[Lendvo]

Anyone here know what the difference between their loan v. MCA product now is? I would think the loan would be a LOC or something like that but press release says "term loan."

Does anyone know if what they are now offering in the MCA v. Term loan has a real functional difference? Or perhaps the split/lockbox is structured as an MCA and the ACH program as a term loan?

Only other thought is that besides Varadero there is another credit facility still open to them but it only accepts either a loan structure or an MCA structure to be fed into it and Varadero only wants the other.

[MCAVeteran]

They used web bank for their loans that were daily achs before and always had the mca program. Their website classifies term loan as a daily ach with terms out to 18 mo and a 3 perc origination with daily repayments.

[Lendvo]

They used web bank for their loans that were daily achs before and always had the mca program. Their website classifies term loan as a daily ach with terms out to 18 mo and a 3 perc origination with daily repayments.

So they have been structuring the ACHs as loans and the splits as MCAs for at least a good while. Thanks for the info!

[MCNetwork]

Term loans have a fixed term and can only be issued by licensed lenders. MCAs have an open term because you're taking out a percentage of gross revenue. ACH MCAs are supposed to have a monthly true up to be a legitimate MCA but most funders don't do it. That's why On Deck's term loans look identical to ACH MCAs.

[AndyYSCISOdept]

The term "loan" in and of itself infers that there is an interest rate, which as we all know is not what MCA's regardless of method is not what we do.

[MCAVeteran]

"CAN Capital, Inc. makes capital available to businesses through business loans made by WebBank, member FDIC" If you sold can in the past with fixed dailys, you were selling "loans"

[MCNetwork]

Same with ARF Financial. They only do loans now.