Earlier this week, we blogged about the concept of having a “fear” of the unknown. When we first speak to a Canadian business owner, he or she often shows skepticism about becoming involved in our merchant cash advance program. This is both normal and to be expected. And our licensed funding specialists love nothing more than speaking to these types of individuals.
One of the first things that makes our first-time clients skeptical is the idea that there is “no interest rate” with Synergy’s merchant cash advance program. With so much experience dealing with the banks, entrepreneurs put interest rates and borrowing money hand in hand.
A merchant cash advance is not borrowed money. As well, it’s not free money either! So in an attempt to eliminate skepticism, we ensure our clients that we are not at all trying to imply that our merchant cash advances are free. There is no interest rate, but we do charge a one time fee.
Many would-be clients then become skeptical when they are not immediately told what that one time fee is. Well, the truth is that the fee is different for every business owner. It is based primarily on the amount of Visa, MasterCard and Interac transactions a merchant does in an average month.
The fee is also determined by how much money the merchant wishes to receive as part of his or her cash advance. So to determine a price without discovering these factors would be impossible. Once that fee is figured out, however, many potential clients also become skeptical about how to pay the advance back.
To reiterate a previous point, there is no accruing interest rate because there is no fixed repayment schedule. We believe that this the best part about our program. When you’re late with a bank payment, you face consequences. Often, a late fee is induced and your interest rate may increase. Of course, this also affects your credit score.
With Synergy’s merchant cash advance program, all of those concerns are eliminated as with there being no schedule…there’s no such thing as being late. It doesn’t affect your credit score as a result. Back to paying back the advance…a payment is made each time a customer swipes his or her debit or credit card in your store.
A small percentage of each sale goes to towards repayment, so it doesn’t matter if it takes you two months or two years to pay back the advance. You will never have to worry about paying back a penny more than you originally agreed upon when you got your free quote. We hope this helps with some of your skepticism. For more information, give one of our funding specialists a call and get your free quote!