Perspective
The Questions to Ask Before Signing Another Advance
If you are considering a new advance, these are the questions a good funder will answer without hesitation.
The Business Debt ReviewMay 20266 min read
Sometimes an advance genuinely is the right tool. But the difference between a manageable advance and a damaging one often comes down to what you asked before you signed. Here is a short list worth keeping.
- What is the total payback, in dollars? Not the factor rate — the full number I will repay.
- What is the estimated annualized cost? A reputable funder can provide an APR-equivalent.
- What is the daily or weekly debit, and over what term?
- Is there a UCC filing, and how broad is it?
- Does the agreement include a confession of judgment?
- What happens if I have a slow month?
- Is there a benefit to early repayment? With a factor rate, usually not — know that going in.
The tell: how a funder responds to these questions is itself an answer. Clear, written responses are a good sign. Deflection is a good reason to pause.
If you are weighing a new advance and want a second set of eyes before you commit, that is exactly the kind of thing a free review is for.
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