Tag: position

Position of debt for a lien holder is important.

If a customer defaults, a lender may not recover funds if they have a junior lien status.

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What Counts as an Existing MCA Position?

Post author By Will Sanio
Post date November 5, 2020

existing-mca-position — What is an existing mca position?

When applying for a merchant cash advance, funding sources look at the current loans you have to see if you already have an existing advance. But what counts as an existing mca position?

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What is an existing mca cash advance position?

Data Secure 15 Second Info Form Here.

Call 919-771-4177 for more info.

Other funding types that may be considered an existing position by lenders:

Daily repayment advances such as
bank statement loans

Weekly payment financing.

Monthly payments loans from certain lenders.

Programs that accept existing positions

Multiple existing positions O.K.

No penalty for other debts that are not mca’s.

Business funding that do NOT count as an existing mca position.

1. Installment:

Monthly or weekly installment transactions should not count as an existing position when applying for a cash advance.

Example:Monthly payments for car and personal loans are almost never included in the approval process.

2. Monthly repayment:

Anything that is repaid monthly is almost always considered a separate type of financing.

Most installment loans also have monthly repayment, but not all. These will not be counted against your existing debt on an mca application.

3. Secured:

Secured loans are not considered in your businesses’ ability to repay a short term unsecured advance. It is a different type of debt and not calculated in the analysis.

Existing real estate and equipment debt, as well as accounts receivable financing are not counted against you. As a result, they will not affect your ability to get an advance, nor affect the amount of the advance.

4. Unsecured Revolving Lines

Unsecured lines such as credit cards and personal lines of credit are not included. You can have multiple credit cards or lines of credit because they don’t affect your ability to get an advance against future receivables.

Different terms between the two are a main reason they are separated because unsecured revolving lines usually remain open for years.

Short term advances are paid off in 3 to 9 months. Underwriting knows that you will continue to have that unsecured debt with a minimal monthly payment that is low compared to the advance.

Make sure the new lender is not counting loans or advances you have already paid off. Provide them with a payoff letter on all previous debts that no longer have a balance but may still show one on your credit bureau.

FAQ: Frequently asked Questions on an existing mca position.

What is an existing mca position?

An existing mca position is business financing that is considered the same type as a cash advance. This is usually any financing with a daily or weekly payment. Some monthly payment options may count as an advance, depending on who the lender is.

What business loans count against me when applying for an mca ?

Any business financing that has a once per business day repayment is almost always considered an existing cash advance position.

Do other monthly payment loans count against me?

Other monthly payment business debt does not count against your mca application.

Why does it matter if my business already has cash advances?

New lenders need to know if your business will have the cash flow to pay the new debt. They also consider if you are a habitual cash advance borrower. Lenders probably consider you may take another advance behind theirs.

Conclusion

Short term daily, weekly and sometimes monthly business financing do count as an existing mca position and therefore, your business may not be approved or for lower amounts.

Know the types of loans you already have when applying for cash advances and which one will count against. This will help you understand which type of business loan to apply for and what to expect.

Tags mca, position

Articles

3rd Position Cash Advance: Maximum Offers

Post author By Will Sanio
Post date May 16, 2018

Video Description: How to get a third position mca cash advance

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Want to just watch the Video only? Watch above or go to the Video only page here

How to get a third MCA Cash Advance

Supply: Last 3 months business bank statements

Tool: Desktop, laptop, tablet or phone

STEP 1: Check if you can afford another Daily payment.

Today’s Video, how to get a 3rd position MCA Cash Advance. Start the process anytime by Tapping apply on the Bottom right of this Screen, or Tapping on the End screen of this Video, or on the Apply Button on the Webpage.

Make sure you can afford another Daily payment. The Lender will be checking your profile closely.

