In any type of business dealing, transparency is important. There should be no hidden arrangements or ulterior motives – the terms should be clearly laid out.
We believe that this is particularly important in the financial services industry, and unfortunately, we think that our industry often lacks transparency. Financial products and services are often very complex, involve a lot of math, and are not entirely clear to people who don’t live and breathe these things. There’s overpriced insurance, mutual funds that don’t add value, hidden fees, and lots of fine print. In fact, the lack of transparency in financial products is a very big part of what caused the credit crisis of 2008.
We recently spoke with an individual who once worked in the merchant cash advance industry for one of our competitors. They weren’t a direct competitor as there is a slight difference in their service. In any case, it was shocking to hear that this company was not transparent in the way that it provides its services. Their clients did not realize exactly what it is that they were getting, and the individual we spoke with ended up quitting his job because he could no longer be happy providing this type of service.
At Merchant Advance Capital we are proud to offer a simple service that is easy to understand. There are really only a few numbers that a potential client needs to know. Those numbers are: the amount we advance, the percentage of debit/credit card sales we withhold, the amount that is owed, and the length of time it will likely take to pay back the obligation. Once the deal is set, the withholding percentage never changes and the length of time it actually takes to pay back the obligation depends entirely on the client’s sales volumes. And our clients don’t need to have assets as collateral. It can’t get much simpler than that! And if you have any questions whatsoever, we’re always happy to clear things up!