What are the Red Flags to Look Out for When Choosing an ERC Company?

If you’ve been around the block a few times and you’re looking for that perfect ERC company, there are a couple of ways that you can make your search easier. First off, look at the company’s marketing strategy. For example, check out to know how they work.

You want to be able to trust them with their marketing and products, so if they seem shady right from the start, it might be time to move on. If they’re willing to take some of your money without actually giving anything in return or providing results, then steer clear! That’s not how it works! 

Here are a few more red flags to look out for when choosing an ERC company.

  • Hourly rates in addition to contingency fees

If you want to protect yourself, then look for some contracts that include a contingency fee clause. This means that if the project fails, then you will be refunded according to the amount of work done. Hourly rates in addition to contingency fees are a big NO.

  • Requesting payment to evaluate your eligibility

Some ERC companies will want to take some of your money before they even start working on your campaign. Remember that they aren’t obligated to do any work for you without a contract, so don’t pay them anything until you’ve given them the green light.

  • Requiring a portion of a “success fee” before filing your credit

Finally, some companies will ask you to pay a portion of their success fee. This is basically a sneaky way of obtaining your money before they start working. You should not have to pay these companies anything before they’ve actually earned your trust!

  • Companies without a history of tax credits

While most of the companies in this industry have a long history with tax credits, it’s extremely important to make sure that you find a company that can actually successfully help your campaign. The best way to do this is by checking their website and history.

  • Inability to provide references or case studies

Of course, you’re going to want a company that you can trust. This is why it’s extremely important to find an ERC company that can provide case studies and references from previous clients. If they don’t have any, then what makes you think they’ll be able to help you?

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