While the application process between a Conventional Business Loan and an MCA are similar – there are distinct differences: An MCA is the purchase of future receivables at a discounted rate, making it a transaction rather than a “loan.” There is no interest rate involved as the “Funder” is simply purchasing future revenue at a discount; not lending you Capital. In other words, you are borrowing against your future revenue for an agreed to percentage. Essentially you sell a portion of your future sales to acquire needed capital immediately.

In cases such as Gas Stations, Restaurants and small Retail Establishments who rely on a flow of Credit Card Transactions, the MCA can be repaid as a % of your daily credit and debit card receipts. Most however pay back their advance based on a percentage of their daily income. The lender sets a percentage (factor rate), and payments are withdrawn from your bank account daily, weekly or monthly. A factor rate determines the cost of an MCA rather than a percentage/interest rate, which is common with business loans, lines of credit or credit cards. The factor rate typically ranges from 1.1 to 1.5.

Repayment terms are often sixty to one-hundred and twenty days, however they can range from eight to nine months. MCAs, in this way are more like short-term bridge advances rather than a conventional bank loan. Conventional loans may feature a term of 2-10 years, however they require substantial upfront paperwork, a pristine credit rating and collateral. Complete our Application Here

Since MCA lenders evaluate risk differently from Banks, it is easier for Small Businesses to qualify for them. Rates on MCAs are typically higher than other loan products, however this comes with many valid reasons. It is based on Lower Credit Rating requirements, far less background information, the speed of delivery and the fact that no collateral is required. These are Un-Secured Advances. Although the terms on an MCA are shorter than bank loans, there are back end benefits most are not aware of. Lending Institutions that we partner with cater to small business who are viewed as customers that continue to come back for re-structuring options. We have in place roll over options which allow you to restructure your original deal to extend terms and to receive additional capital as needed

MCAs offer several Major Advantages over other types of funding

1) Speed of Completion: Merchant cash advances are engineered for speed. If your business has an urgent need, such as a crucial piece of equipment breaking or a lucrative opportunity to seize, an               MCA will give you quick access to funds without the delays and red tape expected with Bank Loans.

2) No Collateral: Unlike Small Business Loans, no collateral is needed to secure an MCA.

3) Revenue Fluctuation and Seasonality: An MCA makes is a viable option for small firms with fluctuating revenue, or those with seasonal businesses.

4) Ease of Re-Structuring: As mentioned, most lending institutions we partner with have roll over options which allow you to restructure your deal to extend terms and receive additional needed capital.

The Critical Importance of Consolidating High Interest Loans or Advances

Many we work with are stuck in High Interest debt; namely loans that hurt cash flow. These loans can be consolidated for both payment and rate reduction. Typically, in order to consolidate any outstanding balances with a Business Loan, the new approval amount must double the total amount of existing debt.

In this scenario, the Business Owner would “Net” 50% or more of the new loan amount. If the total outstanding debt exceeds 50% of your average monthly revenue, then please refer to the information below on various types of consolidation for possible options. Complete our Application Here

Tier 1 Consolidation

This model is unique in the sense that it is a combination of a factor and a term loan. The Tier 1 Advance features monthly payments and is commonly used for the purpose of consolidation of existing cash advance debt. One of the most appealing aspects of this model is the early payoff benefit. At any point after six months, clients may pay the remaining principle owed without penalties or fees.

Zero Net Consolidation

Until recently, in order to consolidate cash advances, you would need to qualify for a new loan amount equal to twice that of the outstanding debt, so that your business would “Net” 50% of the new loan amount (after paying off all balances). Many involved with multiple advances renew one to assist them with payments on the other. This is common and addressed through Zero-Net Consolidation. This model provides you the ability to consolidate all debt, or leave the largest position untouched, without requiring the business net a specific percentage of the loan amount in order to qualify.

Layered Consolidation

This Program is designed for businesses that have multiple loans outstanding and need to lower payments. This program is used to pay off balances, while alleviating the stress imposed on cash. The funding process is “Layered” in that each week a deposit is made into your account. This deposit equals the total dollar amount of payments that are scheduled to be deducted from your account that week by existing lenders. Rather than having to focus on multiple payments, a new deposit covers them each week until those balances have been paid. In turn, you pay one, significantly reduced daily payment.

Flex-Pay Advance Consolidation

Available to healthcare businesses, the Flex-Pay Advance is a viable alternative to fixed daily or weekly payments. Rather than having a fixed payment, the repayment is structured so that the lender receives a percentage of insurance deposits from insurers. This allows repayment to “float” with your revenue, creating an easier cash management scenario and allowing you to focus on your practice.

Our Term Loan Process vs an SBA or Conventional Bank Loan

                                      Faster Process | No Collateral | No Personal Guarantee | No Pre-Payment Penalties

                                                                                       Our Term Loans feature 1-4 day Funding vs 3 to 12 weeks for SBA or Conventional Bank Loans

                                                                                                 We Consolidate MCA Loans | Convert daily/weekly payments into manageable monthly payments

                                                                                                 Our Loans are Un-Secured Installment Loans paid monthly to eliminate daily payment burden.

                                                      We do not require Collateral; There is no need to tie up real estate, equipment or other assets

                                                                                                 We have No Pre-Payment Penalty which is commonly found in Conventional Term Loans                                                                                                                                                                          

                                             Start the Process | Complete our Application Here        

                                    Post Covid 19 Capital | Equipment | Consolidate High Interest Advances | Inventory Control | Fleet Maintenance

                                  Bridge the Gaps between Start Date & Pay Date | Disaster Recovery | Expansion | Build - Outs

What does “2nd  & 3rd Position” mean?

An existing business loan or cash advance featuring daily or weekly repayment is commonly considered a “position.” Second position funding occurs when a business has an outstanding balance and secures additional capital, without paying off the existing balance. 

Many capital providers consider some competitor balances (loans/ advances/credit lines) to be a “position,” whereas others do not. This is one of the many ways in which all capital providers are unique and one of the underwriting guidelines we’ve been able to identify across the board and use to our client’s advantage. Complete our Application Here

What are our fees?

Our fees are paid directly by our partners, making our services free to you. Many brokerage firms charge additional fees directly to the business which is frowned upon in the industry. Lenders provide an offer based on their underwriting to ensure that it is an affordable loan/advance, which does not take into account fees charged by the broker. In fact, most partnership agreements strictly forbid this practice.

Are we a Direct Lender?

While we reserve the right to invest in loans, we are engaged in both Direct Lending & Brokering. Our ideology is that the party representing your business is responsible for providing un-biased advice and putting the best interest of your business above any lender.  If we cannot facilitate the lending request, we are partnered with lending institutions, which consist of all lending styles and packages.