Equipment as collateral

**Barbarag** · 10-07-2021, 02:35 PM

Is there anyone who uses equipment as collateral for an MCA deal? Not looking for equipment financing loan.. I know Ironwood used to but not anymore. Is there someone who does?

**Kevin Henry-Seacoast** · 10-07-2021, 02:42 PM

MCA is the purchase of future receivables. How could a MCA funder use equipment as collateral???

**Olderguy** · 10-07-2021, 03:04 PM

You can get an SBA 7A 10 year term loan at 6% using equipment (business assets) as collateral.

**abfunders** · 10-07-2021, 03:08 PM

Originally Posted by Barbarag

Is there anyone who uses equipment as collateral for an MCA deal? Not looking for equipment financing loan.. I know Ironwood used to but not anymore. Is there someone who does?

Are you looking for a high risk deal and the only collateral available to get him more money is the equipment, is that why you ask? You're trying to put them into a box, but maybe there's another box? Try spilling more beans about the deal, maybe there's another way to help.

**mca2150** · 10-07-2021, 03:34 PM

No such thing

**Barbarag** · 10-07-2021, 03:56 PM

Originally Posted by Kevin Henry

MCA is the purchase of future receivables. How could a MCA funder use equipment as collateral???

I know a couple lenders who will use real estate as collateral.. they place a lien and get the deal done. Ironwood used to accept equipment as collateral for some deals as well but not anymore.. I know it's uncommon that's why I asked if there is someone who does it.

**Barbarag** · 10-07-2021, 04:01 PM

...

**Barbarag** · 10-07-2021, 04:02 PM

Originally Posted by abfunders

Are you looking for a high risk deal and the only collateral available to get him more money is the equipment, is that why you ask? You're trying to put them into a box, but maybe there's another box? Try spilling more beans about the deal, maybe there's another way to help.

The merchant needs to purchase a new truck, deal just came in but he was funded around 2 weeks ago and doesn't qualify for the amount of $$ he's looking for. Doesn't qualify for equipment financing either because his credit is very low.

**Onepointwhat** · 10-07-2021, 04:34 PM

FinPac used to do this but only with titled vehicles as collateral. I think they would provide up to 50% of the KBB value. Not sure what their current requirements are like or if they're still offering that program.

**Kevin Henry-Seacoast** · 10-08-2021, 05:32 AM

Originally Posted by Barbarag

I know a couple lenders who will use real estate as collateral.. they place a lien and get the deal done. Ironwood used to accept equipment as collateral for some deals as well but not anymore.. I know it's uncommon that's why I asked if there is someone who does it.

Then they are NOT MCA funders....they are equipment or real estate lenders.

**Barbarag** · 10-08-2021, 10:38 AM

Originally Posted by Kevin Henry

Then they are NOT MCA funders....they are equipment or real estate lenders.

They are MCA funders, the same way they put a lien on the business or AR they can put a lien on the equipment as well as real estate. Ironwood is an MCA funder, and they used to accept equipment but now switched to only using real estate as collateral if needed for an mca deal..

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