Always check out the Company
Anyone can set up an impressive website and appear to be much larger and more credible than they really are. Check the local Better Business Bureau, ask for references, and talk to existing customers.
Who’s behind the Company?
If it’s a big public company you’re usually pretty safe. Your $30,000 advance won’t break them. If it’s privately held, find out who the shareholders are. What’s their history? How long have they been in business? Who’s money are they using…their own, the banks, or a bunch of guys that ride motorcycles? Are they financially solid or will they be out of business in 6 months?
Is local important to you?
More and more businesses these days prefer to “keep it local”. If this is important to you make sure you’re picking a 100% Canadian owned and operated provider. Most of the larger merchant cash advance companies in Canada are based out of the US – not that there’s anything wrong with that – but if keeping it local is relevant, Go Canada.
Are you talking directly to the funder?
Make sure you’re talking to the people that a) make the final financing decisions and b) provide the cash. Many providers use third party re-sellers or “brokers” that are usually commission based, wear cheap suits, have bad hair and don’t care about your business – they just want to make the sale and move on to the next one. Third party brokers also drive the cost up – the fewer hands in the process the better rate you’ll get.