Loan Payoffs Merchant Cash Advance
This is a proliferation of online business lenders offering Merchant Cash Advance loans tied to credit card acceptance. The benefits of this type of loan are less paperwork and a quick funding time. For a business owner, fast money has a lot of appeal.
The dark side to these loans is their breathtaking high interest rates. Interest payments are front loaded, so that even if the loan is paid off early, the business has paid the interest for the entire loan term. Another negative is the very short repayment terms, with 6 months being common. Merchant Cash Advance lenders obtain authorization to charge the business account DAILY for payments. This aggressive repayment is a killer for most unsuspecting businesses.
What seems to happen to these high interest / short repayment loans is that they go into default, or given time, they are refinanced with other lenders that have more reasonable repayment terms. TABASFUNDING has done some refinancing of Merchant Cash Advance loans. We’d be glad to talk with you about your situation.