[JCC]

What MCA lender permits merchants pay before schedule with no penalties or interest charges? This is for a B2B service provider with bad credit (~500 FICO) and about 1 year in business.

Thanks

JC

[Chambo]

all of them....they love it! Get their payback and can flip the cash back out sooner

[Chambo]

MCA's don't charge interest....everyone knows that

[Sean Cash]

MCA's don't charge interest....everyone knows that

And there's no schedule.... :-)

Yea I never heard of an mca company charging a merchant for satisfying the deal in full all at once.

[funda21]

Question is...has a merchant ever been able to successfully strike a deal by offering less than their total payback to pay in full early?

[CO1]

I have seen Snap,iou.

[MCA Pioneer]

As a former Director at AdvanceMe, we/they from time to time would negotiate a "settlement" - essentially a reduction in the RTR owed. Here at Superior Capital, a direct high risk funder, we will on occasion do the same.

[MCNetwork]

I've seen GBR Funding, Rapid Capital and Merchant Cash & Capital provide prepayment discounts, but the number of merchants who I've seen actually prepay an advance can be counted on one hand.

[FFunding]

I've seen GBR Funding, Rapid Capital and Merchant Cash & Capital provide prepayment discounts, but the number of merchants who I've seen actually prepay an advance can be counted on one hand.

^ Exactly, merchants LOVE to ask if there is a pre-pay penalty but you know full well they will never do it. I wish a lender would offer a reduced RTR deal if paid early (on some kind of sliding schedule) as a distinguishing perk. It would be easy to sell and most likely rarely have to be enforced.

[MCNetwork]

The only reason merchants ask if there is a pre-pay penalty is because some sales offices always include that line in their pitch. In fact, no funder penalizes a merchant for prepaying. The correct pitch should be: "we offer a prepayment discount if you wish to pay off your advance earlier".

If salespeople didn't bring up the pre-pay penalty, the merchants would never know what the term meant.

[mfs01]

The only reason merchants ask if there is a pre-pay penalty is because some sales offices always include that line in their pitch. In fact, no funder penalizes a merchant for prepaying. The correct pitch should be: "we offer a prepayment discount if you wish to pay off your advance earlier".

If salespeople didn't bring up the pre-pay penalty, the merchants would never know what the term meant.

This is true, but it also helps the agent retain the merchant by making them think that there some sort of prepayment penalty, like in other conventional loans (such as mortgages)

[mfs01]

It also deters the merchant from asking about a prepayment discount.

[MCNetwork]

I understand prepayment penalties on mortgages for subprime borrowers because of refinancing risk, but that has nothing to do with the MCA world.