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07-07-2017, 10:01 AM #1
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- Jul 2015
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- 168
CAN offering 'BOTH' Term Loans and MCAs in all 50 states?
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.
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07-07-2017, 10:52 AM #2
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.
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07-07-2017, 12:14 PM #3
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- Jul 2015
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- 168
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07-07-2017, 12:25 PM #4
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
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.
Last edited by MCNetwork; 07-07-2017 at 12:28 PM.
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07-07-2017, 12:29 PM #5
- Join Date
- Oct 2013
- Location
- New York, NY
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- 1,203
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.
Andrew J. McDonald
Director of ISO Development
Yellowstone Capital LLC
1 Evertrust Plaza
Suite 1401
Jersey city, NJ 07302
PH - 347.464.0785
FX - 646.213.1790
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07-07-2017, 12:41 PM #6
"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"
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07-07-2017, 12:48 PM #7
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Same with ARF Financial. They only do loans now.
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