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  1. #1
    Senior Member Reputation points: 203963
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    Jan 2014
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    Quote Originally Posted by kevinhenry0527 View Post
    Sachip,

    The liability of a business owner taking out an MCA when they already have a line of credit or any other senior financing in place? It can definitely throw the Company in default as the assets are already pledged.

    Best,

    Kevin
    didnt mean when they have the line in place already, maybe I phrased my question incorrectly. I meant when merchant says why take out MCA when they can just go to a bank.

  2. #2
    Senior Member Reputation points: 341293
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    Quote Originally Posted by Sachip24 View Post
    didnt mean when they have the line in place already, maybe I phrased my question incorrectly. I meant when merchant says why take out MCA when they can just go to a bank.
    Oh-I don't think it would hurt them in the future obtaining a more traditional working capital solution. What may ding them up is several entities pulling credit on the client simultaneously while they are out seeking a working capital solution.
    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

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