MCA Debt Consolidation Program

MCA debt consolidation

Provides the ability for businesses that are struggling with expensive, daily payments (e.g. MCA debts) to drastically reduce the amount of their payments and cost of capital.
 
Businesses must be solvent and have a demonstrated ability to pay their monthly obligations over the next 12-18 months. Additional capital beyond the existing debts is available if the financial strength of the client warrants.
 
Note: Clients are strictly prohibited from obtaining additional loans or investment capital (“stacking”) from 3rd parties during the funding term. If the client has expansion opportunities during the funding term, lender will consider providing additional capital as long as client can demonstrate a clear path to repayment.
 
Payment cycle: Monthly or weekly (client choice)
 
Amount: $150k - $2mm (more on a case by case basis)
 
Some additional notes on Consolidations:
 
Minimum funding $150k, Maximum $2M (more on a case by case basis)
 
On average this will reduce client payments to about one third of what they are paying now. All fifty states, almost all industries.
 
There is theoretically no limit on the number of positions that can be consolidated (we have consolidated eight positions more than once).
 
Average turn around 2-3 weeks (We are not a MCA lender, so we have a more in-depth underwriting process)
 
IMPORTANT: Perhaps the biggest driver for approval is NET income. There needs to be enough net income at the end of the month for the client to comfortably make their monthly payments, with margin left over (e.g. Monthly payments cannot exceed 70% of monthly net income).

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Term loan program (lowest rate and best term):

General Guidelines:

650 min FICO – slightly lower with good reason Letter of Explanation

Relative management experience

Cash flowing

1.15 dscr

Collateral ie: commercial real estate a plus but not necessarily required

Smallest mca consolidation amount $150k – no real maximum for mca consolidation

Below is a list of initial items we need for our review:

-3 years of business tax returns

-3 years of personal tax returns

-Business Debt schedule (showing all outstanding liabilities of the business)

-Copies of notes to be refinanced

-Completed loan applications (includes personal financial statement, resume, business history, etc.)

-2017 Profit & Loss and Balance Sheet dated the same date as the business debt schedule

-Engagement agreement

Once all docs are in the process can take as little as 30-45 days.