Let’s review an Example: Multiply a $10,000 Offer amount times a 1.35 Rate Factor. There are 21 Payment Days most Months. If your offer Amount is for 8 Months, that’s 21 times 8 = 168 Payment Days. Take the $13,500 Total Repay and divide it by 168 Payment Days. That’s $80.36 Per payment day for every $10,000.

How to calculate the cost of an mca cash advance.

VIDEO CLIP below: Calculate MCA Affordability: 17 Seconds – 46 Seconds in Clip below.

Review your Last 3 Months Business Bank Statements, or 4 Months in States that require 4 Months like California. Your total Monthly Deposits should have increased or stayed the same.

Total Monthly Deposits that have been increasing in the last 3 months may bring a higher offer amount. Decreasing may bring a lower offer amount.

VIDEO CLIP below: Check Total Monthly Deposits: 52 Seconds – 63 Seconds in Clip below.

Average Daily Balance:That is the average balance per day for the month.

TIP:

You want your Average Daily Balance to be at least $750, but better $1000 or higher.

What is the Average Daily Balance in your account?

VIDEO CLIP below: Review Average Daily Balance 63 Seconds – 74 Seconds in Clip below.

TIP:

Overdrafts or NSF’s: You should not have more than 5 to 7 Overdrafts or NSF’s in any 1 Month, or it is more likely you will be declined.
If you have more, it is better to wait until you get your next statement and those are gone.

NSF’s and Overdrafts: How many are too many?

VIDEO CLIP below: Overdrafts or NSF’s 73 Seconds – 87 Seconds in Clip below.

STEP 2: Match with a Lender

Match with a lender that fits your business type.

TIP:

Talk to a Representative first, that often avoids unnecessary declines.

Match with a lender that makes aggressive third positions cash advance mca’s.

STEP 3: Apply.

If approved, request the closing docs.

STEP 4: Close

Get a Copy of your Driver’s License, Voided Business Check and Proof of Ownership. Next, Close. Review the Contracts, and if you’re satisfied, complete the contracts and expect funding into your Account in 2 to 4 hours.

Approval then Closing: What are the next steps?

VIDEO CLIP below: Approval and Closing 94 Seconds – 111 Seconds in Clip below.

TIP:

If you have repayment problems with 3 Advances, communicate with the Lenders immediately and consistently[ desert wind blowing ] to protect your business’ ability to borrow again in the future [ wind continues ]

What if you have repayment problems with 3 Advances?

VIDEO CLIP below: Repayment problems with 3 Advances 110 Seconds – 119 Seconds in Clip below.

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Show Video Transcript

how to get a third position MCA Cash Advance

In minutes and seconds.
0:17 Calculate if you can afford a third daily payment
0:52 Total Monthly Deposits: increasing or decreasing
1:03 Average Daily Balance: Minimum amount needed
1:13 Overdrafts or NSF’s: How many can I have?
1:34 Approval and Closing: What do I need?
1:50 How to avoid repayment problems: Multiple Advances
0:25

[ city street sounds ][ introduction sound effect ] Will Sanio, SmallBusinessLoansDepot.com. Today’s Video, how to get a 3rd position MCA Cash Advance.

Start the process anytime by tapping apply on the bottom right of this screen, or tapping on the end screen of this video, or on the apply button on the webpage.

Make sure you can afford a third daily payment, The Lender will be checking your profile closely. [ woman giggling ].

Let’s review an example. Multiply a $10,000 offer amount times a 1.35 rate factor. There are 21 payment days most months. If your Offer is for 8 Months, that’s 21 times 8 = 168 payment days.

Take the $13,500 total repay and divide it by 168 payment days.

That’s $80.36 Per payment day for every $10,000.

Review your last 3 months business bank statements, or 4 Months in States that require 4 Months like California. [ ocean surf sound ]

Your total monthly deposits should have increased or stayed the same. Total monthly deposits that have been increasing in the last 3 months may bring a higher offer amount. Decreasing may bring a lower offer amount.

