Merchant Cash Advance Refinance into Monthly Payment

Merchant Cash Advance Refinance into Monthly Payment is updated for 2023. We now have 2 business term loan refinancing options as well as 4 other strategies we use to reduce High Interest MCA Rates and Payments.

If you are a business owner struggling with cash flow because you took out a Merchant Cash Advance or other expensive Short Term Business Debt, this is the best place to start to solve your cash flow problems and have a plan to eventually have an SBA business loan or other business loan financing at reasonable interest rates and terms.

Refinance Your High-Rate MCA’s, Revenue or Cash Flow Loans Into a Monthly Payment

We offer 2 Main Financing Programs: $300k min. revenue & > 600 FICO or $1mil min. revenue & No min FICO
We have other Programs that may reduce MCA payments 35% if you have $200k minimum revenue

MCA Refinance Case Study #1:
$2,560,000 (5 MCAs) to MONTHLY PAYMENT & Emergency Cash

MCA Refinance Case Study #2:

$230,000 in Advances (6 MCAs) to ONE MONTHLY PAYMENT

(All Terms vary on situation. Credit Profile, Cashflow, Collateral AR, etc)

*Results will vary based on underwriting, credit, and other factors. You may not qualify for any amount.

MCA Refinance Case Study #1: $2,560,000 (5 MCAs) to

MONTHLY PAYMENT & Emergency Cash

MONTHLY DEBT SERVICE SAVINGS / INCREASE IN MONTHLY FREE CASH FLOW: $514, 297

Summary: Client had $2,560,000 in 5 MCA’s, considered restructuring instead of refinance. Cash flow was crushed by MCA’s payments totaling $671,000, and they needed $500k in cash to make payroll in 2 days. Credit Score was good at 750+. Company was making $26 million in revenue

As a strategy , we found them $500k in a new MCA to fund payroll in 2 days for a total of $3,060,000.

$4,000, 000 New 3-year Term Loan to refinance $3 mil in MCA & added $1mil in working capital to prevent the need for future MCA’s

Total Active Merchant Cash Advances: 5
Total Balance of Merchant Cash Advances: $3,060,000. ($2,560,000 +/- + New MCA for emergency cash payroll $500,000)
Total MCA Payments Each Month (aggregate of daily / weekly payments): $671,000
New Total Payment From Refinance & New Working Capital (ONCE PER MONTH): $156,000
Free Cash Flow Added Monthly to the Business: $515,000
Total New Loan: $4,000,000 (business received $1,000,000 in working capital)
Loan Term: 36 months
Loan Amortization (Payment Schedule): 36 months

MCA Refinance Case Study #2:
$230,000 in Advances (6 MCAs) to ONE MONTHLY PAYMENT

MONTHLY DEBT SERVICE SAVINGS / INCREASE IN MONTHLY FREE CASH FLOW: $34,332

Total Active Merchant Cash Advances: 6
Total Balance of Merchant Cash Advances: $230,000 +/-
Total MCA Payments Each Month (aggregate of daily / weekly payments): $48,956
New Total Payment From Refinance & New Working Capital (ONCE PER MONTH): $14,624
Free Cash Flow Added Monthly to the Business: $34,332
Total New Loan: $275,000 (business received $30,000 in working capital after closing fees)
Loan Term: 12 months, renewable for another 12
Loan Amortization (Payment Schedule): 24 months

Merchant Cash Advance Refinance Frequently Asked Questions (FAQ)

WHAT ARE THE BASIC REQUIREMENTS TO REFINANCE an MCA?

Program #1: Credit must be above a 600 FICO score

No recent bankruptcies or repossessions in the last 12 months
Business must be generating at least a minimum of 300k annually and have at least 1 current MCA
MCA buyout loans can be secured (with assets) or unsecured (no assets) depending on the situation
At least 1 year in business
If additional capital is requested, the MCA buyout then the client must have accounts receivable, contracts or collateral in some cases. (We need to show that you can support payments if additional funds are disbursed)

Program #2:

Businesses with $1,000,000 or more in gross revenue
Merchant Cash Advance total balance of all advances should be at least $150,000
Must have Accounts Receivable on their balance sheet and/or subscription cash flow agreements with their customers; business assets such as cash, stock, inventories or real estate help with qualifications.

ARE YOU LENDING RIGHT NOW?

Yes.

DO YOU PROVIDE WORKING CAPITAL TOO?

Yes. We provide working capital at closing in addition to the required Merchant Cash Advance refinance.

WHAT IF MY BUSINESS HAS MORE THAN ONE MERCHANT CASH ADVANCE?

There technically is no limit to the number of Merchant Cash Advance “stacks” or multiple simultaneous advances that we will

refinance. it gets difficult after 5 MCA’s and with multiple defaults.

The lender will pay off all Merchant Cash Advance positions and put it all into a ONCE-PER-MONTH PAYMENT 24 to 36-month

amortized term loan.

ARE THERE OPTIONS AVAILABLE FOR LESS THAN $100,000 IN MCA’S AND REVENUES LESS THAN $1 Million

We have other options, but there are several variables. We can often reduce your payments by 35%, but it may not be a 2 to 3 year term.

WHAT IF MY BUSINESS HAS MISSED, ALTERED OR DEFAULTED PAYMENT?

This is the specific situation that we are here to help and alleviate. Businesses with 3 or more merchant cash advances will typically and eventually default when they cannot get a new advance to pay the previous advances. We are here to help businesses that made financing decisions or had to take Merchant Cash Advances because there were no other loan products available.

WHAT IF MY BUSINESS WAS REJECTED BY THE SBA OR THEIR BANK?

Our goal is to help each client get to the lowest coast financing possible. If you have MCA’s it may be a multiple step and long-term process that we would like to help you navigate.

WHAT IF MY BUSINESS HAS AN SBA LOAN OR TAKES SBA DISASTER ASSISTANCE?

We lend to business where we are subordinated to/with the SBA or traditional bank loan. We also have SBA lenders who will refinance MCA’s if we have enough time for underwriting (30-60 days)

WHAT IF MY BUSINESS HAS AN ACCOUNTS RECEIVABLE / INVOICE FACTORING LENDER AGREEMENT IN PLACE ALREADY?

This is more than okay. We can refinance/pay-off the current factoring loan as well as the Merchant Cash Advances and roll it all into a ONE MONTHLY PAYMENT 24 to 60-month amortized term loan.

HOW DO I GET STARTED? Call (317) 589-0118 or Go to Bizfundfirst.com/schedule for a consultation

Other Information regarding Business Term Loans to help Refinance High Rate Merchant Cash Advances

12 to 60-month amortized, 12-month renewable term loan to refinance all MCA positions
Additional working capital available pending underwriting
One MONTHLY ACH loan payment
Possibly Save businesses 35% to 90% on current monthly debt service payment
21% to 29% fixed APR (equivalent to a 1.21 to 1.29 factor rate over 12 months)
Businesses must fill out application and submit requested documents to pre-qualify
Pre-qualification takes 1 to 2 business days
Term sheets issued to qualified businesses outlining proposed financing offer
5 to 12 business days to closing/funding from term sheet execution &on-site due diligence $150,000 minimum to $5,000,000+ refinance funding available
No FICO minimum for program 2. 600 FICO for Program 1
Company must have outstanding receivables (A/R) owed to them

For more information or to get started: