{"id":4730,"date":"2023-10-04T14:10:20","date_gmt":"2023-10-04T14:10:20","guid":{"rendered":"https:\/\/www.mcashadvance.com\/?page_id=4730"},"modified":"2025-05-23T11:27:38","modified_gmt":"2025-05-23T15:27:38","slug":"mca-offers","status":"publish","type":"page","link":"https:\/\/www.mcashadvance.com\/resources\/mca-offers\/","title":{"rendered":"MCA Offers: What You Need to Know and Do"},"content":{"rendered":"\n
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By Richard Wilson<\/a><\/p>\n\n\n

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Last Updated on<\/p>\n\n<\/div><\/div>\n\n

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<\/i> Estimated read time: 7 minutes<\/p>\n\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n

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When your application is approved, we\u2019ll send you a merchant cash advance (MCA) offer. This offer outlines how much we\u2019re willing to provide, what it will cost, and how repayment works. It might not match the exact amount or terms you asked for. That\u2019s normal. We base the offer on your business\u2019s sales, deposit patterns, and risk profile.<\/p>\n\n\n\n

In this article, we\u2019ll walk you through how MCA offers work, what to look out for, and what to do next.<\/p>\n\n\n

Step 1: Receiving the Offer<\/h3>\n\n\n

Once you’re approved, you\u2019ll receive your offer by email. Most providers, including us, give you a secure online link to view the terms. If you’re working through a broker, they might call or text you the offer and walk through it by phone.<\/p>\n\n\n\n

You\u2019ll usually have a few days to decide. Offers can expire, especially if your sales are volatile or the lender\u2019s funding capacity changes. If you’re unsure about timing, ask.<\/p>\n\n\n

Step 2: Reviewing the Offer<\/h3>\n\n\n

Take your time. MCA offers can vary from provider to provider. Some terms are negotiable. Others are fixed. Here\u2019s what to review:<\/p>\n\n\n

Advance Amount<\/h4>\n\n\n

This is the lump sum we\u2019re offering to advance your business.<\/p>\n\n\n

Factor Rate<\/h4>\n\n\n

This determines the cost of the advance. A factor rate of 1.35 on a $20,000 advance means you\u2019ll repay $27,000 in total.<\/p>\n\n\n

Total Repayment<\/h4>\n\n\n

Multiply the advance by the factor rate to get this number. It’s fixed and does not change based on when you repay.<\/p>\n\n\n

Holdback Percentage<\/h4>\n\n\n

This is the percent of your daily card sales or bank deposits we collect until the total payback is met. Most fall between 10 percent and 20 percent.<\/p>\n\n\n

Repayment Term<\/h4>\n\n\n

We\u2019ll estimate how long it might take to pay back based on your recent sales. This is not a fixed term, just a projection.<\/p>\n\n\n

Fees<\/h4>\n\n\n

Some MCA providers charge origination fees, admin fees, or wire fees. We don\u2019t. Make sure you check. All fees should be disclosed up front.<\/p>\n\n\n

Offer Expiry Date<\/h4>\n\n\n

Offers do not stay open forever. If you delay, we might need to reassess your application before re-issuing.<\/p>\n\n\n

Prepayment Terms<\/h4>\n\n\n

Unlike loans, paying early won\u2019t reduce your cost unless we offer a buyout discount. Ask if that\u2019s available.<\/p>\n\n\n

Renewal Policy<\/h4>\n\n\n

Some providers trigger automatic renewals once you repay a portion. If you don\u2019t want that, clarify it early.<\/p>\n\n\n

Personal Guarantee<\/h4>\n\n\n

You might be personally liable if your business cannot repay. Read this carefully.<\/p>\n\n\n

UCC Lien<\/h4>\n\n\n

Most providers file a lien against your business assets. This can limit your ability to get other financing.<\/p>\n\n\n

Confession of Judgment<\/h4>\n\n\n

This clause allows the lender to enter a court judgment against you without a trial if you default. Not all states allow it. We don\u2019t use this clause, but some providers do.<\/p>\n\n\n

Step 4: Comparing Offers<\/h3>\n\n\n

Don\u2019t rush. You can compare multiple offers even if you\u2019re approved with one provider. Until you accept the offer and sign the agreement, you\u2019re not committed.<\/p>\n\n\n\n

Most MCA offers are valid for a few days to a week, depending on the provider. Some may expire sooner if your sales fluctuate or if lender capacity changes. Always check the expiry date on your offer, and if it\u2019s not clear, ask your provider directly.<\/p>\n\n\n\n

Look at:<\/p>\n\n\n\n