Why seasonal businesses feel remittances most
A merchant cash advance is typically repaid through daily or weekly remittances from receipts. In a city with a strong seasonal tilt, that cuts both ways. Huntington Beach, known as Surf City, draws visitors to the water and to shopping centers such as Bella Terra and Old World Village. In peak weeks, receipts are high and remittances are easy to cover. In slow ones, the remittance is the same size and takes a bigger share of what is left.
The risk gets worse when one advance is followed by another to fill the gap. Two or three overlapping remittances can leave a business with healthy sales and a bank balance that never builds.
Reading your own situation honestly
| What you see | What it often means |
|---|---|
| Deposits stay flat but the balance keeps falling | Remittances are taking more than margin allows |
| You borrow in January to cover February remittances | Advances are financing themselves |
| You hold back vendor payments | Vendor terms are paying for your advance |
| You turn away summer work | There is no cash for materials or stock |
If two of these are true, it is worth looking at structure rather than hoping a good season fixes it.
What MCA relief means here
MCA relief, as we mean it, is a funding option intended to ease the load that daily or weekly remittances put on cash flow, changing what you carry into a shape that suits what the business actually earns. It does not promise that what you owe disappears, and what is available depends on your bank statements. We do not provide legal advice; if you have a dispute with an existing funder, consult an attorney.
We fund $25,000 to $5,000,000, with funding in as little as 24 hours after approval. FICO 500+ is considered, about three months of business bank statements are needed, and no tax returns are required. The application takes five minutes and uses a soft credit pull; sole proprietors can apply.
A number to calculate before you apply
Divide your monthly remittances by your monthly deposits. For illustration only, a surf shop that deposits $35,000 in March and remits $9,000 is at about a quarter of deposits; in a $20,000 January the same remittance is closer to half. The ratio in your slowest month is the one that matters. Apply once you know yours.
Related reading: merchant cash advance basics, revenue-based financing and working capital. See also Orange County.