In yesterday’s blog, we revisited the concept of the merchant cash advance and the skepticism that it can receive from Canadian business owners. It is not uncommon for people to scoff at or dismiss something that they are unfamiliar with. So, naturally, we would like to end off the week by making you a bit more familiar with our product.
One of the things that make a potential client most skeptical about our program is the fact that we charge no interest rate. When first hearing of this, clients often jump to the assumption that we are insinuating that we provide money for free! Wouldn’t that be wonderful? Of course, we do charge our clients a fee for the cash advance, but this marks one of the biggest differences between our program and a traditional bank loan.
With interest rates, a loan accrues charges over time. As long a borrower has an outstanding balance, he or she will be charged for it. The longer one borrows the money, the more that person will to pay for it. With the one time fee that we charge, there is never any need for worry about an accruing interest rate.
Instead, our clients are made fully aware of exactly what the cost of the cash advance will be before they even agree to receive the money. Regardless of how long it takes a client to pay back the cash advance, he or she knows that there will be no additional charges. As we mentioned yesterday as well, there are no late fees either.
This brings us back to what we like to refer to as “the best part about our program”. Banks charge interest and Synergy charges a one-time fee, so in both instances of receiving money there is an obvious cost. The biggest benefit to working with our merchant cash advance program, however, is the fact that there is no fixed repayment schedule.
Yesterday, we wrote about how the “withholding percentage” allows for the payback process to be effortless. As long as a merchant is making sales and processing Visa, MasterCard and Interac transactions, they are automatically making payments towards the cash advance.
None of our clients ever need to be concerned about the length of time it takes to pay the advance back. Worry about late fees, penalties or a negative impact on their credit scores is also out the window. If you haven’t yet gotten yourself a free quote for a merchant cash advance, what are you waiting for?