THE UNSUSTAINABLE MERCHANT
CASH ADVANCE STRUCTURE********
Download our FREE REPORT:
“The Critical Dangers of Merchant Cash Advances”
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Excerpt from our latest report on the Merchant Cash Advance (MCA) Industry…
MERCHANT CASH ADVANCE (MCA) Receivables Purchase Agreement structure has 6 critical parts which all add up to a HUGE and UNSUSTAINABLE, even predatory cost for this type of expensive and short-term financing:
1) PURCHASE AMOUNT: Amount of future accounts receivables and/or sales deposits purchased
2) PURCHASE PRICE: Discounted amount paid for future accounts receivable and/or sales deposits
3) FACTOR RATE: The multiple (ex- 1.50x or 1.5 times) of Purchase Amount divided by Purchase Price
4) SPECIFIED DAILY PERCENTAGE: Percentage of future accounts receivable and/or sales deposits to be drafted each business day or week as specified in the MCA purchase agreement
5) FIXED PAYMENT: The “fixed” daily or weekly payment drafted by a MCA company on each business day or business week as determined by the average deposits over the previous 3 to 6 months
6) NUMBER OF PAYMENTS: Length of time for payback of the MCA purchase agreement (ex.- 90 draft days = ~4.5 months, 120 draft days = ~6 months, etc as MCAs draft on business days)
MERCHANT CASH ADVANCE SOLUTIONS
MCA Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidationMCA Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services