The seasonal mismatch
Oceanside is a beach city and a tourist destination, according to Wikipedia, and many local businesses live on summer weekends, holidays and event days. An advance is typically repaid through frequent debits that do not follow that calendar. A debit that was easy to carry during a strong June can be a heavy weight in January.
If you took an advance in a busy stretch, sized to those deposits, and the slow months have arrived, this page is for you. For a first advance, see the merchant cash advance page.
Illustration of the squeeze
For illustration only: a surf shop deposits about $4,500 a day in peak weeks and $1,300 in winter. With a $600 debit each day, the payment takes roughly 13% of a peak day and 46% of a winter day. The same obligation, felt completely differently. These figures are an example and do not describe any offer.
Stacking advances makes it harder. A second advance to cover the first leaves less of each deposit for rent, stock and staff.
What relief aims to do
MCA relief is aimed at easing the payment load of advances you already hold, so the business can operate at a pace it can sustain. What that looks like depends on your balances, schedules and statements, which is why we review them first. It is not a promise of a particular reduction, and it does not suit every situation. A healthy business with a mismatched payment is a good candidate for review. A business whose revenue has gone needs a different first conversation.
What to gather
- About three months of business bank statements, with the debits visible.
- A list of your advances: holder, payment schedule, approximate balance.
- A note of your busiest and slowest weeks.
Do not stop payments on your own. Share the full picture with the application.
Why timing matters
Waiting until a payment fails narrows the options. A review that starts while payments are still current can look at the whole picture, including how much of each deposit the advances take, while the business still looks as healthy as it is. Seasonal owners have a particular reason to look early: the slow months will come every year, and an obligation sized for summer is likely to be a problem every winter.
The three items to gather are the statements, the list of advances and a note of your lowest weekly deposit. With those, a review is concrete and quick.
After you apply
We consider FICO scores of 500 and above, ask for about three months of business bank statements, require no tax returns, and use a soft credit pull on a five-minute application. Sole proprietors can apply. If a new product suits better, compare a line of credit, working capital or revenue-based financing. Apply here.