A Merchant Cash Advance (MCA) is financing product that has been gaining popularity with small business owners. It provides business owners easy access to financing without having the need to heavily collateralize a loan. In fact, an MCA is not a loan at all.
So, how does it work?
You sell your future account receivables at a discount for immediate financing. MFS Global generally purchases receivables at 25-30% discount.
Here’s an example – you sell $10,000 of future receivables for $7,500 (25% discount) in immediate financing.
Stacking is a recent phenomenon in the Merchant Cash Advance industry. When a business owner sells their receivables to several different buyers at the same time or having more than one merchant cash advance at a time.
Because of the constant need for financing merchants have resorted to stacking merchant cash advances. Although it’s understandable why that choice would be made, there are several serious problems with doing that.
Overextension– when stacking the percentage of outgoing daily receipts increases. Every time you get funded your daily payments increase – usually by a lot. This kills the free cash flow of your business and makes it virtually impossible to operate without constantly getting more and more merchant cash advances or in worse drive you out of business.
Diversion – operating day-to-day business activities becomes much more difficult because you are constantly applying for more financing. Suddenly you’re no longer running the business but filling out applications and gathering financial documentation just so you can get more financing.
Legality – Many merchant cash advance contracts have clauses preventing you from selling your receivables to more than one party at a time. Stacking might put you in breach of contract.
Why stack? – Many businesses are not benefiting as much as needed from their initial merchant cash advance and need more money every few months.
The solution – MFS Global recognized this alarming trend in the industry and developed the Guaranteed Funding Program to address many of these issues.
Guaranteed Funding Program Highlights:
With the Guaranteed Funding Program you no longer need to stack merchant cash advances. You have constant access to financing, predictable and steady payments and no need to constantly apply for more money.Learn More
The Guaranteed Funding Program is meant for businesses that are expanding and growing. Most common uses for our program is marketing, inventory, payroll for new hires or rent for new space. If your business is growing and expanding you can benefit greatly from the Guaranteed Funding Program. This program is not a good fit for businesses that are having difficulty meeting their current obligations, burdened with a lot of debt – in many cases a Merchant Cash Advance may hinder more than help.
Does your business qualify? Although many of our competitors restrict themselves to certain industries or business owners with certain credit scores, we have no such restrictions.
We are able to approve more businesses and more business owners because we don’t use outdated and irrelevant credit scoring risk assessment models. We use a proprietary Cash flow model to assess the health of your businessLearn More
We don’t charge any “upfront” application or startup fees. We only charge a simple flat $195 disbursement fee. Initial ACH setup fee is waived.
The following fees are charged if your account is Late, Defaulted or Terminated:
It is always best to have an open line of communication with your concierge. If there are any unexpected circumstances, contact us. Together we will find a mutually acceptable solution.Contact Us
Our team has the experience and the mindset that you would want to partner with. Our key executives developed the Guaranteed Funding Program over several exhausting months. They had daily meetings, surveys from small business owners coupled with their combined personal experiences in the finance world and backgrounds in economics and risk and credit modeling the Guaranteed Funding Program was born.
While most of our competitors only have a 3-month or a 6-month program, ours is 14 months long. This means that we have every incentive possible for the long-term viability of your company. Our entire corporate mindset is focused on the success of our clients and the financial health of their business. That’s why we assign every client a Dedicated Business Concierge.
These are some of the many different benefits:
We are here to help you succeed.Contact Us