Running a small business is a challenging task as you have to handle multiple responsibilities and make crucial decisions quickly. One such decision is acquiring funds for your business. However, it's important to be aware of practices like Double Dipping, which can significantly impact your total cost of capital.
Double Dipping is a common practice in the lending industry where a lender charges interest on the same amount of money twice. This can happen when you renew your loan or cash advance with the same provider. This means you end up paying interest on the original borrowed amount as well as the interest charged during your previous term.
Stacking is another practice where you take on multiple advances, resulting in 2 to 7 payments at the same time. This leads to a debt loop with excessively high costs, where you end up paying off a loan or advance with another loan.
To avoid these practices, consider opting for consolidation or a business line of credit.
As a small business owner, it's important to understand how these practices affect your bottom line.
If you want more information on these practices or how to avoid them, please contact us at
(888) 997-3062
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