn't have an attorney and needs someone to review it, we offer to review loan contracts, merchant cash advance, or other similar products and documents at no charge. If you have questions, contact our office. We'd love to help you.

 

The material and information contained on this website is for general information purposes only. You should speak with an experienced attorney in your area before making any legal decisions. 


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