Can the cost of MCA be written off ?
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  1. #1
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    Can the cost of MCA be written off ?

    since mca is fixed costs not compounding like a loan. Do any vets know the answer? I have spoken to several accountants some tell me yes some say its a grey area

  2. #2
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    Quote Originally Posted by Sachip24 View Post
    since mca is fixed costs not compounding like a loan. Do any vets know the answer? I have spoken to several accountants some tell me yes some say its a grey area
    The fee on the money can be written off as an ordinary business expense.
    Jason H l Sales & Business Development
    Quikstone Capital Solutions l Tampa FL
    Direct Line & Mobile 813-371-8233 l Fax 813-371-8233 l Text 727-492-8812
    Jason.Hausle@quikstonecapital.com
    www.quikstonecapital.com


    Direct Lender Since 2005

  3. #3
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    Thank you Jason.

  4. #4
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    Any INTEREST you pay whether variable or fixed interest on borrowed capital is still a cost/expense and is all Tax Deductable.

  5. #5
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    Here is the challenge...... Most of the time when I review a company that has taken an advance they are not reporting it correctly on their balance sheet or income statement. 99% of the time they report the cash, but do not report the liability of cost. Inevitably this throws off the financials......
    Kevin Henry
    VP-Business Development
    Seacoast Business Funding, a division of Seacoast Bank
    561-850-9346
    Kevin.Henry@SeacoastBF.com
    1880 N Congress Ave., Suite 404
    Boynton Beach, FL 33426

  6. #6
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    That is a selling point --- I tell clients that as long as the return on their use of the capital is greater than the cost of the money they paid it is favorable money. The cost of the money they pay and balk about becomes irrelevant on top of which the money is a tax-deductible expense- that is why we are called Growth Capital.

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