I had a merchant who had multiple positions with a/b and c lenders. $100k rev, 550 credit, and taking bad deals. His latest approval was $20k 75d.

I started working with a private lender who does loans/LOC with invoices or contracts as collateral. This merchant had 3 signed contracts totaling $700k. All the contracts were b2b (replacing the roof of a hotel, pizza store, etc.)

It took about two weeks since the lender was in vegas for a convention, but we got him set up with a $500k LOC. No payments until contracts were completed. The rate is 0.0012% daily with an upfront 5% fee and my fee of 2%. He can keep pulling from the LOC as long as he submits contracts.

I make half the origination fee + my fee + recurring 1% on every pull.

Downsides:
Hard credit pull (unless you can pull the credit yourself and supply it)
UCC filed
The origination fee has to be paid at the time of funding; it doesn't come out of the loan amount. (Lender is 100% ok with funding the merchant with an MCA to pay for the fee)
Less commission than MCA
Invoices/contracts MUST be b2b or business to the government, so they are collectible. The only exception is solar, as the project is guaranteed by the solar loan company.

Upside:
Can use funds for anything (think paying off MCA’s to help get account in order.)
Much bigger funding amounts
No clawback
No payments.
PSF fees are allowed as long as they are approved (see above, my 2% fee)
You can fund MCA’s behind/with this product.
Great for construction which is hard to fund these days.
Great for b2b suppliers that need to get money to fill orders


If you have merchants that fit this box and want access to it, shoot me an email. This funded faster and paid more than any other non-MCA factoring I've tried. I can get pretty creative with these guys and can structure the deal to make it fit each merchant.

Btw, not claiming to be a lender. We are a broker shop in Hollywood. But I work with other brokers and have plenty that can vouch for me regarding paying out commissions for deals ppl send me to close, kickbacks, etc.