Ten questions merchants ask about MCA, answered plainly

Merchants ask the same questions on almost every call. Clear, honest answers build trust.

The questions

1. 1How fast can I get funded? It depends on the funder and the file. Clean files move faster.
2. 2How much can I get? The funder decides, mostly from your deposits and existing advances.
3. 3What will it cost? The funder sets a factor rate. You see the total payback in the offer.
4. 4Is this a loan? In most structures it is a purchase of future receivables. Read the contract.
5. 5How do payments work? A share of receipts or a fixed daily or weekly debit.
6. 6What if sales drop? Many contracts allow reconciliation. Ask the funder how it works.
7. 7Do you check credit? It depends on the funder.
8. 8What documents do you need? Usually an application and recent bank statements.
9. 9Can I pay early? Ask the funder; terms vary.
10. 10Can I get more later? Renewals are common once part of the advance is paid down.

Related

Factor rates explained and holdback and remittance.