Business financing in St Martin Parish.

St. Martin Parish is a close-knit community, and unfortunately, predatory lenders know that small business owners here often have few banking options. Here are the warning signs to watch for:

**Merchant Cash Advances (MCAs):** These are not loans — they are purchases of your future revenue. They often carry effective APRs of 60%–300% or more. They are aggressively marketed to small businesses and can trap you in a cycle of debt. If someone contacts you unsolicited offering fast cash with no credit check, it is almost certainly an MCA.

**Factor rate traps:** MCAs use 'factor rates' (like 1.4x) instead of APRs to hide the true cost. Always ask: 'What is the APR on this product?' If they won't give you a straight answer, walk away.

**Upfront fees before funding:** Legitimate lenders do not charge large upfront fees before approving or disbursing your loan. Application fees are common and small. Demands for hundreds or thousands of dollars before you see any money are a scam.

**Loan stacking:** Some brokers will encourage you to take multiple loans from different lenders at the same time, all with high fees. This quickly overwhelms a small business's cash flow.

**Pressure and urgency:** Any lender who tells you 'this offer expires today' or 'you must sign now' is not acting in your interest. Take your time. A real lender will wait.

**No written disclosure:** In Louisiana and federally, you have the right to a written loan agreement showing the full cost of the loan. Never agree to anything verbal only.

**Signing over a business bank account:** Some MCA contracts give the lender direct access to your bank account via an ACH authorization. Read every line of any ACH authorization carefully before signing.

If something feels off, call the Louisiana Office of Financial Institutions (OFI) at (225) 925-4660, or reach out to a SCORE mentor for a free second opinion.