[gaxisa]

Just want to see if its even possible. Got a merchant with 4 MCA's (all have been funded in the past 40 days) but has about 679K between 8 invoices. So basically I'm looking for a company that does advances based on said invoices. He would like to use some of the funds to payoff all his cash advance balances, so I just wanted to see if I was wasting my time on this one. Thanks.

[omegafund]

Just want to see if its even possible. Got a merchant with 4 MCA's (all have been funded in the past 40 days) but has about 679K between 8 invoices. So basically I'm looking for a company that does advances based on said invoices. He would like to use some of the funds to payoff all his cash advance balances, so I just wanted to see if I was wasting my time on this one. Thanks.

This is possible. We just invoice factored a client for $350,000. Paid off 1 MCA and partially paid down another MCA so they would release the UCC.
It would take some work depending on the merchants debtors and the invoices, also if those MCAs all have filed UCCs or not.
It would not be a one time deal most factors want a longer term relationship with client

reach out if you want assistance.

Ben

[abfunders]

Gary, a deal like that is definitely doable.... but I guess in your case, the client has to have the bookkeeping to be able to make it happen. Every factor will need an Aged A/R list (as well as the financials), and if they can't provide that, or you can't provide them with an outsourced bookkeeper to make it happen, or they just don't want to get their books in order, walk away.

[gaxisa]

Gary, a deal like that is definitely doable.... but I guess in your case, the client has to have the bookkeeping to be able to make it happen. Every factor will need an Aged A/R list (as well as the financials), and if they can't provide that, or you can't provide them with an outsourced bookkeeper to make it happen, or they just don't want to get their books in order, walk away.

Micah appreciate your input, turns out his accountant has everything and he provided the A/R report lol

[Quick Funding Solutions]

So basically I'm looking for a company that does advances based on said invoices.

This can be done if he can provide copies of the 8 invoices

[RichardGerard]

Yes this can be done as long as the clients being billed are creditworthy. If the MCA's filed UCC's then the client will not have the luxury of picking and choosing which MCA's he wants to pay back (with most AR lenders).

Hindsight being 20/20, the question that I have is: why didn't the client go down the receivable path prior to taking out MCA debt and the likely 40% cost that goes with it?

Is the client seeking a Spot Factor or a relationship?

RG

rg@businesscapitalconsultants.com

[Kevin Henry-Seacoast]

Just want to see if its even possible. Got a merchant with 4 MCA's (all have been funded in the past 40 days) but has about 679K between 8 invoices. So basically I'm looking for a company that does advances based on said invoices. He would like to use some of the funds to payoff all his cash advance balances, so I just wanted to see if I was wasting my time on this one. Thanks.

Sent a PM. We have done several of these... Check out this success story: https://seacoastbusinessfunding.com/...etain-profits/

[Cfairbank]

This is possible. We just invoice factored a client for $350,000. Paid off 1 MCA and partially paid down another MCA so they would release the UCC.
It would take some work depending on the merchants debtors and the invoices, also if those MCAs all have filed UCCs or not.
It would not be a one time deal most factors want a longer term relationship with client

reach out if you want assistance.

Ben

Or contact us and stop worrying about UCCs, buying out positions, or stacking! That is a big benefit to factors and brokers through our factor advantage program — the factor no longer has to buy out positions. We’ve cleared as many as 8 active UCCs from MCAs and all the dead ones to allow the deal to be “factorable”. This is 100% additive to a factors arsenal

[WestCoastFunding]

Or contact us and stop worrying about UCCs, buying out positions, or stacking! That is a big benefit to factors and brokers through our factor advantage program — the factor no longer has to buy out positions. We’ve cleared as many as 8 active UCCs from MCAs and all the dead ones to allow the deal to be “factorable”. This is 100% additive to a factors arsenal

If I understand this, you basically buyout the MCAs (as the factoring company needs all UCCs cleared) as part of a tri-party agreement?

[HDF]

I see it more as Top-Up financing. Allows the Factor do what they specialize in and the business accesses capital above and beyond the scope of invoices. (for any number of reasons to need a lump sum- opportunistic, event driven etc. The Factor no longer has to judge whether or not to clear out a UCC or ten. Win-win.

Value comes with the existing and budding relationships they have with any particular factor to do so.

[WestCoastFunding]

I see it more as Top-Up financing. Allows the Factor do what they specialize in and the business accesses capital above and beyond the scope of invoices. (for any number of reasons to need a lump sum- opportunistic, event driven etc. The Factor no longer has to judge whether or not to clear out a UCC or ten. Win-win.

Value comes with the existing and budding relationships they have with any particular factor to do so.

Yeah, seems like a good deal. Especially since MCA UCCs seem to be the biggest barrier to get a factoring/A/R line in place. I wonder what the max funding amount is.

[Kevin Henry-Seacoast]

Yeah, seems like a good deal. Especially since MCA UCCs seem to be the biggest barrier to get a factoring/A/R line in place. I wonder what the max funding amount is.

Even better when the factor writes the check themselves to clean everything up and lowers the cost for both by a bunch. Not to mention layering in other services that helps the client and reduces costs.

https://seacoastbusinessfunding.com/...etain-profits/

[WestCoastFunding]

Even better when the factor writes the check themselves to clean everything up and lowers the cost for both by a bunch. Not to mention layering in other services that helps the client and reduces costs.

https://seacoastbusinessfunding.com/...etain-profits/

Absolutely. But I think this program would be for the companies that don’t have enough factoraboe A/R to cover total MCA debt.

[gaxisa]

If you're at an actual "bank" don't contact me. It has to be similar to a traditional MCA except instead of based on bank statements its based on A/R. Or it'll be too difficult to get done

[Kevin Henry-Seacoast]

Absolutely. But I think this program would be for the companies that don’t have enough factoraboe A/R to cover total MCA debt.

Which is what we did...... We took out their factor and provided a term note to clean up the MCA. We gave them better advance rates/liquidity and reduced their costs significantly.

[Kevin Henry-Seacoast]

If you're at an actual "bank" don't contact me. It has to be similar to a traditional MCA except instead of based on bank statements its based on A/R. Or it'll be too difficult to get done

Hi Gaxisa,

Yes, we are owned by a bank, but can still work with companies in transition or those that don't qualify for bank financing. We work with companies facing serious challenges. One has a $10Mil IRS tax lien we helped work through and they ultimately got cleaned up and sold the business.