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A good broker or financial consultant knows his or her industry to a T. The broker will do all the heavy lifting for you while you’re out helping to strengthen your business. A good broker you can trust will always present you with the best solution long term. The broker will know just off a glance of your bank statements and credit score on what you will be approved for which will result in minimal inquires on your credit history. A good broker is also a good listener and will prepare a report to present to the lender or investor to add as much strength to your file as possible, and depending on the reputation of the consulting firm they usually will have good relationships with the lender or investor to bypass nuance stipulations that would be requested if you were to go in alone. It’s your decision whether you want to go in alone but you would be walking into a lion’s den unequipped with knowledge and influence that a broker/consultant will prevent you from being taken advantage of.

Over the years merchant cash advances have built a reputation of desperate business owners looking for money with high-interest rates. But this is far from the truth, as it all depends on your profit margins and your plans for utilizing the deployment of the working capital. The common misconception is the high-interest rate over 6-12 months which is the usual terms offered for Merchant Cash Advances, but if you were looking at an average business loan the offer you will find out it is worse Let me explain for instance a bank loan for 36 months, prepayment penalty, and 19% APR equates to 57% interest over 3 years and prepayment penalties ranging from 5%-15%. On the other hand, you have the merchant cash advance, a loan that is 8 months at 35% interest rate, no prepayment penalty, and renewals when the loan is 50% paid down. When you compare the two the merchant cash advance is better because business moves fast, and you shouldn’t need to utilize the capital for more than 6 months in most cases. Not to mention that the interest is tax-deductible. If you were to compare a bank loan, you’re stuck with it for 3 years, you already paid and invested in what you wanted but you’re left with no additional capital and a big prepayment discount. Another misconception is the daily or weekly payments of a merchant cash advance compared to a bank term loan is that a merchant cash advance’s daily/weekly schedule and a bank loan is at a monthly frequency. The census of default rates for a bank loan at a monthly payment frequency is actually 25% higher merchant cash advances whose schedule repayment is daily or weekly. Why is this the case? Because business moves fast when it comes to the inflow and outflow of capital. A daily or weekly schedule allows the business owner to keep better track of the repayment schedule so he or she can better strategize the inventory, material, or service that needs to be invested into helping the company grow. Merchant cash advances when used responsibly is highly beneficial because it is working capital to strengthen a business owners cash flow. This 30-year industry wouldn’t be here this long if it weren’t for the benefits that it provides for small business owners to handle in their day to day operations.

Analogous to having a good broker or consultant work for you is like having a good lawyer represent you in court and not a public defender your chances are slim without a good lawyer. Another example is an athlete without a sport’s agent who can negotiate and find the best contract for the athlete otherwise the athlete would get clobbered because he has no inside knowledge of how the industry works. In the alternative small business loan space this same concept applies, a good broker will value your business long term, and because of his or her expertise in the industry will have the foresight to know what may seem like a good solution at the time will be a cliff fall in the interim future. A good broker will measure all of the options available and make the proper judgment on how well the small business loan will benefit you. At VIP Capital Funding our consultants are experts in their craft with decades of experience, who strive on keeping long-term relationships with their clients to keep the business owner’s company strong. At VIP Capital Funding our consultants are experts in their craft with decades of experience, who strive on keeping long-term relationships with their clients to keep the business owner’s company strong.

Unlike many brokers in this space who are in it for a quick buck with no disregard for the health of the business owner’s company, VIP Capital Funding and it’s a group of consultants identify the problem and work to present the best long term solution that is mutually beneficial for all parties involved; the bank/investor/broker/borrower. That is what good business is all about when everyone benefits. Vise versa a bad deal everyone loses that is why we think outside of the box to make the best deals happen for our business owners. This creates great value in the economy as business owners have people who depend on them for their livelihood; so with that mindset in mind, we only want to give the best. There have been countless times where we have advised business owners to be patient and not take the deal that would solve the problem in the short term but wait a few months when revenue and credit score picks up to land an even better deal. This builds trust and confidence in the relationship between the broker and the client because now the client understands that the broker isn’t in it for the money but to solve a problem. In the economic marketplace, you are paid in direct proportion to the problems that you are able to solve, and in our case, we solve massive financial problems where many people will be let down if the business doesn’t succeed.