In todays business world, nothing is more valuable than information. Whole companies, even industries, are built upon information. The merchant cash advance industry has, over the past few years, taken an extremely proactive approach to disseminating accurate, quality information about the nature of its services.

Of late, these efforts to inform merchants about what a merchant cash advance entails have paid off, with even the mainstream media admitting that merchant cash advances are an important source of small business funding.

Merchant Cash Advances can Save Businesses in a Down Economy

Restaurants have been especially hard hit by the economic downturn, and within the restaurant industry, it has been the smaller, less-established restaurants that are hurting the most. People know what to expect cuisine- and price-wise from an Olive Garden or a Red Lobster. But taking that chance at the place on the corner has become something of a luxury. Meanwhile, the place on the corner (owned by Richard and Alma Garcia, with two teenagers who want to go to college) has needed restaurant financing.

And big banks have not stepped up to the plate--no pun intended.

Merchant cash advance providers, meanwhile, have offered restaurant financing to that place on the corner. Therefore, the place on the corner is still in business. As a result, people like the Garcias have begun to spread the good word that merchant cash advances are not a bad thing, in fact quite the opposite.

Information like that, which comes with a story and a face, has been invaluable in raising the public perception of a merchant cash advance.

A Welcome Watchdog: The North Merchant Cash Advance Association

Once upon a time, the merchant cash advance industry was thought to be populated by shysters. Now, the merchant cash advance industry looks clean as a whistle compared to the mass shenanigans at huge mainstream banks.

This increasingly clean reputation added an extra layer of luster with the emergence of the The North American Merchant Advance Association.

Dedicated to educating merchant cash advance providers, advocating ethical behavior and proper legislation in the industry, and generally making sure that the funny business takes place elsewhere, NAMAA is doing a commendable job of keeping this valuable source of business funding alive and well.

And on the right side of the law and public perception.

Talk Straight, and Talk Numbers

Not many people enjoy looking through 50 pages of loan documents. The temptation is to just sign on the dotted line and hope everything turns out fine. That attitude has been partly to blame for the gigantic mortgage mess dragging down the world economy.

Merchant cash advance providers have gone hard in the other direction. The best merchant cash advance providers talk straight and talk numbers to their customers. Luckily, a merchant cash advance arrangement is easy to understand, when stated clearly.

The merchant agrees to pay, for example, 25 percent of its monthly credit card sales to the merchant cash advance provider in exchange for an advance of $5,000. The deal lasts 12 months.

Unlike the adjustable negative amortization option ARMs of yesteryear, a merchant cash advance is an entirely comprehensible small business funding agreement.

Sources

Business Week

The North American Merchant Advance Association

CNN