Things You Need to Negotiate with Merchant Cash Advance Lender

Negotiate with Merchant Cash Advance Lender

A merchant cash advance often known as business cash advance is one of the best funding options available to the business owners that need funds urgently. But before applying for a merchant cash advance, it is advisable for you to know what exactly is this business cash advance and whether it is right for your business or not.

A merchant cash advance is the lump sum cash advanced to the borrower in exchange for a percentage of future sales through a credit or debit card. Small business owners turn to these cash advances when they need the funds quickly and think that it is the only viable option. Although not in all situations merchant cash advance can prove to be a good option in certain circumstances. But before deciding on the same, the business owner has to consider risks and fees associated with this type of lending which is not regulated by any bank or financial institution.

Whether it is adequate working capital or business expansion, small business owners turn to merchant cash advance as it is one of the attractive options available to operate and expand their business. A little research online into this unregulated industry, you will be amazed to see the number of lenders that are ready to offer cash advance. However not all are genuine, beware of the lenders that take you and your business for granted once the cash advance is availed.

Don’t just avail cash advance without checking because the lender has contacted you. Once have collected enough information about the bank you decided to avail cash advance, then next step is to negotiate with the merchant cash advance lender on the possible things that can save you from future confusions.

Negotiating with the Merchant Cash Advance Lender

The success of the business always depends on the negotiation skills of the owner. Negotiating with merchant cash advance lenders will benefit the business to a great extent. Before you start to negotiate with the lender, it is important for you to know about the terms you need to negotiate. There are three terms of the purchase sale agreement between the lender and the borrower that can be negotiated; discounts, rates, and repayment schedules.


Credit card/debit card processing merchants happen to advance cash loans to businesses that have credit/debit card sales. Hence it is advisable to check with your current credit card merchant whether they deal in merchant cash advances or not before starting to look for a different lender. A dealer who is familiar with your sales pattern and has an established relation with you will always try to work out better discounts for you.


The rates can be negotiated based on the sales history and financial position of the business. With a good sales history and better financial picture, you can negotiate the better rate with your lender. Alternatively pledging business equipment or bank account access as collateral can get you better interest rate. Lenders who offer such options should be carefully selected and needs to be checked through Better Business Bureau

Repayment terms

The repayment on Merchant cash advance is not fixed as it entirely depends on some sales making it negotiable. You can negotiate the same when choosing the lender but remember that monthly fee or daily fees will add up to the transactions.

It is strongly recommended to read the agreement carefully before signing as the terms and conditions cannot be negotiated once the document is signed by the borrower.

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