The landscape of business funding is a dual-natured environment. On one side lies the world of responsible lending, characterized by thorough underwriting and a genuine interest in the borrower's success.
On the other, a darker, more treacherous path awaits, paved by predatory cash flow lenders who prioritize their own exorbitant profits over the well-being of the businesses they claim to help.
Understanding the fundamental differences between these two worlds is not just a matter of good business sense; it is a crucial element of survival and sustainable growth.
This article outlines the progressive journey a business takes to secure capital, beginning with the foundational stages of bootstrapping and seed funding from personal sources, friends, and family, which prioritize founder control and concept validation.
As a business demonstrates early traction, it can attract angel investors who provide more substantial capital and mentorship in exchange for equity.
For businesses poised for rapid expansion, the next stage involves significant investments from venture capital firms or strategic partners, which fuels hyper-growth but requires relinquishing considerable ownership and control.
As a company matures and achieves stable profitability, it often turns to debt financing, such as bank loans or SBA loans, to fund further growth without diluting ownership.
Ultimately, highly successful businesses may pursue an Initial Public Offering (IPO) to access public markets or engage in mergers and acquisitions (M&A) for a strategic exit or large-scale expansion.
Each funding stage requires different levels of preparation, presents distinct impacts on founder ownership, and necessitates avoiding common mistakes like poor planning and misalignment of funding type to the business's current phase, while also looking toward future trends like fintech and impact investing.
The U.S. Small Business Administration (SBA) loan programs emerge as a beacon of hope, offering a unique and often superior alternative to conventional financing.
They are designed specifically to address the funding gaps faced by small businesses, providing access to capital on terms that are typically far more favorable than what the open market can offer.
Understanding the fundamental nature of SBA loans and how they differ from other financing options is the first step toward leveraging this powerful resource for your business's success. It’s about recognizing that not all loans are created equal, and some are indeed structured with the specific needs of small businesses in mind, offering a pathway to growth that might otherwise be out of reach.
The SBA's mission is to support and empower small businesses, and their loan programs are a direct manifestation of that commitment, acting as a catalyst for economic development and job creation across the nation.
For many small business owners, the idea of securing a loan can feel like navigating a labyrinth of complex paperwork, stringent requirements, and seemingly insurmountable obstacles. Often, traditional bank loans appear out of reach, leaving entrepreneurs wondering where to turn for the capital needed to grow, innovate, or simply sustain operations.
This is where the U.S. Small Business Administration (SBA) steps in, offering a vital lifeline to American businesses.
The truth is, SBA loans are often far more accessible than commonly perceived. Backed by the United States government, these loans are specifically designed to promote small business growth and encourage healthy risk-taking, recognizing that a thriving small business sector is the backbone of the nation's economy.
This article will demystify the SBA loan process, highlight its numerous advantages, and equip you with the knowledge to pursue this powerful funding avenue for your business.
Taking on business debt can be a powerful tool for growth and expansion, but it's a double-edged sword.
Used strategically, it can propel your small business to new heights.
Used indiscriminately, particularly to plug cash flow holes, it can lead to a precarious financial situation and even business failure.
This article will explore the critical distinction between purposeful debt and debt incurred to cover operational shortfalls, offering a comprehensive guide for small business owners.
SHORT-TERM MCA REFINANCE —> 12 to 18-month term —> weekly and/or bi-weekly payments
—> 3-5 days application to closing —> APPLY HERE
LONG-TERM MCA REFINANCE —> 24 to 36-month term —> monthly payments
—> 2 to 3-weeks application to closing —> APPLY HERE
“…Defaulting (missing or stopping payments) on a Merchant Cash Advance (MCA) can potentially drain your business’ bank account, trigger aggressive collection action under Uniform Commercial Code (UCC) and civil litigation. Default under the provisions of a Merchant Cash Advance (MCA) agreement can put your business and you personally in a difficult position.
If you cannot continue to afford your Merchant Cash Advance (MCA) payments,
there are solutions for you and your business!….”
“….Merchant Cash Advance (MCA) is a trap for small businesses.
Easy to get into and hard to get out of Merchant Cash Advances (MCAs) should be the last resort for small business owners that need funding quickly or who may not qualify for a traditional bank loan.
Before you consider taking a Merchant Cash Advance (MCA), please seek other alternative (non-bank) financing as there are much better options out there for your business…..”
1) MERCHANT CASH ADVANCE (MCA) REFINANCE:
Refinance and payoff your Merchant Cash Advance with a new term loan or line of credit
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation
2) MERCHANT CASH ADVANCE (MCA) RESTRUCTURE:
Re-negotiate your Merchant Cash Advance agreement(s) to longer terms with lower payments that your business can manage and afford to pay back on a new weekly, bi-weekly or monthly payment schedule
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services
Continue to full post….
Read our post to hear about all of your options and to setup a
FREE consultation call for Merchant Cash Advance (MCA) Solutions…..
Merchant Cash Advance (MCA) Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation
Merchant Cash Advance (MCA) Debt Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services
Merchant Cash Advance (MCA) Help & Information for Business Owners-
https://www.kanjorskipartners.com/merchant-cash-advance-information-and-resources-refinancing-restructuring-stop-merchant-cash-advance-lower-merchant-cash-advance-payments
“…Merchant Cash Advance (MCA) has many disadvantages that you should be aware of before you enter into a MCA receivables purchase agreement. Weigh these disadvantages against the potential benefits.
