Did your business default on an mca merchant cash advances in the past? If your business wants to get a cash advance again, consider new program options here.
Some businesses that have defaulted on one or several mca cash advances in the past decide they want to get advances again because they now understand the amounts and daily payments they can handle and make. Programs are also available for businesses that have missed cash advance payments, or have had delinquent or lapsed payments.
How to get another MCA Merchant Cash Advance after a default
Step 1: Research companies online that offer merchant cash advances to businesses that have a previous default on an mca cash advance. Closely review restrictions for terms and conditions of approval.
Step 2: TIP – Repayment of a previously defaulted merchant cash advance as well as the amount of time since the default may affect your ability to be approved under different programs. Ask if there is a minimum time requirement since the cash advance default. Know the month and year your business first officially defaulted and the amount of the default. Default reporting drags on time wise in business and personal credit reports and makes it look like the default was much more recent than the original date the merchant cash advance company declared a default. Any payments you made on the default often do not appear on the business and personal credit reports a lender looks at and you will not get credit for any payments made. Provide documentation of the payments made.
Step 3: Select the programs that your business will most likely qualify for.
Step 4: Make contact with these lenders that fund with previous defaults. Try to verify how likely your business is to meeting the funding program conditions and requirements.
Step 5: Submit an application for funding. Provide all documentation you have that improves your chance for an approval. Provide documentation that proves the time since the default and if any payments were made.
Step 6: If approved, review terms and conditions. Rates and terms will not be as favorable for some time on your advances after defaulting.
FAQ Frequently asked Questions on getting an mca merchant cash advance after defaulting
Why will most cash advance companies not fund me after a merchant cash advance default?
If your default was within the last two years, almost all cash advance companies believe your chances of going past due again are too high. Lenders want to see an extended period of time after a default before giving your business funds again. That often is two years. A few programs will consider funding again after approximately six months. The amount of time may be shorter based on your businesses situation. Does your business generates over $50000 per month in revenue? Then it will be more likely to get another cash advance sooner after a default.
Can I get a merchant cash advance after a default?
Yes. In about 6 months after a default your business may be considered for another cash advance and other types of financing. Approval depends on how well your business has recovered and also how much revenue it now has per month.
How long after a default can I get another cash advance?
Your business can be considered for another cash advance and other funding types 6 months after a default. Keep good records and documentation on the exact time you were formally declared a default by the previous cash advance company.
How do I know if I defaulted on a cash advance in the past?
You should have received correspondence through the mail or email or by telephone that your delinquent cash advance was declared a default.
What if I did not repay any of the the defaulted cash advance?
It may be easier to get another cash advance if you repaid or settled the defaulted cash advance. This is because future lenders would rather know that your business made an effort to repay some of the advance or tried to reach a settlement to pay a lower amount to try to satisfy the debt.
Can I get more if I repaid the merchant cash advance that I defaulted on?
The dollar amount of a future advance after a default depends more on your current revenues and situation rather than if you repaid the merchant advance you defaulted on. Partially or fully repaying a cash advance after a default will play a bigger role on whether you will be approved or declined.
I defaulted on more than 1 cash advance. Can I still get another mca cash advance?
Yes. You may still be able to qualify for a new advance. Approval depends a lot on how many advances you had as well as how long it has been and the total amount you defaulted on.
Does it matter how much the amount of the defaults were?
The amounts of the defaults do matter and will be looked at along with other things such as how much revenue your business is making now.
I am still in collections on my old merchant cash advances. Can we still be approved for funding?
Yes, your business still has a chance to qualify for more funding. Provide the details of the collection activities and they will be reviewed.
I am still negotiating with attorneys on my previous defaults. Can I still qualify for a new advance?
Your business may still qualify for a new advance if you are still negotiation on your previous defaults. Collections and negotiations on old defaults and non payments can go on for months or years. Any repayment or settlement will be looked at along with how much time has gone by since the original default.
I paid a settlement on a merchant cash advance instead of defaulting the entire amount. Can I show a settlement letter and get another business loan or advance sooner?
You may be able to get another business loan or cash advance sooner if you paid a settlement instead of the full amount. Defaulting on the full amount of the mca cash advance is the worst way to go. Paying a settlement shows that your business made effort to pay money that was owed and that your business was still profitable enough to pay a settlement amount rather than a total default.
Get excellent merchant cash advance renewal terms your business will qualify for.
