Question 1

How should I compare MCA offers?

Accepted Answer

Put every offer in the same format and compare net funding, total payback, the payment amount and how often it comes out, and the expected payback time. Then compare the dollar cost of each. Funders word their terms differently, so lining them up is the only way to see which offer is really cheaper for your cash flow.

Question 2

What should an MCA offer show?

Accepted Answer

The advance amount, factor rate, total payback, every fee, net funding, payment amount, payment frequency and the holdback or fixed debit. It should also show any early payoff terms and, where your state requires it, an estimated APR. Ask for anything missing in writing before you sign, not after.

Question 3

Should I take the biggest offer?

Accepted Answer

Not by default. A bigger advance means bigger payments that come out every day or week. Take the amount your business can repay from sales without strain, and leave room for a slow month. You can often come back for a renewal later, once part of the first advance is paid down.

Question 4

Is a longer payback always better?

Accepted Answer

A longer payback lowers each payment, but it can raise the total cost if the factor rate is higher. Compare total dollars and weekly cash flow together. The right term is the shortest one your cash flow can carry comfortably, not the one with the lowest payment on paper. The factor rate calculator shows both.

Question 5

What are the red flags in an MCA offer?

Accepted Answer

Fees before funding, pressure to sign on the spot, blank or missing terms, no total payback shown, and anyone promising approval or a rate before seeing your statements. Watch too for a contract that differs from what you were told on the phone. If something doesn't match, stop and ask before you sign.

Question 6

Which contract terms should I read closely?

Accepted Answer

Read the purchased amount, the holdback or fixed payment, reconciliation rights, what counts as a default, the owner's personal promise, any confession of judgment, and the fees charged on default. Also check what happens if you close, sell or move the business. Those sections decide how the deal works when things go wrong.

Question 7

Do MCA offers expire?

Accepted Answer

Yes. Offers are based on your recent statements, so they're usually good for only a short time. If your deposits change or a new advance shows up, the funder can redo the offer or withdraw it. Ask how long an offer stands, and don't let an expiring offer rush you into terms you haven't read.

Question 8

Should a lawyer read my MCA contract?

Accepted Answer

It's a good idea, especially for a large amount or terms you don't understand. A business lawyer can explain the default section, the personal promise and any confession of judgment before you're bound by them. At the very least, read those sections yourself before you sign, and ask us about any line that's unclear.

Question 9

Can an offer change after I accept it?

Accepted Answer

It can if the final review finds something new, like an advance you didn't mention, a big drop in deposits or a bounced payment. Funders often check your account again just before funding. Telling us everything up front keeps the offer steady and avoids a surprise on funding day.

Question 10

Can I cancel an MCA after I sign?

Accepted Answer

Before the money is sent, ask the funder right away, since some will cancel. After funding, most contracts have no cooling-off period, so canceling usually means paying the advance back under the contract's terms. Read the cancellation and early payoff terms before you sign, because afterward your options are much narrower.

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