Many businesses do not qualify for traditional bank loans. Some business entrepreners have chosen to fund their growth through on line lenders with a merchant cash advance which are usually short term working term working capital advances that are unsecured. It’s a quick way to get funded and has some advantages. The rate or cap rate can run anywhere between 18-42% and the term 120 days to 365 days and beyond. Needless to say having 2 3 or more positions with the MCA’s can become very costly and compromise cash flow and the profitability of the business. In many cases the only way the business can continue to pay these positions is to obtain another MCA. It then becomes unsustainable where the business is struggling to pay these MCA positions and needs another advance to do so.
Capital Biz Solutions has access to an alternative fund and can consolidate these MCA advances with a 3 year term loan and a 5yr amortization schedule. These loans start at $1Million and are for businesses generating a minimum of $3Million in sales annually, or generating $300,000 in monthly revenue. The 3yr term loan with a 5yr amortization schedule is nothing short of a miracle for businsses that can’t get out from under their several MCA positions. Personal credit is not a factor however, these loans are secured by collateral such as AR, residential real estate , commercial property and equipment. If there is a collateral shortfall in AR & equipment then real estate is considererd for additional collateral This product also works extremely well for M&A transactions when traditional banks are not a fit.
We will review your financial information such as an updated P&L and Balance Sheet. Year to date sales, an inventory listing with values, an AR&AP aging and any outstanding loans to date. After our initial review with the lender we will issue a term sheet if the lender has a strong interest in funding the loan request. The request then needs to be fully undrewritten. If your business has stacked MCA positions and you would like to consolidate these postions and significantly increase cash flow please call us at 508 864 7758 or visit us on the web at https://www.capitalbizsolutions.com/. We are here to assist your business with the proper loan facility. We look forward to hearing from you.
