Real cost of MCA loans

1.3 rate factor? Notarized COJ? What do these terms even mean? And more importantly, what is the real cost to you of a Merchant Cash Advance or MCA Business Loan? MCA loans are seen as bad credit business loans and are typically 4 to 10 times more expensive than Invoice Factoring with none of the protection. The MCA ACH Loan Rule of Thumb says, whatever the MCA Rate Factor dollar amount is over the payback period, your net profit should be more. If not, at the end of that period you will be that much closer to bankruptcy. For example, ... Read More

what is merchant cash advance consolidation

Is a Merchant Cash Advance Consolidation the Answer to Your Business Cash Flow Issues? It starts with a small merchant cash advance, which leads to another and then another. All that until before you realize it, all of your business credit card sales are going towards paying off these debts. This practice of stacking merchant cash advance loans – or ACH – can quickly put your business into a downward spiral. One solution to help you get out of this cycle of business debt is a merchant cash advance consolidation. What is a Merchant Cash Advance? A business in need ... Read More

FOR IMMEDIATE RELEASE Paragon Financial Group, Inc. publishes article discussing the warning signs of a merchant cash advance market bubble. The article looks at the lack of access to small business loans and how merchant cash advance (MCA) lenders have stepped in to fill the demand. It continues to discuss the high growth in the MCA industry and dangers of MCA’s high interest rates of 60%. As stated in the article, “With the limited funding options available for U.S. small business there is an increased number of entrepreneurs using MCA’s for more than just a short-term cash crunch. Very similar to payday loans ... Read More

Paragon Financial Group, Inc. is seeing the warning signs of a merchant cash advance market bubble. Small business bank loans have dried up and are more difficult to obtain since the Great Recession of 2008. Merchant cash advance (MCA) lenders have stepped in to fill the demand and are entering the marketplace at a high rate. David Rubin, CEO of Capital Stack LLC, says a little over a year ago there were 50 MCA funders with $1.5 billion in funding and just a year later over 120 funders with 3 billion in volume. The market for these types of loans ... Read More

Is a Merchant Cash Advance

We all know small business bank loans have dried up and are extremely difficult to obtain since the Great Recession of 2008.  Small business has become increasingly desperate to find short-term cash-flow solutions. Because of their ease of obtaining and loose credit requirements, Merchant Cash Advance (MCA) & ACH lenders have stepped in and has filled the demand. These types of loans have been very profitable for the lenders. Wall Street has funneled billions of dollars into the products because of high yields in a low yield environment. As a result, new merchant cash advance lenders are cropping up almost ... Read More

  • Get Cash Today

    Best Factoring CompanyGet the Cash You Need Today

    Just fill out this quick & easy form!

  • This field is for validation purposes and should be left unchanged.
Get Cash Today
  • Quick Contact Form
  • This field is for validation purposes and should be left unchanged.

Back to Top

Best Factoring Company

Get Started Immediately