What Counts as 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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Other loan types that may be considered an existing position by lenders:

  1. Daily repayment advances such as bank statement loans.
  2. Weekly payment loans
  3. Monthly payments loans from certain lenders.

Apply for these Max Approval programs with existing positions

Multiple existing positions O.K. 
No penalty for other loans that are not mca’s.

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

1. Installment loans:

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

Example:  Monthly payment personal loans, car loans and finance company loans are almost never included in the approval process.

2. Monthly repayment loans

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

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

3. Secured loans

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.

Real estate loans, equipment loans, 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 payoff letter on all loans that do not have a balance.

What counts as an existing mca position?

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 loans do not count against your mca loan 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.

3rd Position Merchant Cash Advance: (Max Offers)

The most money on a 3rd position merchant cash advance is what you need, and fast?

      • Apply here for:
    • The most aggressive, highest 3rd position offers
    • Longest terms
    • Fast funding, including same day funding

We specialize in these offers. 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 funding quickly!

Apply Securely Now

Call 919-771-4177 for more info.


 

F.A.Q.’s, Frequently asked questions on getting a 3rd position

How much can we get on a third position cash advance?

You will get the highest offer that your business cash flow 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 3rd position advances can go up to 1 year, though most are 6 months. The longest term depends on the balances of your current advances, your business cash flow 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.

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Call 919-771-4177 for more info.

How to get a 3rd position merchant cash advance:

        1. Decide how much money your business needs.  Then calculate how much the business can afford to pay each day.   For a 3rd position advance, figure out how much is the maximum you can afford per day and the total your business can pay for cash advances overall.
        2. Apply for the cash advance program that best matches your business cash flow.   Review your current loans and know what counts as an existing mca position.
        3. If approved, review all closing documentation and requirements.   If needed have a specialist review the contracts and return completed contracts and all documentation for funding.   Complete merchant funding call with the funder. Funds are deposited into your business checking account the same day or next day.
Does your business need another cash advance?

2nd Position Cash Advances: The Highest Offers


How to get a 2nd position merchant cash advance:

Get a second position advance fast

Apply here for:

Apply Securely Now

 Call 919-771-4177 for more info.

  • Highest offers on: 2nd 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!

  1. Step 1:  Review your business funding needs and cash flow.   How much more can your business afford to repay per day and per week?
  2. 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.
  3. Step 3:  Select the funders with the products that best match your businesses needs as well as credit and time in business.
Pick the funders with the second position options that best match your business needs along with 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.

    Contact the best 2nd position cash advance options

  • 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.

    When approved, look at the daily or weekly repayment and the mca loan contract.

  • Step 6:  Complete the transaction and receive funds into your business checking account.
    Small Business Loans Depot

Get a 2nd position mca merchant cash advance and lower your payments. *if qualified.

A 3rd position mca cash advance if your business can handle and needs more funds than a second position is available.

Apply Securely Now

 Call 919-771-4177 for more info.

Frequently asked questions FAQ: On 2nd position merchant cash advances.

 

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 advance payment into their decision for how much and long to approve another advance 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.