Average Daily Balance: That is the average balance per day for the month. You want your average daily balance to be at least $750, but better $1000 or higher.

Overdrafts or NSF’s. You should not have more than 5 to 7 overdrafts or NSF’s in any 1 Month, or it is more likely you will be declined. If you have more, it is better to wait until you get your next statement and those are gone.

Match with a Lender that fits your business type. Talk to a representative first, that often avoids unnecessary declines.

Next, apply. If approved, request the closing docs.

Get a copy of your driver’s license, voided business check and proof of ownership.

Next, close. Review the contracts, and if you’re satisfied, complete the contracts and expect funding into your account in 2 to 4 hours.

If you have repayment problems with 3 advances, communicate with the lenders immediately and consistently to protect your business’ ability to borrow again in the future.

But how do you get an initial, or first advance? Go to how to get an mca cash advance here for the steps.

We will help you structure your existing business cash flow as well to insure your payments can safely be made. Apply below now to get your offer and cash quickly!

Call 919-771-4177 for more info.

F.A.Q.’s, Frequently asked questions

How much can we get on a 3rd position MCA?

You will get the highest offer that your business budget can handle which will be reviewed through the bank statements. If the balance on one of your other advances is low enough, it can be paid off to get an ever higher offer.

What is the longest term we can get?

Payments and terms on a 3rd funding can go up to 1 year, though most are 6 months. The longest term depends on the balances of your current MCA’s, your available funds and the ability to handle the new payment.

How fast can I get funded?

Submit your application and last three months statements in the morning and it is possible to be funded the same day.

Tags 3rd, position, third

Articles

2nd Position: How To Get Another MCA Cash Advance: Video

Post author By Will Sanio
Post date April 14, 2018

Video Description: How to get another second position mcas cash advance. Get approved and how to avoid declines. Information on calculating daily payments and terms.

Apply here for another Position

START NOW

Call 919-771-4177 for more info.

How to get Another 2nd MCA Cash Advance

Supply: Last 3 months business bank statements

Tool: Desktop, laptop, tablet or phone

STEP 1: Check if you can afford another Daily payment.

Will Sanio, SmallBusinessLoansDepot.com. Today’s topic, how to get another MCA Cash Advance, also known as a second position. Start the process anytime by Tapping apply on the Bottom right of this Screen, or Tapping on the End screen of this Video, or on the Apply Button on the Webpage.

Check if you can afford another Daily payment, because the Lender will check. First calculate an estimate of what your new daily Cash Advance Payment will be.

Let’s take an Example: Multiply a $10,000 offer amount times a 1.4 Rate Factor. There are 21 Payment Days most Months. If your offer Amount is for 7 Months, that’s 21 times 7 = 147 Payment Days. Take the $14,000 Total Repay and divide it by 147. That Equals $95.23 Per payment day for every $10,000.

VIDEO CLIP below: Calculate MCA Affordability: 23 Seconds – 53 Seconds in Clip below.

Review your Last 3 Months Business Bank Statements, or 4 Months in States that require 4 Months like California. [ ocean surf sound ]. Your total Monthly Deposits should have increased or stayed the same.

Average Daily Balance: That is the average balance per day for the Month.

TIP:

You want your Average Daily Balance to be at least $750, but better $1000 or higher.

VIDEO CLIP below: Check Average Daily Balance: 62 Seconds – 72 Seconds in Clip below.

TIP:

Overdrafts or NSF’s: You should not have more than 5 to 7 Overdrafts or NSF”s in any 1 Month, or it is more likely you will be declined.
If you have more, it is better to wait until you get your next statement and those are gone.

VIDEO CLIP below: Review Overdrafts and NSF’s 72 Seconds – 86 Seconds in Clip below.

STEP 2: Match with a Lender

Match with a lender that fits your business type.

TIP:

Talk to a Representative first, that often avoids unnecessary declines.

Match with a lender that makes loans against equipment

STEP 3: Apply.

