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  1. #1

    MCA is slow?

    How slow has it been overall for everyone? Its been picking up for myself and a select few of my ISO partners these past few months and still funding some decent sized deals but I am still hearing from a majority of my ISOs that there aren't many deals right now/MCA is pretty dead. Whats the general consensus here?




    Nicholas Stoski

    Lifetime Funding LLC
    nicholas@lifetimefundingllc.com
    516-604-0609

  2. #2
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    We don't offer MCA..... I am very busy.
    Seacoast Business Funding, a division of Seacoast Bank
    Kevin Henry-VP Business Development
    Kevin.Henry@SeacoastBF.com
    561-623-1872
    www.seacoastbf.com
    Boynton Beach, FL

  3. #3
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    lifetimefunding more like flatlinefunding

  4. #4
    Quote Originally Posted by Don Dolla View Post
    lifetimefunding more like flatlinefunding
    that joke was cornier than your username

  5. #5
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    Quote Originally Posted by Nstoski View Post
    that joke was cornier than your username
    answered your questions thotski

  6. #6
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    Quote Originally Posted by Kevin Henry-Seacoast View Post
    We don't offer MCA..... I am very busy.
    So why are you on here? The forum is literally called "Merchant Cash Advance"

  7. #7
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    Need to have diverse portfolio of sba or term products right now. Can’t go into with old days short term garbage. Most these guys just got those interest forgiven loans.

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    Quote Originally Posted by SFC View Post
    So why are you on here? The forum is literally called "Merchant Cash Advance"
    This is Kevin's guilty pleasure. Scrolling these forums is like watching Jerry Springer.

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    Delete
    Last edited by Shorebird; 09-15-2020 at 11:26 AM.

  10. #10
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    The demand for MCA has gone down since the EIDL and PPP. Since the industry is so congested it makes it harder to get a piece of the pie. We're still funding just not as much as before.

  11. #11
    Quote Originally Posted by FCG View Post
    The demand for MCA has gone down since the EIDL and PPP. Since the industry is so congested it makes it harder to get a piece of the pie. We're still funding just not as much as before.
    i agree withthis. Theres still plenty of money in MCA (for now). EIDL and PPP definitley knocked out a lot of potential clients, but there is still plenty of business to go around, and i only see that growing as we move foward.

  12. #12
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    I wouldn't say it's dead, it's reluctant.

    Since May we have slowed down, picked-up, leveled, slowed down, and then picked back up. The need for funding is absolutely still there, clients are still filling out applications to get offers but they all seem very unwilling to move forward. This is even with merchants we've funded before that KNOW we just put a great deal in front of them - They are turning down good offers to try their luck with SBA, main street funding, new banking relationships, or wherever they can get $150,000 at 5% when they are depositing $50K monthly with a 600 Fico (ha).

    We have also only focused on essential businesses since April and our best performing portfolio since May has been our equipment leasing one. Followed by SBA, then invoice factoring.
    Renewals have also been nice and much needed during this time.

    I would still include cash advances, splits, etc. but not have it be your primary portfolio at this time. - (Unless it's performing well)

    I would start finding new ways to approach clients that focus on the near-term recovery/performance and then into the long term initiatives that the business has. Really take the time to understand what your clients needs are so you can come up with a strategy and timeline that lays out the next 5-years and what they will need for operating capital, equipment, etc. during the 5-year period. Clients want long term relationships that they can trust are going to be there for them, not just now, but in the long run. Get the next steps locked in on paper out sent out, check-in to review the account every month, get updated statements, financials, etc. Instead of finding quick deals where you fund the max amount (just because you can) and then hope for a renewal later down the road, set the expectation of long term relationship from the start.

    First, start by looking for clients that will be good for 3 - 5+ transactions per year
    [Example: A larger contractor will most likely upgrade equipment every few years, have projects where they need working capital to initiate on a yearly basis, and invoices that can be factored when they are waiting to receive payment.]

    Once you have some solid clients, do your absolute best to manage their account, stay in touch, and follow through on your promises.


    Unlike direct lenders, brokers have an advantage in this market because they are able to offer different products across other lending spaces. The goal is to not waste time trying to do every deal, but find the options that you can offer that will add the most value to your clients and that helps you create a niche for yourself.
    Last edited by getitfunded; 09-15-2020 at 11:42 AM. Reason: Always at least one typo...

  13. #13
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    Quote Originally Posted by getitfunded View Post
    I wouldn't say it's dead, it's reluctant.

    Since May we have slowed down, picked-up, leveled, slowed down, and then picked back up. The need for funding is absolutely still there, clients are still filling out applications to get offers but they all seem very unwilling to move forward. This is even with merchants we've funded before that KNOW we just put a great deal in front of them - They are turning down good offers to try their luck with SBA, main street funding, new banking relationships, or wherever they can get $150,000 at 5% when they are depositing $50K monthly with a 600 Fico (ha).
    This^^. From my experience, submissions haven't stopped. However, merchants have this misconception that we are a bank and are providing bank terms/rates, even though we never present ourselves as such. I think the EIDL & PPP set false expectations in their heads.

  14. #14
    Quote Originally Posted by getitfunded View Post
    I wouldn't say it's dead, it's reluctant.

