You might not think to refinance or consolidate a merchant cash advance (MCA), but it might just happen to you if you are carrying a balance from an advance and decide to take out another. If you are considering or will ever consider taking out a MCA, this article is a must read!

When dealing with non-traditional financing options, it’s really important to understand what you’re giving and what you’re getting. This is especially true when it comes to taking out a second advance or loan from some of these alternative finance options.

We’ve seen Merchant Cash Advance (MCA) and Cash Flow Loan providers follow 
a weird practice that results in deeply hidden fees charged to the business owner.
First we’ll talk about this practice with MCAs Like loans, with MCAs you get a set amount of cash up front, called the advance. But instead of getting charged an interest rate, you agree to pay back the advance amount plus a good chunk more, e.g....

Across the country, business owners who attempt to get a small business loan with bad credit are discovering that, rather than extending a warm and hearty handshake, their bank is giving them the cold shoulder. 

Why is this? It’s because banks don’t want to take any risk, and they view business owners with bad credit as personified “Red Flags”. As such, they won’t even consider offering a small business loan. They’re much more interested in focusing on their large and enterprise customers, and earning transaction and serve fees.

On the other hand, here at Shield Advisory Group, we understand that business owners are often forced into making regrettable financial decisions. For example:

• A major customer may have declared bankruptcy, leaving behind tens or hundreds of thousands of dollars in unpaid invoices that, frankly, aren’t worth the paper they’re printed on.
• A thriving market may have suddenly been gutted due to...

Shelf corporations are not looked upon unfavorably by regulators, lenders, or the business reporting agencies. Many say they are unethical, borderline illegal, and some call them a fraud.

From Dun & Bradstreet… “It is unclear whether it is legal to use shelf corporations to access credit. It is clear, however, that this is a deceitful, unethical maneuver that serious entrepreneurs should avoid.” If the credit bureaus learn about the company being under new management, they will list it on their reports, effectively “re-aging” the company.

“Shell and shelf companies can be created domestically or in a foreign country. Shell and shelf companies are often formed by individuals and businesses to conduct legitimate transactions.

However, they can be and have been used as vehicles for common financial crime schemes such as money laundering, fraudulent loans, and fraudulent purchasing. By virtue of the ease of formation and the absence...