Get terms as long as 12, 16, and 18 months and lower rates. In some cases, 24 months and low rate factors.
How to get the best merchant cash advance renewal terms, lower rates and longer terms. How to Direction:
Step 1 Talk with a representative at your current mca company. Give them your most recent three months business checking account statements and ask them to review your file in advance of their underwriting reviewing your request.
Step 2 Ask the representative to estimate the renewal amount, the number of months and rates. Ask for a better rate on a renewal.
How to Tip: If a renewal offer is made, ask for at least a 2% lower rate on each renewal. Some cash advance companies will not pre-review your file. If they won’t, let underwriting process your file.
Step 3 Tell your current cash advance company that you are shopping for a better offer and are comparing their offer to others.
Step 4 Apply with one or two competitors. If they beat your current mca cash advance companies rate and terms, take their approval offer and ask your current cash advance company to beat that offer. Review the funding stipulations to make sure you can provide everything needed to close.
Step 5 Decide on the best of the offer terms, complete the transaction and receive funding.
People also ask, F.A.Q.’s frequently asked questions and comments.
Why is my renewal not longer than before?
In most cases, the cash advance renewal term will be the same as the one you originally took out. You must ask for a longer term.
If you have had a good pay history or your credit score has gone up, then the funder may give you a longer term on a renewal, but only if you request it.
Do not expect the funder to offer you longer terms on their own. MCA Companies want to put you in the shortest term possible and the shortest term you will accept.
Many businesses believe that if they had an excellent repayment history on their first cash advance, then they should get a much longer term and much better rates on all renewals. Your business may qualify for a longer term on a renewal. Request that immediately when you request the renewal.
What if my company’s situation has gotten worse since I took out the advance? Should I even apply for a renewal of my cash advance?
Contact your representative before you apply for a renewal and ask them, “what would prevent my company from getting another cash advance renewal?”
Listen to what the Representative says. Ask him what are the most common reasons companies are declined for a renewal. If he does not mention decline reasons that your company has, then you have already gone through a partial pre-review.
What can I do myself to get a better offer for my mca cash advance renewal?
Review your most recent 3 months business checking account statements yourself.
If the numbers are better than they were when you received your first advance and your credit is the same or better, then you have a good chance to qualify to get a better renewal offer from your current mca cash advance company, or a competitor.
What is interest on interest on an mca cash advance?
Interest on interest on a cash advance is when you renew your cash advance before it is paid off but you still pay interest or finance charges on the amount you have not paid yet. Even though the old contract is ending the interest on that old contract is not forgiven and it is rolled into the new mca contract. Some funders will forgive the remaining amount owed but most will not.
Make a list of this specific information. Discuss it in advance of applying with all cash advance companies you want to talk to. You may be able to either pre-approve yourself or pre-decline yourself before applying. It is better to know you will likely be declined before applying, rather than applying and being declined.
If the cash advance company is not willing to seriously pre-review your file, you can choose to apply anyway. Your goal is to get as many cash advance companies to pre-assess your file as possible. Do not demand they do in order to apply. If you demand that the cash advance company pre-reviews your file, you may be eliminating yourself from the best option available.
Close my business account to stop a mca merchant cash advance? If you are considering it, it is usually the worst way to get out of a merchant cash advance.
Some companies such as debt settlement companies recommend doing so as part of their settlement process. Business owners should know that intentionally closing your business checking account is considered a default by many merchant cash advance companies and lenders.
Don’t close your account. Choose an alternative below now. Complete the Secure DocuSign Secure DocuSign 30 Second Application here.
Or call us at Tel: 1-919-771-4177, or Question?
The following is what many debt settlement companies tell customers to do.
Sign a contract with the debt settlement company. The contract often allows the debt settlement company to represent your business in communications with lenders and mca merchant cash advance companies.
Pay the debt settlement company to start the process.
Close your business checking account per the instructions or advice of the debt settlement company
Allow the debt settlement company to continue to represent you in settlement talks.
There are several problems and possible severe consequences to closing your business checking account to stop paying cash advances or loans and signing a contract with a debt settlement company.
The lender can also consider this an intentional default or fraud.
The lender or mca company can file a certificate of judgement and may also be able to debit funds in other accounts you may have at the same bank or other banks
You may not be able to talk to the lenders or cash advance companies directly any more even if you want to. Language in the contract may not allow you to talk contact the funder directly
You may not have influence over the final settlement agreement.
The contract you sign take power and decisions out of your hands and puts much of it in the hands of the debt settlement companies.
