As a small business owner, you’ve likely been faced with the challenge of finding a financing lender to assist you in conducting daily operations in satisfying customer needs. There are a few options out there, so you can choose from banks or private lenders to help you finance your company. However, what exactly should you be looking for? What should be your priority when settling on direct lenders that will help your business grow? These are just some of the reasons that an independent sales organization (ISO) or merchant cash advance (MCA) may be an option.
No matter which ISO or MCA you choose, you want to make sure that the specific needs of your company are being met. Here are a few points to consider that will make the process a little easier.
One of the first things you’ll need to do is research the direct lenders. Look for reviews for the MCA lender you’re considering, and get feedback from other business owners or your financial advisor. Checking the MCA or ISO’s review on Google can help you decide if you want to do business with the organization.
It’s also best to compare companies. Get information on the sponsoring banks that are connected to ISOs that you admire. Make sure you get a company history on a MCA that you may want to do business with. Don’t simply look at one lender. Be sure that you are familiar with the length of the terms. Compare rates so that you’re not overpaying when it’s time to repay the cash advance from your credit card purchases. In many cases, a MCA company that has been in business for at least a decade is best. This lets you know that the organization has years of experience and is trusted by other businesses.
Learn the track record of the MCA and/or ISO so you can decide whether you want to be affiliated with the company. Find out if these direct lenders are part of financial organizations that can specifically assist you in getting your business out of debt. If the companies have been nationally recognized and have recently received awards or recognition, this is usually a good sign.
Always choose an ISO or MCA that can meet your needs.
It may be ideal to look at a variety of loans before you settle on the one that works for you. For a MCA, you should make sure that the interest rate isn’t too high. With a MCA, you won’t have to put up any collateral, but securing the cash advance can be expensive, and you want to make sure it will be worth your while financially. If you’re working with an ISO to meet your business needs, make sure that the sponsoring bank is legitimate and backed by Visa or MasterCard.
Finally, make sure you’re working with direct lenders that offer great customer service. You should never feel like you’re asking too many questions are not being heard. The loan officer working with you should be friendly and knowledgeable, and you should receive an honest assessment of your choices before signing any paperwork.