Navigating Business Financing: Insights on MCA Loans and Alternative Funding with Apollo Financial
In this episode of Financial Life, Matt Dillingham and LaShawn Smith from Apollo Financial delve into Merchant Cash Advance (MCA) loans and their impact on businesses. They discuss consolidating MCA loans, share success stories, and explore alternatives like invoice factoring. The episode covers the risks of online loan applications and offers guidance on debt restructuring and refinancing. Listeners learn to compare business term loans with MCAs and receive advice on avoiding debt traps. Economic factors affecting business financing are also discussed. The episode wraps up with resources, a prequalification process, and contact information.
Key Points
- Merchant Cash Advances (MCAs) can trap business owners in high-interest debt that can be as high as 200% APR, often requiring daily or weekly repayments.
- Business owners should explore alternative funding options such as business term loans, invoice factoring, and business lines of credit, which generally offer more favorable terms and don't require pledging business assets as collateral.
- Using a broker service like Apollo Financial can save business owners time and prevent multiple credit inquiries by shopping for the best funding options on their behalf, leading to a higher likelihood of approval and better loan terms.
Chapters
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| 1:23 | |
| 2:35 | |
| 6:24 | |
| 11:14 | |
| 16:47 | |
| 20:00 | |
| 24:46 | |
| 28:14 | |
| 30:45 | |
| 31:13 | |
| 32:20 | |
| 33:08 | |
| 34:18 |
Transcript
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