Handling common objections honestly

Most objections are a merchant telling you what they are worried about. Treat each one as a question to answer, not an obstacle to get past. Acknowledge it, ask what is behind it, answer with facts, and accept that sometimes the merchant is right.

Often it is. A merchant cash advance is one of the most expensive kinds of business financing. Do not argue with that. Instead, put the cost in dollars next to what the money does.

• "You're right, it's not cheap: this one costs $11,200 on $40,000. What does the cooler replacement mean for the summer?"
• "Would a smaller amount do the job? $25,000 at the same terms costs $7,000."
• "If you can wait two or three months, your bank or a line of credit may be cheaper. Want me to check what that would take?"

If the return on the money is lower than its cost, the honest answer is not to take it.

Then the bank may be the better choice. Bank loans and lines usually cost much less. Ask a couple of questions to see whether it is a real option:

• "Have you applied? What did they ask for, and when will they decide?"
• "Does the timing work for when you need the money?"

If the bank can fund it in time, say so and offer to help if it falls through. Merchants remember brokers who told them to take the cheaper money. The term loans vs MCA vs lines of credit lesson covers the differences.

That is reasonable, and pushing for a same-day signature is how merchants end up in deals they regret. Help them think instead:

• "Of course. What's the part you're unsure about: the cost, the payment, or whether you need it at all?"
• "Is anyone else involved in the decision, like a partner or your accountant? I'm happy to walk them through the numbers."
• "This offer expires on Thursday. Can we talk Wednesday afternoon?" (Only when the expiry is real.)

Send the offer summary in writing, with payback, payment and term, so they are not deciding from memory.

Respect it. Sending the same deal through a second broker usually makes it look shopped to funders, and funders generally honor the first submission they receive. Ask whether they are happy with how it is going, and if they are, leave your details and offer to be a second opinion on any offer they get.

Log what the merchant said with Log call in Ferrylend, and set a Next follow-up for the day you agreed, so the next call starts where this one ended. When an offer is in, the offer calculator gives you the cost in dollars and the payment as a share of revenue, the two numbers most objections come down to. If the merchant goes elsewhere, move the deal to lost with a reason (or record why on the lead), so your history shows which objections you are really losing on.