Acquiring Funding

Acquiring merchant capital from a funding provider, also called a “funder”, can be simple, and there are many providers of merchant capital.
However, funding providers, have different programs, all of which a merchant may or may not qualify for, or may or may not want the use.
There are some pitfalls and issues, that a merchant looking for funding should be aware of.

First, look for a company that will issue more money, or a second advance, when partially paid back, without paying off the first, and recharging for the whole amount again.

Second, the agent contacting you, is getting paid by the funding provider,
once the merchant receives their funds or the working capital , so any agent fee being charged by the agent, is above and beyond, anything necessary to get funding, and should be looked at, as an excessive charge.
The merchant should not authorized, extra fees to the agent, via ACH or what other mean may be used!  The merchant is paying for the funding through the fee charged by the funding provider. There are agents and companies that don’t charge excessive fees, that take advantage of unsuspecting merchants.

Third, if the company acquiring the funding for the merchant, claims they are the funding provider, and the paperwork you are required to sign, has the name of some other entity or party, this should be questioned.
You need to know who you are doing business with. If a company is a third party, and the funding is coming from someone else, the third party company is being paid by the company actually doing the funding, and you should not authorize any fee above and beyond the cost of the money that you agree to, in the contract that the “Funding Provider” that is named in the contract is charging.

Don’t be mislead!

Your cost of the money, are the fees that is disclosed in the agreement, with the entity that is actually doing the funding, and who the merchant has the agreement with, not the agent or agents company.

If the agent offering to acquire merchant funding, does require a fee, it is recommended that you connect with MerchantFinanceConnection.com, as we can direct you to a funding provider, where the funding, can be acquired without the extra fee that many agents and companies charge.

If the company that the agent is sending you to, to get funding, is charging, above the cost of the money funded, a fee other than simple account set up fees, ranging a few hundred dollars, or less, you are with the wrong company. Move on and find a company that will not charge these excessive fees, as they are already charging you a fee for the monies advanced, and anything above or beyond that should be considered out of line!

One Response to Acquiring Funding

  1. Tajuana says:

    Your post, Acquiring Funding, is really well written and insightful. Glad I found your website, warm regards!

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