How a good business ends up here
Irvine has a reputation for a strong, fast-growing economy and has been rated one of the top cities for start-up businesses. That reputation brings a lot of young companies, and young companies often borrow fast. A merchant cash advance can arrive quickly and be repaid from daily or weekly receipts, which suits a moment of growth. The trouble comes when growth pauses and remittances do not.
A new contract is delayed, a customer pays late, hiring runs ahead of revenue. The remittance continues. A second advance is taken to cover the first. A business with real customers and real revenue can end up spending most of its deposits on advance remittances.
Signals worth acting on
- Total remittances take a growing share of monthly deposits.
- You use new funding to cover existing remittances.
- Payroll, rent or taxes are late because remittances come first.
- You are saying no to new work because there is no cash for materials.
One of these is a bad month. Two or more is a pattern, and patterns are better addressed by structure than by hope.
What we mean by MCA relief
MCA relief is a funding option intended to ease the load that daily or weekly remittances place on cash flow, changing what you carry into a shape that fits what the business brings in. It does not promise that what you owe disappears, and what is available depends on your bank statements. We do not give legal advice; consult an attorney about any dispute with an existing funder.
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 five-minute application uses a soft credit pull; sole proprietors can apply.
What to gather before you apply
- Three months of business bank statements.
- A list of the advances you hold, with the daily or weekly remittance on each.
- A short note on why cash flow tightened, such as a late client, a delayed contract or growth that outran revenue.
- Your monthly fixed costs, so the review can see what is left after remittances.
The application itself takes five minutes. Having these ready makes it faster and more accurate.
Calculate your ratio first
Add up the remittances you make in a month and divide by your monthly deposits. For illustration only, a services company that deposits $110,000 and remits $34,000 is sending nearly a third of its deposits to advances; with payroll and rent on top, little is left for the business itself. That is an example, not a benchmark. If your own ratio is high, apply.
See also merchant cash advance, revenue-based financing and Orange County.