Most of us need to borrow money to fuel our enterprises, but taking on the wrong type of debt is a sure-fire way to destroy your business. SBA loans, credit union financing, even a home equity line of credit can be good ways to borrow what you need, but there is one type of financing you should avoid at all costs. Merchant Cash Advance (MCA) companies offer quick fixes, cash on-demand, “easy” no credit check lending. Sounds good, right? Wrong. MCA is a wicked trap, not a solution.
These greedy vultures charge usury interest rates (60% plus is not uncommon) and suck money out of your bank account every day of the week. They say they want to help you by providing cash when you need it the most. But that’s a lie. Their real goal is to trap you in a vicious cycle – an endless nightmare of taking out more MCA debt to pay off existing MCA debt. Sooner rather than later, you find yourself forking over all of your profits to these shysters.
Are you in over your head with MCA lenders? Do you have two, three or even four open positions with these villains? If so, reach out to a credible financial counselor. There are legit programs designed to get you out of the MCA trap and restore your financial health. You don’t have to be the proverbial hamster running on the wheel, spinning round and round and never getting anywhere but further in debt. Stop flailing in financial quicksand; get help.