April 21, 2021

There are times when carefully planned merchant capital advances (MCA) can help a business through a challenging time. The problem is many business owners become dependent on MCA’s and find their business in a deeper cash flow problem than when they started. They are paying back the MCA with daily ACH withdrawals, short payback periods and excessive costs. They struggle to get their business back on track and lack the understanding or support to figure a way out. Businesses dependent on MCA’s understand my comments. There are no quick fixes to reverse the process because the need for a MCA identifies a potential issue in the business. But with a solid business model, disciplined improvement plan, understanding financing options and relentless focus on sales the process can be reversed. There are more private lenders in the market than ever before funding small and medium businesses. A number of these lenders operate through a trusted network. They understand the problem of a business dependent on MCA’s and provide an interim financing solution. This allows the business to execute their improvement plan with more favorable payment terms and lower costs. Then once the business is back to health they can look at more traditional financing options. Terce Solutions LLC works with companies to develop the improvement plan and identify other potential financing options. Contact: jon@tercesolutions.com