Quick answer: A merchant cash advance (MCA) is not a loan, it's a pre-purchase agreement of a business's future accounts receivable, repaid through a set percentage of daily, weekly, or monthly credit card sales. Private Syndication Club opens MCA investing to both accredited and non-accredited investors, offering fixed and variable rate-of-return options, real-time reporting, and rigorous underwriting designed to pursue above-market returns while managing risk.
What Is a Merchant Cash Advance?
A Merchant Cash Advance is an alternative to a traditional loan. In fact, an MCA is not a loan at all, but a carefully structured pre-purchase agreement of future accounts receivable from the business receiving the capital advance.
How Does MCA Repayment Work?
Recovery of the advanced funds is calculated as a specified percentage of anticipated future sales receivables and is debited from the merchant's daily credit card activity account, in line with the terms of the advance contract, on an agreed daily, weekly, or monthly schedule. Because there's no significant delay in funds recovery, this structure substantially reduces default risk compared to traditional lending.
What Can Investors See Through the MCA Investor Portal?
Private Syndication Club's investor portal is a proprietary online platform giving real-time access to a broad range of data, including deal data, performance, risk levels, and recovery velocities, all available at the investor's discretion through daily reporting.
Who Are Private Syndication Club's MCA Clients?
Clients are typically small- to medium-sized, closely held, family-owned companies that are:
- Experiencing temporary cash flow issues
- Needing liquidity for seasonal business cycles
- Looking to expand or purchase equipment on short notice
- Unable to wait for, or qualify for, traditional bank financing
Why Do Merchants Choose Private Syndication Club for MCA Funding?
- Rapid online access to funding
- A strong personal FICO score but limited traditional banking relationships
- An asset-strong business with fast collateral valuation during underwriting
- A bridge to a cyclical buying season
- A predictable alternative to costly equity financing
- Quick, straightforward documentation and processing
Why Participate in Private Syndication Club as an MCA Investor?
Private Syndication Club levels the playing field by giving both non-accredited and accredited investors equal access to a variety of co-investing and partnering opportunities in the MCA industry, with fixed and variable rate-of-return options. As an innovator in the MCA space, Private Syndication Club combines proprietary processes and unique product offerings with dedicated, robust education programs. The most stringent underwriting algorithms are used to aggressively mitigate investor risk while pursuing above-market rate returns, and an experienced team keeps the application process fast, with a case-specific, personalized approach to matching offers to each client business's needs and growth goals. Above all, Private Syndication Club is built on 100% transparency and personal service, delivering flexible, transparent MCA investment opportunities designed to provide market-outperforming returns while managing risk through aggressive underwriting, prudent credit analysis, and disciplined cash flow management.