A Quick Look at a MCA
First, lets discuss the Merchant Cash Advance Product understand what an MCA Actually is.
A Merchant Cash Advance (MCA), also known as “Purchasing Future Receivables” is not to be confused with an actual Business Loan. Rather, an MCA is focused on the last several months of Revenue and Sales Performance of the Business itself. An MCA is an alternative financing vehicle that appeals to businesses who need a cash injection relatively quickly, in many cases within 24 hours depending upon the organization offering the product.
Typically the eligibility is determined by the following but many companies claim workarounds no matter how challenging a situation may be:
-An Active Business Checking Account
-Regular and Consistent Deposits of at least $5,000 – $10,000 Per Month.
-No Active Advances that are in Default
While most Merchant Cash Advance Funding Organizations have their own unique algorithms and underwriting requirements, generally speaking the approval rate tends to be much higher as the Personal Credit Profile is not the core focus of the approval process. By the way, if you need direct access to some of these Funding organizations there are two organizations who have been courteous enough to aggregate contact information for these companies. Checkout deBanked’s Merchant Cash Advance Funder Directory and Funder Intel as they are great resources for alternative business finance professionals.
While we are not financial professionals, we have an in depth understanding of many of the Alternative Business Finance Products work. In fact there are several types of payback arrangements that many Merchant Cash Advance Funding Organizations offer:
ACH Cash Advance – A Business sells its future receivables and a repayment is made each day by permitted a predetermined daily payback amount via their Business Checking Account through an ACH (Automated Clearing House) Payment. Typically this advance is based not on the traditional path of credit card sales but based on other deposits and the current cash flow situation of the business.
Merchant Cash Advance Split – A Business sells its future receivables and a repayment is made each day by Splitting each Days Credit Card Purchase Sales with the Cash Advance Company.
Merchant Cash Advance Lock-box – A Business sells its future receivables and a separate Bank Account (“The Lock-box”) is used which takes in all Credit Card Purchase Sales each day. In turn, the payments are divided up and forwarded automatically to the lender and the balance is sent to the business owner.
At Lead Tycoons, we generate leads everyday of Business Owners & Merchants who need access to Working Capital Solutions like an MCA. While every business is unique regarding performance and eligibility we feel all leads are best if the end users (ISO’s, Loan Brokers, and Direct Financiers) have a variety of alternative financing solutions to offer. Many times the Business Owner may want to access to different products so you can improve conversions when executing and re-marketing to leads.
We are here to support your marketing efforts whether you are a Direct MCA Funder, Independent Sale Organization (ISO), or Individual Business Loan Broker. We can and will get you access to Business Owners who may need your help with Financing Options. Feel free to Contact Us.