Finimpact

FAQs

Is a Merchant Cash Advance Helpful or Dangerous?

A merchant cash advance can be both helpful and dangerous, depending on the situation. If you’re able to pay back the advance with reasonable ease and the funds are used wisely, then a merchant cash advance can be a very helpful financial tool. However, if you can’t pay back the advance, your situation gets complicated fast. Ultimately, it’s important to do thorough research on various MCA companies and consider all options before taking out a merchant cash advance.

Should I Avoid Merchant Cash Advances?

It depends on your individual situation. Merchant cash advances can offer businesses fast access to cash, but they also typically come with fees. If you’re able to access other financing options with lower rates, it’s likely a better choice. However, if you need quick access to cash and have nowhere else to turn, merchant cash advances can be helpful.

When Should I Get a Lawyer to Help With my Merchant Cash Advance?

If you can, it’s always a good idea to consult with a lawyer before taking out a merchant cash advance. A lawyer can help you to understand the terms and conditions of the contract, and advise you on how to best protect your interests. They can also help you to negotiate better terms if necessary.

What Should I Do if I Get Sued For an Unpaid Merchant Cash Advance?

You should consult with a qualified attorney as soon as possible to discuss your rights and legal options. Depending on the situation, you may be able to negotiate a settlement or reach a compromise with the creditor. 

About the Author

Christopher Murray

Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

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