If approved, request the closing docs.

STEP 4: Close

VIDEO CLIP below: Approval and Closing 86 Seconds – 102 Seconds in Clip below.

TIP:

If you have repayment problems with 2 Advances, communicate with the Lenders immediately and consistently[ desert wind blowing ] to protect your business’ ability to borrow again in the future [ wind continues ]

What if you have repayment problems with 2 Advances?

VIDEO CLIP below: Repayment problems with 2 Advances 102 Seconds – 111 Seconds in Clip below.

START NOW

Show Video Transcript

How to get another 2nd position MCA Cash Advance

In minutes and seconds.
0:23 Example: Calculate MCA Affordability
1:02 Average Daily Balance
1:12 Overdrafts and NSF’s
1:26 Approval and Closing
1:42 repayment problems with 2 Advances

[ city street sounds ], [ introduction sound effect ] Will Sanio, SmallBusinessLoansDepot.com, today’s topic, how to get another MCA Cash Advance, also known as a second position.

Start the process anytime by Tapping apply on the Bottom right of this Screen, or Tapping on the End screen of this Video, or on the Apply Button on the Webpage.

Check if you can afford another Daily payment, because the Lender will check. [ woman giggling ] First calculate an estimate of what your new daily Cash Advance Payment will be. Let’s take an example: Multiply a $10,000 offer amount times a 1.4 Rate Factor.

There are 21 Payment Days most Months. If your Offer Amount is for 7 Months, that’s 21 times 7 = 147 Payment Days. Take the $14,000 Total Repay and divide it by 147. That Equals $95.23 Per Payment Day for every $10,000.

Review your Last 3 Months Business Bank Statements, or 4 Months in States that require 4 Months like California. [ ocean surf sound ]

Your total Monthly Deposits should have increased or stayed the same.

Average Daily Balance: That is the average balance per day for the Month. You want your Average Daily Balance to be at least $750, but better $1000 or higher.

Overdrafts or NSF’s. You should not have more than 5 to 7 Overdrafts or NSF’s in any 1 Month, or it is more likely you will be declined. If you have more, it is better to wait until you get your next statement and those are gone.

Next, apply, if approved, request the closing docs. Get a Copy of your Driver’s License, Voided Business Check and Proof of Ownership.

Next, Close. Review the Contracts, and if you’re satisfied, complete the contracts and expect funding into your Account in 2 to 4 hours.

If you have repayment problems with 2 Advances, communicate with the Lenders immediately and consistently to protect your business’ ability to borrow again in the future. [ desert wind blowing ]

Highest offers on: second positions
The Longest Terms
Quick approvals and funding

We specialize in these offers. We will help you structure your existing cash flow as well to insure your payments can safely be made. Apply below now to get your offer and funding quickly!

Interested in an MCA for the first time? Go to: How to get an MCA Cash Advance.

A Want to just watch the Video? Go to the Additional 2nd Position MCA Cash Advance Video Page here

Or Get a 3rd position mca cash advance if your business can handle and needs more funds.

Frequently asked questions:

What is a 2nd position cash advance?

When a business takes out a cash advance while having an existing one they are paying on. The business will then have a 2nd advance that is in position behind their first one and make payments on two. The second company considers the existing payment into their decision for how much and long to approve another mca for you.

How can I get a second position for more money?

Show more cash flow through other checking accounts or financial statements. Proof that you will soon payoff other existing debt is another way. Your current first position cash advance may be paid off if the balance is low enough. This allows for even more money on top of the amount to payoff the 1st position.

Can I get a lower payment than I have now?

Ask for the lowest payment when applying so that the longest term offer will be made, and thereby lowest payment. Terms as long as 18 and up to 60 months are available to get the payment down the most.

How important is credit?

Credit is a minor part of the approval. The strength of company cash flow and ability to make the new payment are the most important qualifiers.

Tags advance, cash, position, second