Choosing a business cash advance provider

Although the business cash advance is a relatively new product, a variety of businesses are already grabbing their share of the growing market.

Providers range from large merchant account vendors who offer cash advances as part of their services, to small, independent companies who focus exclusively on advances. Even traditional financial businesses like banks and leasing companies are getting involved by aligning with small providers to offer business cash advances to customers.

The background of the provider shouldn’t matter – quality is far more important. You want to work with a company that takes the time to understand your cash flow needs and determine rates that let you get the money you need without compromising your company’s stability.

What to look for
Any provider you work with should offer solid, reliable customer service before and after you agree to work together. You should be confident that your provider will be there when you need him most. For instance, if you face an unexpected business slump or accelerated expenses, your provider should work closely with you to come up with a solution that benefits both parties.

The provider should help you feel comfortable with the transaction. Taking a business cash advance means you’ll have to make sacrifices like switching merchant account providers and operating with a smaller cash flow. Your provider should help you understand that these temporary changes can benefit your company’s future.

Look for providers with significant financing experience. Since the business cash advance industry is fairly new, look for providers who have guided businesses through financial hardships in other ways. Research each provider’s background, how long they have offered business cash advances, and which companies they've worked with. You want to develop relationships with companies that plan to be around a long time and aren’t just jumping aboard the latest hot trend.

Quality providers will learn as much as possible about your business to find out how much money you need and if you can pay it back. Once they do, it’s also important they share any bad news immediately. If you only qualify for unfavorable payment terms, it’s better if they reject your request than gouge you with excessive rates.

Finally, take your time when selecting the right provider: it's an important decision that could impact your business’s long-term stability. You need to carefully compare price quotes from multiple providers and perform your due diligence on each candidate. You’ll find plenty of providers who are patient enough to wait for your decision – if one seems pushy or tries to strong-arm you into signing an agreement before you’re ready, walk away.