MERCHANT CASH ADVANCE MCA LOAN REFINACING AND CONSOLIDATION
Merchant Cash Advance MCA loan refinance and consolidation pays off all your MCA loans to a zero balance and stretches your business debt over a longer period, therefore lowering your total monthly debt payments by 50% to 90%+.
We always prefer to hear more details of your business financing situation and goals, now and in the future, prior to making specific recommendations. Please book a consultation call here —>
Kanjorski Partners LLC’s consultants and advisors are equipped to handle most any MCA stressed and/or distressed situations.
Generally we have two types of MCA refinance programs and processes:
1) Short-term MCA Relief (Payoff and Consolidation to a Longer Term)
3 to 5-business-day process (app to closing) for MCA payment relief and working capital
MCAs paid off to a zero balance at closing and UCC removed
Cost of capital ranges from 18% to 28% (pending underwriting risk assessment)
Weekly or Bi-weekly payment options (determined in underwriting)
12 to 18-month term (pending underwriting)
Reduce your total monthly debt service payments by 50% to 60%
2) Long-term Full Refinance (Payoff and Refinance all business debt to a Longer Term)
Full refinance and payoff of all business debt (will leave a bank, SBA or AR factoring relationship in place)
3 to 4-week process (app to closing) for a full refinance (recap) of all business debt
Working capital provided at closing (determined in underwriting)
One monthly payment
2 to 3-year term (and in some cases and industries, 5 to 7-year+ or longer)
SBIC, private equity and investment banking is also available for special situations
MCAs paid off to a zero balance at closing and UCC removed
Cost of capital ranges from 12% to 18% (pending underwriting)
Monthly payment is principal and interest
Interest only (IO) “relief” period for 6 to 9-months after closing
Reduce your total monthly debt service payments by 60% to 90%
Our consultants and advisors typically utilize a combination of our short-term and long-term programs, running them side-by-side and simultaneously for the best results and least amount of disruption to your business.
Our Short-term program requires less documents and is a "cash flow" based underwriting with some asset consideration so our underwriters do not look as deeply at your business' financial performance (gross and net margins, EBIDTA, etc). Instead, our underwriters focus mainly on your businesses cash flow and debt load.
In most cases, this helps a business smoothly de-lever, reduce their total monthly debt service payments and add cash back to its balance sheet.
Long-term full refinance allows a borrower to get out of the MCA cycle permanently and become aligned (not with a “funder”), but with a true capital partner. A capital partner that is interested in the long-term relationship and whose rates (cost of capital) is just above standard current bank rates.
Our Long-term program and process requires a full underwriting (EBITDA, cash flow, DSCR, asset valuation, etc). Our investors and underwriters also requires an involvement by your CPA firm as we require "reviewed" and or "compiled" financials by your CPA firm with cover letter.
Some businesses cannot wait the 3-4 week period as the MCAs are devouring their cash flow.
Some businesses are too cash-strapped to wait 3-4 weeks for a Long-term full refinance. So we get them right into our short-term program, get them some relief quickly and within 3-4 weeks we get them through our long-term program and process.
You are of course welcome to choose just the Long-term Full Refinance option if you are in a decent cash position in your business right now.
Book a consultation call to speak in detail to one of our consultants and advisors —>