couple receiving merchant cash advance

How to Reconcile a Merchant Cash Advance

A merchant cash advance (MCA) provides a business with working capital that can be used in a variety of ways. Defaulting on the repayment puts both your business and personal assets at risk, however, and may force you to file for bankruptcy. Let’s take a look at how you can reconcile a merchant cash advance. […]

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Exchange of financial documents

What Is a Business Debt Consolidation Loan?

Business owners face numerous challenges, such as revenue shortfalls that can make it difficult to cover expenses and pay business debts. While some small businesses turn to merchant cash advances, a better option may be a debt consolidation loan. In short, a consolidation loan may help you pay off your small business debt by allowing […]

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man reviewing confession of judgment

How Can My Startup Obtain Working Capital?

Starting a business can be exciting and lucrative as long as you have funding to kickstart your business. One way to obtain working capital is by taking a merchant cash advance. Unlike a traditional business loan, you don’t need an established business history or even good credit to obtain an MCA, but there are risks.  […]

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Exchange of financial documents

Weighing the Risks of Merchant Cash Advances

Small businesses that lack access to traditional sources of financing such as business loans can benefit from alternative funding products like a merchant cash advance (MCA). There are several risks to merchant cash advances, not the least of which is an event of default that could result in the business closing.  If you need assistance […]

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MCA holdback

In Focus: MCA Holdbacks

Is your small business considering a merchant cash advance (MCA)? If so, it is crucial to understand the term holdback amount and how it differs from the interest rate. In the event of a downturn in business, you may default on the MCA agreement, placing both your business and personal assets at risk. Let’s take […]

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business owner reviewing MCA

Merchant Cash Advances and UCC-1 Lien Notice Filings

When you obtain a merchant cash advance (MCA), the funder will typically prepare and record a UCC-1 filing, creating a lien against the business entity and certain assets (e.g. equipment, vehicles, property). If your business defaults on the cash advance, both your assets and business relationships may be in jeopardy. Here’s how What is a […]

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merchant cash advance for small business

Is a Merchant Cash Advance Right for My Small Business?

If your small to mid-sized business needs working capital but lacks access to traditional sources of financing (e.g. business loan), a merchant cash advance (MCA) may be an option. This alternative funding product is not a loan, however, generally unregulated, and typically comes with strict repayment terms that could easily result in a default Ultimately, […]

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yes lender

Yes Lender Raises MCA Stake With Tech Acquisition

Yes Lender recently announced the acquisition of FinTech startup Edge Funder. The alternative finance lender said the deal would give it an edge in funding small businesses. However, the transaction is also a reflection of the consolidation in the merchant cash advance (MCA) marketplace.  Whether Yes Lender will be able to capitalize on Edge Funder’s […]

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reconciliation clause

What Is a Reconciliation Clause?

Small businesses that need working capital often look to alternative sources of funding, such as a merchant cash advance (MCA). In this arrangement, the MCA provider advances funds in exchange for a percentage of the business’s daily credit card receipt.  Because an MCA is a purchase and sale agreement, it is not considered a loan […]

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merchant cash advance

Merchant Cash Advance v. ACH Advance

Small businesses and startups that don’t qualify for traditional bank loans have alternative funding options, such as a merchant cash advance and an ACH advance. While both products advance funds for essential business operations, there are differences between them. How a Merchant Cash Advance Works A merchant cash advance (MCA) is not a loan, but […]

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