Merchant Cash Advances

Things To Know About Merchant Cash Advances

If you’re a small business owner in need of urgent capital, a merchant cash advance may be appropriate for you.  Before you make that decision, speak with us.  At PFA, our goal is not to provide merchant cash advances.  We do, however, understand that there are times where immediate capital is needed. We have successfully helped many of our clients obtain the best merchant cash advance for their unique situation, and at the lowest costs in the industry. 

Is a merchant cash advance (MCA) right for your business? An MCA is NOT a loan.  It is a purchase of future receivables.  There are more than a hundred lenders who offer MCAs through online and live brokers.  A merchant cash advance does provide immediate relief when your business needs it most.  Before you act, consider this:

  • Be sure you’re requesting a merchant cash advance ahead of earned receivables, not in place of.
  • Don’t take on multiple MCAs without fully knowing how they work. Understanding the risks and having the ability to repay are crucial. If you can’t do either…DO NOT take one.
  • Without an exit strategy, multiple MCAs at the same time can lead to a debt trap…where it’s virtually impossible to repay…not to mention that most MCA companies will hold you in default if you “stack”.

The main problem is that a) a dedicated MCA broker often does not offer other options that may be available to you, and b) an online MCA broker leaves you with your questions unanswered.

At PFA, we first listen to your needs.  If you have an urgent need for capital (less than 2 weeks), we do offer MCAs as a type of bridge financing.  In some cases where you will not be approved for any other type of lending, a merchant cash advance may be appropriate.

We caution on the use of merchant cash advances because, although they are relatively simple and fast to get, multiple advances often hurt business cash flow.  A merchant cash advance should never be taken out unless you have an exit strategy in place.

Because we are very careful to make sure that only a qualified business takes out an MCA with us, you will need to provide:

  1. 8 months’ bank statements (all business accounts)
  2. 2018 profit & loss
  3. 2019 YTD profit and loss
  4. 13 week Cash Flow analysis



Where to submit necessary documents?

Documents not submitted through the online method can be mailed to:

Phoenix Funding Advisors
10 Washington Street,
Suite 202
Toms River, New Jersey 08753

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