Other options and alternatives to contracting with debt settlement companies and closing your business checking account
Contact the lenders directly and try to discuss your financial situation and reach an agreement with the lenders yourself.
Payoff the merchant cash advances with other loans if the balances are low enough
Discuss your financial situation with a business attorney
The advantage of some of these options in general is that they either show you are sincerely trying to work with your lenders to settle your debt, are forming a coherent strategy to do so, or have officially determined that you cannot pay. These also have advantages over closing your account.
FAQ – Frequently asked questions.
Question: Why can’t I close my account? I don’t have the money. The merchant cash advance companies will overdraw my account. I have to close my account.
Answer: There are cases when the mca merchant cash advance companies or other lenders may overdraw your account too much and too severely in a few days. You may feel this is a reason you have to do something. This can be a very valid concern. Anticipate in advance your account being overdrawn.
You should know several days in advance that your account may be overdrawn. Look at alternatives. If it is too late and you know the daily payment will overdraw the account, consider contacting your bank and change your account to not pay any items that will overdraw the account.
F.A.Q.’s, Frequently asked questions, comments and requests.
“Need an mca merchant cash advance renewal with better rates”.
Also frequently requested:
“I want an mca merchant cash advance renewal with lower rates and better terms.”
Answer: Your business can get an mca merchant cash advance renewal with lower rates and longer terms by choosing one of several programs available here.
The same programs also offer mca merchant cash advance renewals with rates as low as 12% to 15% and up rate factors and longer terms if your business qualifies.
Click above to complete 15 second request form.
How low of a rate can I get?
The lowest rates Start at approximately 8% to 12% rate factor for the best credit, longest time in business and strongest cash flow. For most businesses, rates in the low teens and higher are the lowest rates for merchant cash advances.
My mca merchant cash advance rate is super high. How can I lower my rate right immediately? I need to get a lower payment today or by the end of the week.
Lower your mca merchant cash advance rate right now by paying it off with a lower rate advance. Use the funds from your lower rate advance to payoff the remaining balance on your new advance. This works especially well when the balance of your existing advance is low.
There are some merchant cash advances that are similar to and work like a line of credit. Your business can borrow, repay, and re-borrow over and over. With these programs, your business can repay before the financing is paid off. By repaying before your balance is $0 (zero), you are able to use the product like a business line of credit.
Can we get a business loan instead of an mca merchant cash advance?
Yes, for many program options, your business can get a business loan instead of an mca merchant cash advance. Business loans will require a higher personal credit bureau score, usually around 575 to 600 or higher. A regular business loan may also require a longer time in business of longer than 1 year or longer than 2 years.
Yes, your business can get a business loan instead of a merchant cash advance if you qualify. Like the line of credit option, a regular business loan usually requires at least 1 year or more time in business and at least a 575 – 600 credit bureau score. Contact us for details.
Step 1: Review your business funding needs and cash flow. How much more can your business afford to repay per day and per week?
Step 2: Determine the approval amount your maximum daily repayment equals. The average cash advance is 9 months or 189 days. If the maximum additional daily payment your business can afford is $100 per day then $100 X 189 = $18900.
Step 3: Select the funders with the products that best match your businesses needs as well as credit and time in business.
Step 4: Contact the best second position cash advance options. Discuss your business profile with the representative. Select the best matching program for your business and apply.
Step 5: When approved look at the daily or weekly repayment and the mca loan contract. If you want to close, then provide all the required closing documentation and complete the transaction.
Step 6: Complete the transaction and receive funds into your business checking account.
Are you looking for a second position merchant cash advance?
F.A.Q.’s, Frequently asked questions, comments and requests.
What is a second position mca merchant cash advance?
A second position mca merchant cash advance is when a business takes out a cash advance while having one advance they are already paying on. In doing so the business will have a second cash advance that his considered to be behind the first advance. The business will then be making payments on two cash advances. The second merchant cash advance company considers the existing advance payment into their decision to approve a second advance as well as for how much and how long.
I want a second position merchant cash advance with low rates. Do you offer second positions that have longer terms?
You can be approved for another mca cash advance position and get rate factors as low as 1.19 if your business qualifies. If you already have a first position now, you may be able to payoff your existing first position cash advance and have just one advance.
How do renewals work ?
Renewals are available when your existing cash advance is 50% to 75% paid down.
What are the longest terms?
