[EminentTransact]

Hey Guys,


I would like to know what is your explanation for the cost of capital for a MCA product? whats makes the cost justified? What are these standards truly based on?

[Michael I]

sales guide 101 . got to miss jay ballentine for this one
short answer is risk ratio . the higher the risk the higher your rate

[Yankeeman07]

Hey Guys,


I would like to know what is your explanation for the cost of capital for a MCA product? whats makes the cost justified? What are these standards truly based on?

Justified?

Risk
No Collateral
Banks are not lending
How badly does the merchant need/want the funds


Just a few thoughts.

[ridextreme]

Explanation for the cost? A lot of these merchants have horrible credit, poor banks, and unstable revenues. I think the cost should be higher, not lower.

if your not sold on the product yourself, you will never be able to sell it.

[Funder Mark]

Speed, unsecured, deal sizes that banks will not touch

[ADiamond]

what you would tell your client is a lot different than the actual reason behind it. the fact is a lender is not making anywhere near 45% on a 1.45 factor rate.

[WestCoastFunding]

You get to stay in business an extra 6-12 months.

[Brian Lawrence]

Hey Guys,


I would like to know what is your explanation for the cost of capital for a MCA product? whats makes the cost justified? What are these standards truly based on?

The cost to the merchant is future profit lost having not taken a profitable offer. The cost is valued by any merchant alike, whether a merchants annual gross revenue is $1,000,000.00 or $100,000,000.00,'merchant cash advance can keep your business warm or burn it to the ground. It is at the discretion of the merchant to determine if the offer presented proves profitable.
The merchant determines an offer to be profitable let alone most profitable as anything less is simply on its way 'out of business,' providing there is no stacking with or without funders awareness and that each and every funder involved is on the up and up.

Additionally, the opportunity that MCA offers is truly outstanding. Aside for immediate approval of unsecured funds directed to the merchants business checking, the merchant is considered the expert in his business to determine where he spends the funds. Some merchants use the money for growth, others for operating expenses, and some both while allocating funds to take the family on a much needed trip nationwide or beyond.

Reason being the funds are bought and paid for in advance by the funder, rather than a loan. Brilliant actually, the merchant is unequivocally king of her/ his castle. No price to pay for freedom needed, quite the opposite really.

For the merchant inundated with funders 'knocking on their door' offering opportunity to sell future profits today for cash in hand at a discount to actual future accumulated value it is appropriate to accept an offer or at the very least reply, no thank you.

[Christian]

The pitch depends on what they intend to use the funds for.