Merchant funding

[zpizzaman]

Has anyone ever used one of these merchant funding companies?
What they do is loan you cash, and take a percentage of your daily interac/credit card sales.
just wondering if anyone has any experience with these guys.

 

[RobT]

Don’t do it. You’ll bury yourself. The interest rates are ridiculous.

 

[roanoke_49]

No matter how good they make their offer sound, it’s not worth it. Their interest rates are exorbitant and there are fees of different sorts that they never tell you about. A company I used to work for was factoring invoices for awhile, which is the same principal, and it turns into a nightmare.

Unless you have a lot of spare time to devote to copying, verifying and monitoring the transactions, it’s a losing proposition.

 

[NicksPizza]

Robbing tomorrow’s cash flow to pay for today’s impulses is dangerous. They take your money regardless of what happens . . . before you get any. They take their cut then send you the rest. I don’t want to give that sort of control to anyone, let alone paying THEM for the privilege.

So many reasons not to do it and no really goods ones to try it out. If it were a legitimate and high value product, then it would be advertised publicly by all sorts of lending institutions rather than by unsolicited phone calls at random times of the day.