Terms are usually a maximum of 360 days. In some cases up to 10 years is available if the business qualifies.
Can you payoff my existing advance and make it into one loan?
your existing position can be paid off if your balance is low enough. Estimate the balances on your existing advances when applying.
How important is credit?
Credit is not the main factor. strength of cash flow is more important.
I need a low daily or weekly payment and for my daily payment to be lower than it is now. Can I get a lower payment than I have now?
The lowest daily and weekly and also monthly payments are available. terms as long as 24 months or longer are available to lower your payment.
Do I have other options if I do not qualify for a second position?
Other options include accounts receivables financing and asset based loans. For accounts receivables financing, your business can get paid about 80% of the face value of the invoice immediately. Once the company you have invoiced pays then your business will get the remaining amount owed less a 1% to 5% fee. Asset based loans can be against real estate or certain types of equipment.
Why is my second position less than my first position?
The second position is almost always less than the first position. This is because the first position approval amount was supposed to represent the most your business was able to handle and repay. So a second position would be less unless your business revenues increased since your business took out the first position.
Why is my 2nd position cash advance a higher rate than the 1st position?
A 2nd position is considered a higher risk than the first position
My offer for a second mca cash advance is too low. Why is it not higher?
Your second cash advance offer is probably lower because it is additional funding behind an existing cash advance.
How can I figure out if my business can afford an mca merchant cash advance? Calculate if your business can afford a business loan. If so, step by step instructions on how much of business loan or advance your business can afford. To get more information or apply for an advance safe for your business, begin below.
Can my business afford an mca merchant cash advance?
Find the lowest deposit month of your last 3 months business checking account deposit totals. Example, $50,000.
Take that figure and multiply it times .20. This is approximately the amount you should conservatively be taking for an mca merchant cash advance.
Contact mca companies and apply. If you are approved for more than your recommended safe amount, do not take more unless you are sure you can make the payments.
Close the cash advance and funds are deposited into your account.
How much of an advance can my business afford? Example, how to calculate:
Below is an example of how to estimate a conservative funding amount.
Look at your most recent (3) months business checking account statements. Find and add the amount of your total deposits. Most banks give you one amount and list it as “total deposits”. Some banks will also have a separate entry for electronic deposits. If your bank itemizes different deposit types, add them up. Example figures are below.
December total Deposits $25,000
January total Deposits = $15,000
February total deposits = $19,000
The lowest month is January at $15,000 in total deposits. Multiply $15,000 X .2 = $3,000. $3,000 is a safe and conservative amount.
A more aggressive amount is $15,000 times .5 = $7,500.
Figure out your daily payment. On average, the term of an mca merchant cash advance is approximately 6 months. For $3,000, your daily payment will be approximately $3,000 X 1.35 % (6 x 21) = $155.77 per business day. There are approximately 21 business days per month. The rate factor used here is 1.35.
If you can handle this payment for 6 months, you can close the transaction.
Other factors that affect offer and approval amounts:
Depending upon other factors such as time in business, average daily balances and amount of revenues, the funder may offer a much larger business loan or advance. Your business may be able to handle a larger amount. The purpose here is to determine what is a conservative and safe amount.
More disposable income with higher deposits
Businesses with higher gross deposits can often afford a higher advance. This is because the same percentage of disposable income equals a higher dollar amount. If your business has fixed total expenses of $7,500 out of $10,000, then it has disposable income of $2,500.
When gross deposits are $100,000 and fixed expenses are $75,000, then disposable income is $25,000.
In the later case, a business will be able to handle a larger merchant cash advance, because their total gross deposits are higher.
Many businesses continue to take out merchant cash advances by renewing them once they are paid off. If your business is taking out a merchant cash advance for the first time, try a lower amount first to make sure your business has the cash flow needed and can handle it. If so, you can take out a larger amount on a second advance.
FAQ, Frequently asked questions:
I need an mca merchant cash advance payment I can handle and pay. I need a cash advance safe for my business. How can I get that?
Refer to the formula above to figure out how much of a payment your business can afford. Also consider how much that would be per month. When businesses takes out an mca merchant cash advance with a daily payment, they often do not calculate how much that will be per week and per month.
How can I get a business loan that I can pay? I do not want a cash advance to put me out of business
Refer to the affordability calculations above. Every business is different but you can estimate approximately how much your business can pay. Start out with gross revenues, then calculate an average % of gross deposits.
“My daily mca merchant cash advance payment is too high.”