1. MERCHANT CASH ADVANCE (MCA) IS AN EXTREMELY EXPENSIVE FORM OF FINANCING
2. MERCHANT CASH ADVANCE (MCA) IS A SHORT-TERM FINANCING OPTION, NOT A SOLUTION
3. MERCHANT CASH ADVANCES (MCAs) DO NOT SOLVE CASH FLOW PROBLEMS
4. SELLING FUTURE SALES IN A MERCHANT CASH ADVANCE (MCA) AGREEMENT IS DANGEROUS…”
Read our full post about the “Disadvantages of Merchant Cash Advance (MCA)”
“…When your business financing broker is presented with an “Approval” from the Merchant Cash Advance (MCA) company, your broker chooses from a list or tier of “Offers” at each Merchant Cash Advance (MCA) company. This list of offer options contains variable commission rates and payback terms and cost to the borrower. (Ex.- $100,000 in “funding” at a 1.35x factor rate or $135,000 payback). Your “trusted, friendly broker” adds from 0.10x to 0.15x to the offer and presents it to you as: $100,000 in “funding” at a 1.50x factor rate of $150,000 payback…”
“…On a $100,000 Merchant Cash Advance (MCA), a broker who sold the advance to their client (you) receives between 10% and 15% of the total amount funded. So your broker receives $10,000 to $15,000 (10% to 15% of the total “funding”) the day after you get “funded”…
Yes. That is not a typing or mathematical mistake on our end. We assure you of this. This is the reality of how grossly over-compensated your broker is for selling you a high-cost and very short-term business financing option…”
FREE Consultation with our Merchant Cash Advance (MCA) Refinancing & Restructuring experts.
Fill out the inquiry form below and we will get you started on MCA refunds STARTING TODAY!
“Merchant Cash Advance (MCA) companies use extremely aggressive, shaming and dirty, back-handed collection tactics to attempt collections on defaulted or struggling businesses.
One common [destructive collection] tactic is collection attempts under Article 9 of the Uniform Commercial Code (UCC) which allow creditors who have filed a valid UCC lien on some or all of a business’ assets to notify accounts receivable creditors of the business to pay them and not the business.
Even when a business speaks to the MCA company and attempts to work out a payment plan that they can afford, the MCAs normally immediately start using these aggressive collection tactics and do not agree to a modification (Restructure) of the MCA. The business is now running out of options to deal with their MCA debt.”
Visit our post and download our latest FREE FULL MCA REPORT-
“The Critical Dangers of Merchant Cash Advances”
********
Solutions are available to get you and your business out of the destructive MCA cycle.
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
Here’s why we suggest that you NEVER, EVER, EVER accept a
Merchant Cash Advance “RENEWAL” Offer
”…Our main goal with this report is to educate you on the true cost and danger of taking MCAs for your business. If you listen to or learn anything from this report, please, please, please, never, ever, ever take a “Renewal” from an MCA company…”
”…As a general rule within the MCA industry, when a business pays back 50% or more of the MCA total contract they are normally qualified for a “RENEWAL” which simply means that the MCA company is willing to give you more “funding” since you are 50%+ paid in to your current MCA contract….”
Visit our post and download our latest FREE FULL MCA REPORT-
“The Critical Dangers of Merchant Cash Advances”
********
Solutions are available to get you and your business out of the destructive MCA cycle.
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
FACT: MERCHANT CASH ADVANCES (MCAs) DESTROY BUSINESSES.
********
Excerpt from our latest report on the dangers of MCAs…
“…a majority of small businesses have just enough cash flow to pay its operating expenses…
Excerpt from our latest report on the dangers of MCAs…
“…The reason the vicious cycle of MCAs can sustain itself for some period of time is because of one simple word in the industry, “stacking”. MCA “stacking” is to put a second MCA on top of a first MCA
********
Visit our post and download our latest FREE FULL MCA REPORT-
“The Critical Dangers of Merchant Cash Advances”
********
Solutions are available to get you and your business out of the destructive MCA cycle.
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
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
LOWER YOUR PAYMENTS: MERCHANT CASH ADVANCE RESTRUCTURING
Merchant Cash Advance restructuring can be a simple process. Your creditors will not tell you this though.
Avoid bankruptcy. Stop harassing and stressful collection activity. Solve your business’ Merchant Cash Advance (MCA) debt situation.
Restructuring services are provided by New Horizons Restructuring LLC, a Kanjorski Partners related restructuring service entity.
View our FREE white paper report on Merchant Cash Advance (MCA) Restructuring:
“THE CRITICAL DANGERS OF MERCHANT CASH ADVANCES”
Our extensive experience in MCA contract review, accounting reconciliation and our vast knowledge of legal collections throughout the US can help your business potentially get refunds and/or credits from either temporary or permanent over-payments owed to you contractually from the MCA companies.
Construction Contractor - Electrical & Remodeling
MCA Total Balance: $225,595
Total Daily & Weekly MCA Payments Per Month: $48,955
Working Capital Given to Borrower at Closing: $30,000
New Refinanced Term Loan Payment: $14,623
Monthly Debt Service / Cash Flow Savings: $34,332
(plus $30,000 of working capital received at closing)
Small businesses that are struggling with predatory merchant cash advances. Daily and weekly payments and effective APR of 60% up to 200%+ are crushing small businesses across the nation as we post this.
Kanjorski Partners LLC, has been refinancing small businesses across the US and providing additional working capital since Sept 2019.
Refinance of the entire MCA capital stack for a business and refinances it into a term loan resulting in a reduction of total monthly debt service payments by 50% to 90% for small business owners.
We are proud to be a part of an initiative and provide this solution to small businesses to help them deleverage and exit of predatory merchant cash advances positions and restore liquidity and equity to their balance sheet.
Business Finance & Strategy Advisors
Refinance. Restructure. Reorganize.
Help with Business Debt, Loans and Merchant Cash Advance (MCA)
