Recent statistics conquer that most financing deals considered a temporary solution to get micro- businesses through cash flow crises often come with sky-high interest rates and related fees.
A few years ago, retailers submitted Merchant Cash Advance applications would enjoy a lump sum in trade for a percentage of their upcoming credit/debit card sales. But experts say these days paying MCAs back is as painful as going through per-day or per-week debits from their bank accounts.
While it would be iniquitous to fail to acknowledge how much cash advances have held down the fort for business, more so the “high-risk”, it is advisable to weigh their risks and costs of the deal your financial provider offers you.
You want to use short-term funding selectively because they have annual interest rates that range from 60% to triple digits, to cover for their short-term method of the financing. Merchant Cash Advances, …