“I need a lower daily merchant cash advance payment”. If one of these frequent requests applies to you, review several options here to lower your daily mca merchant cash advance payments safely and quickly.
If you think your payments are too high, review your choices here. We specialize in lower daily merchant payments. Your payments can be safely lowered or eliminated without hurting your business. Get the lowest payment now rather than than paying the same amount. Most of all, apply now below:
Avoid closing your business checking account and being declared in default. These lower daily payment options are safe. They typically prevent a coj certificate of judgment from being filed against your business when you act immediately.
FAQ, Frequently asked questions, or comments:
How are my payments lowered?
Answer: The outflow of daily and weekly cash out of your business account is lowered by covering the debit of your existing advances until they are all paid. Your business is relieved of the merchant cash advance payments you are now making. Your business then pays a lower amount for a longer period of time.
How much can I get my payments lowered?
You can get the payment lowered 25% to 50% in most cases. Sometimes the payments can be lowered more, as much as 50% to 75%.
I have more than 1 advance. Can I get my payment lowered on all of them?
They may be lowered on all of them if you have 2 or 3 advances.
I have several advances. Can you help me?
Sometimes all of the advances cannot be lowered or eliminated immediately. You may be approved to lowering either most of them or all of them. The rest are lowered as you pay.
What are the risks?
There should not be any risks if you are approved for one of these programs and follow through on paying off the other advances. The biggest risk is not acting in time. Get rid of your mca merchant cash advance problem before it gets ahold of you.
I am being told by my merchant cash advance company that I signed the contract and I have to make the payments I agreed do. Am I stuck?
You are not stuck and there is also another option or two. You can pay them off or pay less.
My daily mca merchant cash advance payment is too high. Can I get a monthly payment instead?
You may qualify for a monthly payment program for enough to payoff the balances. Then you can payoff the merchants cash advances with the monthly payment loan. If your business does not qualify for a monthly payment, it may still benefit just as much with a weekly or daily payment.
The total amount paid can still be lowered just as much.
Get a lower daily payment today and also save your cash flow. Talk to a counselor today.
“I need a longer term on my cash advance”. “I need an advance for 12, 18 or 24 months.” These are some of the requests people have when they want a longer term merchant cash advance. They want more time on their cash advance.
Hundreds of businesses have gotten long term funding and a longer term merchant cash advance through programs listed below. We specialize in longer term loans and longer term merchant cash advances. Together we will get the longest term for you. Apply now below: Secure DocuSign 30 Second Application here.
Or call us at Tel: 1-919-771-4177, or Question? Contact us here.
FAQ’s Frequently asked questions and comments:
“How can I get a longer term merchant cash advance?”
Look at your overall business and based on your profile, try to figure out what are the longer term funding options your business might qualify for. See the list below. You may see that your business will not qualify and save to time.
“I need an advance longer than 6 or 9 months. What can I do? Make a list of all longer term programs and the main requirements. Ask what the approval terms are. Go down the list and eliminate the programs that you clearly do not qualify for. For the remaining programs, look at the benefits and requirements. Another option is to also contact the funder directly for assistance.
Longer term merchant cash advance. Longer term options than a mca merchant cash advance
Monthly payment options.
Many programs have a monthly payment option. Monthly payment business loans are harder to get and be approved for. Credit scores also have to be higher, often 660 or higher. The minimum time in business will need to be a year or more. The average daily balance of the business checking account has to be $2,500 to $3,500 or more.
Leaseback real estate
If your business has commercial real estate with equity in it, one option for much longer financing is to leaseback real estate. Funding amounts will usually be much higher and the terms are much longer, as long at 5 year or more. Payments will be monthly instead of daily or weekly. There can also be major tax benefits to this approach. Contact your tax professional for details using this method.
Asset based loan
Another option to getting a longer term merchant cash advance or longer term funding is to convert the merchant cash advance into something else. That involves a payoff. The new funding can payoff the old funding. One option is a loan against equipment. This type of funding is 24 to 48 months with a monthly payment. Equipment such as construction equipment, semi-trucks and also some types of machinery may qualify.
Accounts receivables financing
Accounts receivables financing does not directly get the merchant longer term financing. However, it can be an excellent way to improve cash flow and eliminate the need for a merchant cash advance or short term loan in the first place.
If a business can improve their cash flow and not have to take out another short term advance, they can avoid taking out a business loan. This type of financing should be seriously looked at when funding options are considered.
