Recognizing a payment that has outgrown the business
Typical signs: balance dips right before deposits post, supplier bills slipping from net-30 to net-45, and a new advance used to keep up with the old one. The business is not necessarily weak. The repayment rhythm, often daily or weekly, no longer matches how and when customers pay.
The San Jose angle: net-60 customers and daily debits
Wikipedia describes San Jose as a hub of the technology industry, and a lot of small businesses in the city sell to larger firms. Larger customers can pay on long cycles. A supplier invoicing on net-60 terms while an advance debits every business day is an obvious mismatch: the debits keep coming for two months before the cash arrives, and the account must be funded from somewhere else in the meantime.
A picture of the mismatch, for illustration only
These are round numbers, not any real agreement or our terms. A small design-and-build firm sends $45,000 of invoices in a month, but only $15,000 of that is paid inside the month because clients pay in 45 to 60 days. A debit of several hundred dollars each business day continues regardless. Over a month the debits add up to a meaningful slice of the cash that actually arrived, and the shortfall gets covered by delaying a supplier or taking another advance. That is the cycle relief is meant to interrupt.
What relief means here
MCA relief is a reverse approach. Instead of adding more money on top of the advances you already have, the goal is to ease the payment burden of those advances so the business can keep operating. It is not a promise that anything is erased, and we do not set out specific outcomes in advance. What can be done depends on how many advances there are, the amounts and the way deposits actually arrive.
Why timing matters
The earlier the squeeze is addressed, the more options there are. A business that still pays its suppliers on time and has room in its deposits has more flexibility than one that has already fallen behind. If your statements show the first signs, start before they show the last.
A short checklist before applying
- Gather about three months of business bank statements.
- List each advance: the remaining balance, payment frequency and who holds it.
- Note the gap between your customers' payment dates and the debits.
- Identify what changed. A lost client, a slow quarter and a large repair are all legitimate answers.
Related reading
For how advances work in the first place, read about merchant cash advances in San Jose. If what you need is fresh cash on a schedule that tracks revenue, compare revenue-based financing. We consider FICO scores of 500 and above, require no tax returns, and use a soft credit pull. Sole proprietors can apply. Start the application, which takes about five minutes.