How to Vet a Merchant Cash Advance Provider

Advance providers say they're doing more to self-regulate, but a merchant's best protection is to understand the terms of the contract before signing up

If you're considering a merchant cash advance for your business, how can you evaluate the provider? Even the largest providers, who say cash advances have gotten a bad rap, concede that some companies or independent brokers have been too eager to sign up merchants who aren't a good fit for the product. Cash advances remain a niche product, but some analysts say the industry is growing by double digits and could reach $10 billion in advances. Business owners should understand the risks before signing up.

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