“I don’t want accounts receivables financing” or “I don’t want factoring”, some clients tell us.
Many merchants are resistant to merchant cash advance financing. They are afraid their client accounts will not like it and they will lose that account.
Merchants can tell their clients that their accountant recommended factoring to improve cash flow. They can call their client and say:
“My accountant told me to look at factoring. Do you all offer that?”
This question is more of an indirect approach and less threatening to your customer. If they do not want to factor, they will feel less pressured since it was your accountant’s idea and may just say no.
Chance are very high that your customer is already factoring for other clients like your business and your business is not the first one they are would factor.
Extending merchant cash advance terms
Some final options include calling the merchant cash advance companies and asking for longer terms. This is less desirable because it means that you will not be fulfilling the contract terms as originally agreed. Therefore, the merchant cash advance company does not have to agree to longer terms and can consider doing so a default.
Longer term merchant cash advances are not easy to get. The entire risk model on which it works is based on short term financing with the customer. Their risk analysis shows that past due accounts and charge off’s increase a lot if the term is over 1 year.
Funders that do merchant cash advances do not want a long term relationship with their clients for one funding. They want renewals and also repeat business but not a long term with each transaction.
This is especially true if the merchant already has one cash advance. For merchants that already have one cash advance, merchant cash advance companies are reluctant to offer a longer term on any new advance.
The amount of monthly deposits is probably the biggest factor in being approved for a business cash advance. However there are many factors that decide merchant cash advance qualifications and guidelines. How do you qualify? Read the factors below to learn if you qualify, and for how much.
What are the biggest factors qualifying factors for a cash advance?
The biggest qualifying factors are total monthly deposits, time in business, credit, cash flow and many more profile characteristics. Applicants want to know in advance: Will my business qualify for a business loan ?
Increase your chance of getting business funding greatly by knowing ahead of time what merchant cash advance qualification and guidelines typically are.
We specialize in identifying which mca programs their business will qualify for. While these are not business loan approval secrets, they give you a very good idea if your business will qualify and for how much.
Apply below to find out how much your business will qualify for. You can also complete the application form and input contact info for a review over the phone.
Get an approval today for the best program for you. Apply now below:
500 + bureau score.
Many programs have a minimum credit score requirement of 500. Some programs require a credit score of 525. Other programs either do not have a credit bureau score requirement, or have a 550 minimum.
51% + Ownership
Many MCA Merchant Cash Advance programs and lenders require at least 51% ownership to close cash advance funding or other loans. Another requirement under some programs is to have any owner with 25% or more ownership listed on the application and also be a signer at closing.
Minority ownership means any owner with less than 50% ownership. This can also mean an owner that has between 1% and 49% ownership in a business or enterprise. Another option some lenders offer is to approve and close financing with owners who are less than 50% owners. However, this is not the norm and also rare and hard to find.
6 months time in business
Many lenders and funders have a minimum time in business requirement of 6 months. Others lenders that have more than a 6 month requirement have a 12 month, or 1 year time in business requirement.
Less than 6 months time in business
Another main minimum requirement is 3 months time in business by some lenders. Some lenders and mca merchant cash advance companies do not have a minimum time in business requirement but need at least 2 months proof of business income, or 2 months proof of revenue. These are considered start up businesses. Find more information on start up businesses here.
$10,000 or more per month in deposits
A high percentage of funders require the merchant to have a minimum of $10,000 or more per month in deposits. Some merchant cash advance companies offer funding programs that require only $5,000 or $7,500 per month minimum deposits. However it is harder to find mca merchant cash advance companies that offer funding with the business depositing less than $10,000 per month. We can place your business in programs that only require $5,000 to $7,500 + per month in deposits.
5 Overdrafts or NSF’s or less per month
Another frequent requirement is for the business to have no more than 5 Overdraft or NSF occurrence items per month. In 2017, some MCA Merchant cash advance companies began to offer programs with 7 or 8 Overdrafts or NSF occurrences per month allowed, but this is also not common.
Less than 5 Deposits per month
Most funders require 5 or more deposits per month. A few require less, such as 3 or 4, but the majority still require 5. Merchants call in and complain that they were denied for too few deposits even though they had 5 or more deposits per month. How can that happen? To find out the answer, we need to look at what lenders and mca merchant advance companies consider a “deposit”
What is the definition of deposits per month?
