With the market still on the ropes after the sub-prime mortgage mess, small businesses are acknowledging it is harder than ever to be qualified for a traditional bank loan. A merchant cash advance may be a great solution. A swift approval time, reasonable advance totals of up to $250,000, and a flexible repayment plan are all benefits for obtaining this alternate direction for needed capital.But, a small business owner would be wise to look for more than just the funding they can procure. The North American Merchant Advance Association (NAMAA) has a list of best business practices which they back for merchant cash advance providers. Assuming the company offering you a business cash advance does not follow these practices, it is probably best to look another company. The methods are as follows:- Illustrate accurate disclosure of fees – NAMAA does not condone closing fees as part of the application process of merchant advances but recommends that any such dues be clearly understood and provided up front. The payback total should be completely illustrated and determined prior to finalizing the details.- Give clear disclosure of recourse – Actually, merchant advances are not loans, alternatively they are a purchase of future credit and debit card receivables. As such, the merchant could be held personally accountable for any monies not returned if the merchant choose to violate the agreement.- Be sensitive to a merchant’s cash flow – A standard arrangement consists of the merchant repaying a specified percent of credit card receipts each month.- Marketing documents disclosure – All marketing materials should make it clear that the contract is one of factoring, not a loan.- Monitor your Sales Agents/ Brokers – Merchant advance providers ought to be certain that their sales agents or brokers are appropriately presenting the product.- Proper remittance of outstanding Merchant Cash Advance Balances – assuming a business opts to obtain an additional advance with a new company the new advance will need to immediately cover the previous balance instead of trusting the merchant to pay off the balance.