MCA Loans: When To Sign

Here is when I would take out an MCA loan.  

There is a gun to my head, and I am absolutely sure I will die of a heart attack tomorrow.  OK I’ll sign – no personal guarantee, Right?

Let’s understand what happens with an MCA loan.

• The MCA Lender will draw funds from your checking account daily or weekly.

• Their APR will be extreme.  Your checking account WILL wither to nothing.

• When they exhaust the account, they will file notices of payment demand to every one of your customers.

• Your customers will likely withhold payment until they know they are fully protected.

• At this point, you will have no income for payroll, vendors, landlords or counsel.

This is a scenario that occurs all too often. Read more about the dangers of these loans in this New York Times article from December of 2024. 

I’m Mike Johnston with US Invoice Funding – We fund our clients invoices promptly.  They have cash to make payroll, pay their bills on time, and capitalize their growth.  In fact, if our clients don’t grow, then we have not done our job properly.

So – we know why you need the cash – you have payroll – and your customers are not paying you on time – it takes cash to survive, and you don’t have it. You need a factoring program not a shark’s deal.

This is the stress that sinks most small businesses – We’ll keep you upright and on the surface.

Watch the corresponding video to this blog post on YouTube!