A source of a deposit is from revenue the business has generated from sales and true business operations. The following is a list of deposits that are not considered business deposits:
1) Small dollar amounts such as less than $100. This dollar figure can be higher, even $200 or $300 and funders may not consider that deposit because the dollar amount is too low.
2) Transfers from savings accounts or other accounts are also not considered deposits. The reason for this is that the funder does not know if the original source of those transfers are from real business revenue.
3) Credits, rebates and other non revenue deposits. Many times, businesses will receive small credits and rebates from other merchants that are not true revenue and are not considered such by lenders.
No restricted industries
Most mca merchant cash advance companies have industries that they will
not lend to and restrict funding to. You can ask in advance if your industry is one of those types of businesses they will not fund. For more information see a list of restricted industries here.
Many of the criteria listed above are minimum criteria. Many lenders and merchant cash advance companies list a minimum criteria but may still decline the merchant even if the company applying meets that criteria.
In their analysis, if your company profile meets merchant cash advance qualifications and guidelines criteria, they will consider the request, but might still not approve it.
If you have questions or need assistance to find out if you will qualify, call us for complimentary assistance. We have more resources that can be offered in kind to see if you will qualify.
Join thousands of business owners who are today free from merchant cash advances. The livelihood of their business was in danger. They needed to escape from mca merchant cash advances. Choose from several options. Get your life back. Together, you will get you the best merchant cash advance relief program for your business. Smallbusinessloansdepot, the first choice for safe merchant cash advance consolidation. Apply now. Complete the secure Docusign >>15 Second Application now.<<
Or call us at Tel: 1-919-771-4177. Escape from MCA merchant cash advances here.
Pick your escape from MCA merchant cash advances.
Permanent relief from your mca merchant cash advance problem:
1) Call the merchant cash advance companies and negotiate a solution.
Tell them the pressure on your cash flow has been far greater than you thought and ask if the terms can be renegotiated. If the Merchant Cash Advance company agrees, they normally lower the daily or weekly payment and the term is extended.
2) Try to qualify for a different loan to payoff the merchant cash advances.
Options are an asset based loan such a loan against real estate. There are other loans that may be able to help business cash flow such as Factoring.
Factoring helps you get money owed to you much sooner.
If you cannot get one of these loans and the time left on your advances is only 2 or 3 months, another option is a bank statement loan. If you can get approved for
6 to 10 month funding that pays off advances you only have 2 to 3 months
left on, then you may be able to extend the term of your existing debt by 7 or 8 months. This can cut your daily payment by 75%.
3) Ask for a pause in your merchant cash advance payments.
This works best if your business only needs a pause in the payments. In most cases, the mca merchant ash advance companies will stop the payments completely for 1 or 2 weeks. If you know your business needs much more relief than this, you probably should not request this option as it will not be enough to solve your problem. If you request temporary relief, then ask for a permanent reduction right away.
In many cases, your payment may be reduced by 25% to 50%, but often only for 30 to 60 days. Some funders give merchants more time to pay it back or a permanent reduction in the payments. First decide if lower payments are enough. Will you be able to handle lower payments permanently?
Do cash flow calculations to determine if your business can afford the payments, even if they are lowered as much as 50%.
4) Find a traditional consolidation program
Such a program will payoff the other advances at closing. This is not a program that advertises consolidation but then sells another cash advance. If you can qualify for such a consolidation program, it will often be the best choice. The terms will vary greatly depending on the strength or weakness of your profile. The biggest advantage of these programs is that they almost always extend the term and lower your payment a lot at the same time. Break away from merchant cash advances!
More drastic measures
5) Hiring and involving an Attorney.
This option can be considered if you have tried your best to work with the merchant cash advance companies and they did not offer a solution that would allow you to stay in business. If this happens, consulting an attorney and considering your options may be in your best interest. It could be that having an attorney contact the merchant cash advance companies to request terms that are sustainable for your business brings you a better offer. Threats of non payment or other harsh actions may not be required.
This may be a final but viable option. In the event you cannot work anything out and you will go out of business, bankruptcy may be the best choice. Contact a bankruptcy attorney to discuss this. If you have signed a COJ, certificate of Judgement, then make your attorney aware the merchant cash advance company has a COJ from you. A certificate of Judgement may allow a creditor to immediately access and also debit from any bank account you have an any bank. Bankruptcy may be able to prevent this and allow your true escape from mca merchant cash advances.
Choose one of these options and start on your path to escape from mca merchant cash advances. Break out and get away from merchant cash advances today!