As we have discussed before in this blog, a merchant cash advance (MCA) is a type of cash advance for small businesses that cannot obtain traditional credit. The advancing company gives the cash to the debtor in exchange for a fixed percentage of the debtor's daily...
When the lender in a merchant cash advance or other loan uses the debtor's accounts receivable account as collateral, it must submit a form called the UCC-1 to the local secretary of state's office. This "perfects" the lien and makes it easier for the lender to seize...
A merchant cash advance is not a traditional small-business loan issued by a bank or other lender, which the business pays back in monthly installments plus interest. A business loan is typically secured by a major asset your business owns, such as its building....
A UCC lien is a very common result of a business taking out a merchant cash advance (MCA) or other secured loan. The lender files a UCC report to let other potential creditors know that the business has already leveraged some or all of its assets. While it is not...
A business owner considering a merchant cash advance (MCA) must know what terms the lender is offering before they can decide whether to proceed. After all, you would not want to walk into an MCA agreement blind about what percentage of your credit card transactions...
Most lenders prefer to secure their loans against something substantial that belongs to the borrower. A mortgage is secured by the property being purchased, an auto loan is secured by the vehicle and so on. So it is with most business loans. The lender wants some...
Like most small business owners, when you need to expand or pay for the upkeep of your premises, you need to borrow money. However you might be reluctant to apply for a loan at a traditional bank for various reasons. One alternative out there is the merchant cash...