    Since May we have slowed down, picked-up, leveled, slowed down, and then picked back up. The need for funding is absolutely still there, clients are still filling out applications to get offers but they all seem very unwilling to move forward. This is even with merchants we've funded before that KNOW we just put a great deal in front of them - They are turning down good offers to try their luck with SBA, main street funding, new banking relationships, or wherever they can get $150,000 at 5% when they are depositing $50K monthly with a 600 Fico (ha).

    This EXACTLY sums up my last 6 months.

  15. #15
    I would agree with the statements made by my peers in the industry.......glad to see a substantive discussion on Dailyfunder for a change.

  16. #16
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    For merchants that qualify, SBA 7(a) Loans - we had a nice carrot that is soon expiring - SBA paying 1st 6 months of payments.

    Smaller Funding Needs - Credit Card Splits - $5K upwards to around $20K -
    Dave Lambert
    FC Financial LLC
    dave@fcbankcard.com
    http://www.fcbankcard.com
    1-727-291-7890 (Text or Leave Message)
    Office: 727-233-1111

  17. #17
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    Quote Originally Posted by getitfunded View Post
    I wouldn't say it's dead, it's reluctant.

    Since May we have slowed down, picked-up, leveled, slowed down, and then picked back up. The need for funding is absolutely still there, clients are still filling out applications to get offers but they all seem very unwilling to move forward. This is even with merchants we've funded before that KNOW we just put a great deal in front of them - They are turning down good offers to try their luck with SBA, main street funding, new banking relationships, or wherever they can get $150,000 at 5% when they are depositing $50K monthly with a 600 Fico (ha).

    We have also only focused on essential businesses since April and our best performing portfolio since May has been our equipment leasing one. Followed by SBA, then invoice factoring.
    Renewals have also been nice and much needed during this time.

    I would still include cash advances, splits, etc. but not have it be your primary portfolio at this time. - (Unless it's performing well)

    I would start finding new ways to approach clients that focus on the near-term recovery/performance and then into the long term initiatives that the business has. Really take the time to understand what your clients needs are so you can come up with a strategy and timeline that lays out the next 5-years and what they will need for operating capital, equipment, etc. during the 5-year period. Clients want long term relationships that they can trust are going to be there for them, not just now, but in the long run. Get the next steps locked in on paper out sent out, check-in to review the account every month, get updated statements, financials, etc. Instead of finding quick deals where you fund the max amount (just because you can) and then hope for a renewal later down the road, set the expectation of long term relationship from the start.

    First, start by looking for clients that will be good for 3 - 5+ transactions per year
    [Example: A larger contractor will most likely upgrade equipment every few years, have projects where they need working capital to initiate on a yearly basis, and invoices that can be factored when they are waiting to receive payment.]

    Once you have some solid clients, do your absolute best to manage their account, stay in touch, and follow through on your promises.


    Unlike direct lenders, brokers have an advantage in this market because they are able to offer different products across other lending spaces. The goal is to not waste time trying to do every deal, but find the options that you can offer that will add the most value to your clients and that helps you create a niche for yourself.
    This was true till July.July I did decent with mca and August numbers were almost the same as pre-covid .This month seems like we might hit a record of even pre-covid.

  18. #18
    From what I believe, the EIDL dies at the end of September. I feel like that may re-open a larger opportunity in MCA and reset some of the expectations. The SBA programs definitely were great for those that could qualify but also put these 500-600 FICO score merchants heads into the clouds.

  19. #19
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    Quote Originally Posted by RickyR3712 View Post
    This was true till July.July I did decent with mca and August numbers were almost the same as pre-covid .This month seems like we might hit a record of even pre-covid.
    mca is defiantly picking up on the lower end , issue i am having is on the A lenders side having way to many guidelines.Even guys in 18 months deals they are getting offered to renew at a 12 month deal.

  20. #20
    Senior Member Reputation points: 9438 KINGCASH's Avatar
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    Hands down- picking up exponentially.
    Hope anyone who is not seeing it, will have it turn around for them asap

  21. #21
    If you are not putting merchants that you have worked with into a marketing campaign then you are definitely going to lose out on some nice revenue in Q4 unless congress decides to pump more money into businesses.

    Its funny how these merchants think. They would take 1.40s and got a cheap EIDL. Now they believe that they qualify for a single digit rate.

  22. #22
    Quote Originally Posted by SFC View Post
    So why are you on here? The forum is literally called "Merchant Cash Advance"
    Good Question!

  23. #23
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    Just saw this meme that reminds me of this thread
    50851691_2786110338279791_918635698649563136_n.jpg
    Micah Markowitz | mmarkowitz@abfunders.com | 855-33-GO-ABF (direct)

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    The problem solving caucus, which is 25 dems and 25 gops, have put a bill in the middle of both parties to try and pass this week or soon that would extend the PPP program to $240B in addtl access along with rectifying main street lending programs. those merchants who got used to the cheap money may be pounded with it again very soon. $50B of this proposal would be for EIDL

  25. #25
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    Quote Originally Posted by fundingsmbs View Post
    The problem solving caucus, which is 25 dems and 25 gops, have put a bill in the middle of both parties to try and pass this week or soon that would extend the PPP program to $240B in addtl access along with rectifying main street lending programs. those merchants who got used to the cheap money may be pounded with it again very soon. $50B of this proposal would be for EIDL
    Sheeeeesh

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