The warning signs
Elk Grove's small businesses grew alongside a fast-growing suburb, and many took merchant cash advances during a busy stretch, sized to deposits that were strong at the time. The warning signs of too heavy a burden are consistent:
- You compare your daily payment with your slowest week of deposits, and it takes a very large share.
- You have taken a second advance to keep up with the first.
- Rent, payroll or supplier payments are being delayed to keep advance payments on time.
- You look at your balance every morning before you decide what to order.
How the squeeze works in a seasonal local business
Landscaping, construction trades, restaurants and tasting rooms in the Elk Grove area often earn unevenly. An advance payment, though, is steady. For illustration only, a contractor depositing $3,500 a day on busy weeks and $1,200 on slow weeks with a fixed payment of $600 hands over about 17% of a busy day and half of a slow day. The same obligation feels very different in the two weeks. These numbers are examples, not a description of any offer.
What relief means
MCA relief is aimed at easing the payment load of advances you already have, so the business can keep running at a pace it can sustain. It is a different thing from taking a new advance. What it looks like depends on the balances, the payment schedule and your bank statements, which is why we ask to look at them before saying anything specific. It is not a promise of a particular reduction, and it does not suit every situation.
If the business is fundamentally healthy but the payment structure is wrong, relief is worth examining. If the revenue base has gone, the first conversation is different.
What to gather
| Item | Why it matters |
|---|---|
| About three months of business bank statements | Shows deposits and every daily or weekly debit |
| List of current advances | Who holds each one, the payment schedule, approximate balance |
| Slow-week versus busy-week deposits | Shows how heavy the payment is at its worst |
Do not stop payments on your own. Share the full picture with the application instead.
Where to go next
We consider FICO scores of 500 and above, require no tax returns, and use a soft credit pull on a five-minute application. Funding ranges from $25,000 to $5,000,000, and sole proprietors can apply. If you want a new product rather than relief, compare working capital, a business line of credit, term loans, or revenue-based financing. Read about merchant cash advances if you are still deciding on one. The lower-credit page may also help. Otherwise, apply here.