Double dipping occurs when a business renews a merchant cash advance while still owing on the original advance. Some less reputable MCA providers will charge fees on the entire renewal or transaction amount, even if you’re just bringing the total back to the original advance amount. This means you may be charged fees on funding you have already been assessed fees on. Whenever you are renewing a cash advance, make sure your provider thoroughly breaks down the terms of your agreement. Practices like this have given the merchant cash advance industry a bad name.
Like any other business partnership, you need to align yourself with an honest and reputable company when seeking business capital. Make sure you read and understand any and all contracts you sign and account for every dollar being repaid. Double-dipping can cost a small business owner tens of thousands of dollars. Since you’re looking for funding in the first place, this is a hit few owners can withstand. Here’s what to look for in a business capital provider.
Transparency And Honesty
You want a company that is ready and willing to explain all of the details of your funding arrangement. If there is hesitation or their answers are unclear, it may be time to look elsewhere. A reputable provider will be upfront about all costs involved and more than willing to spend the time to ensure you understand your obligations. Double-dipping and other predatory offenses are all too common in the cash advance world. Do your homework, and don’t be afraid to shop around.
Longevity And Experience
When looking for a business capital provider, the first thing to consider is the amount of experience they have. A long track record of being a trustworthy company will give you the comfort you need to know you’re not dealing with a fly-by-night business. You’ll want to review your potential providers using reputable websites. Consider how long they have been in business and who their testimonials are coming from. If a provider has done business with other local merchants, it may be good to reach out to those businesses to learn about their experience with the company.
Continued Support
If you are going to get a merchant cash advance, you want to make sure that the company you will be working with has a good support system; one that will ensure your success and that will answer your questions. It’s often helpful if you have your own agent that works with you through the entire experience. And, you want to steer clear of companies that have outsourced support since that could lead to complications with your advance and the communication lines you should have with your provider.
When you choose Quikstone Capital for your business cash advance, you get a silent funding partner that cares about your success. We’ve been helping merchants for 17 years! We’re here to help you find the right solution to help your business profit and thrive.
