Merchant cash advance (MCA) lenders in New York offer the opportunity for some businesses to meet their short-term capital needs without access to a bank or credit union. Factoring is another option, for businesses with significant invoices coming due. For a certain class of businesses a lack the collateral or credit to use conventional lending sources and not many outstanding invoices.
Merchant Cash Advance New York:
Unexpected business expenses are a fact of life in business. Sometimes an emergency arises and insurance can’t cover the lost expenses. When some New York businesses were crippled by Hurricane Sandy, insurance companies paid claims but some businesses needed to call on other resources to survive. A business with significant income from credit card receipts might be able to survive a post-disaster crisis by getting a cash advance. .
MCA lenders should be a source of emergency cash, for most businesses. Sometimes an opportunity arises and the business cannot act using money on hand. An advance against future credit card receipts might be a good way to raise the needed money, for some businesses.
Prospective borrowers should evaluate the true cost of an advance. All MCA lenders charge a premium in addition to taking a small percentage of credit card receipts. The total premium cost, added up over several months to over a year, could be considerable. Business owners need to know if the cost of money is reasonable, relative to the options.
A merchant cash advance in New York might be a better option that getting a loan or an extended line of credit. In a financial emergency seeking a cash advance is the right move, after screening a few potential lenders.
Many lenders specialize in serving select industries. The right lender for a given business will know the business processes that characterize the industry. In addition to industry knowledge, MCA lenders need to be screened for outstanding complaints and current licenses. Most established lenders will have good reputations and a good track record of serving their target market, so the risk of paying too much in premiums is probably more important than the risk of getting a bad or dishonest lender.
Finding a Lender:
A Web search will turn up lenders who are licensed in New York. If the Web site doesn’t list industries that lender serves, a quick call can help identify good lending options. As with any financial decision, some due diligence must be exercised before choosing a MCA lender.
An MCA company should have a Web site. A Web search for lenders that serve a specific area, and industries, should provide a few options. Lenders with physical locations in New York that are licensed to work in New York and have experience in the potential client’s industry are the better choice.
Using Advances as a Business Tool:
Cash advances are a financial tool like any other, and can be used in that spirit. Merchant cash advance firms in New York can help businesses meet short-term needs for cash, and can do so with minimal business risk if the borrower exercises care in seeking advances.