3 Major Problems With Having To Pay Interest

Synergy Merchants provides small to medium sized business owners in Canada with merchant cash advances to help them grow their businesses. Unlike loans, there are no interest rates that accrue on the money they receive. Let it be made clear that we are not saying the money is free. There is a one-time fee attached to the cash advance given, and it is paid back through a small percentage of future credit card and debit card sales.

Our clients have enjoyed the benefits of such a funding alternative because it alleviates the many problems that arise with having to pay interest. Firstly, it allows them to know exactly how much their cash advances will cost them. There is no guessing. One of our licensed funding specialists provides a free, no obligation quote after an assessment of a company’s credit card and debit card sales.

This quote includes the exact one-time fee amount. That way, our clients know that no matter how long it takes for them to pay their cash advances back, they will not be paying an amount any higher than that fee. Again, interest does not accrue over time, so there is no need for worry about being able to afford the repayment. At Synergy Merchants, we only get paid when our customers get paid.

Interest, of course, is a different animal. A person can know his/her interest rate, but not necessarily understand how that translates into dollars and cents. There are a lot of factors that go into determining just how much interest will be charged over time. The amount of the loan, the interest rate, the minimum monthly payments and the timeliness of the payments are all factors in determining the grand total charge.

Wouldn’t it be easy if this guessing game could be avoided? Here are three major problems with having to pay interest:

1. You don’t know how much you’ll end up paying in full. When you take out a loan and have an interest rate, the amount of interest you pay is determined by the average daily balance of the money that you owe. But this consistently changes depending on the payments you put towards it. Figuring out the math isn’t easy. You only ever really know how much the loan costs you once it is paid off in full. At that point, you’ll know the total amount of interest you had to pay.

2. Your interest rate can fluctuate. When people secure loans, they generally attempt to get the lowest interest rates possible. Obviously, this helps them to have smaller interest charges and easier times paying the loans back. However, if payments come in late, payees stand the risk of having their interest rates increase. This not only heightens the burden that comes with owing money, but damages one’s credit score as well.

3. There is always a deadline for payment. Loans insist upon minimum payments by particular dates. That means that no matter how good or bad your business is doing, you owe a specific amount of money each month on a specific day. There is no leeway when it comes to making payments. As mentioned earlier, if your payment is received late – or not at all – your credit rating takes a major hit and there are usually penalties to pay.

Let’s take care of that whole paying interest problem, shall we? You can secure money for your business in a much quicker, easier and pain-free way. For more information about our merchant cash advance program or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026 or email us at info@synergymerchants.com.