The Silent Killer of Business Growth: Merchant Cash Advances
Merchant Cash Advances (MCAs) serve a purpose in a cash-flow pinch, but they often come with a hidden cost that can cripple a thriving business. With daily or weekly automatic withdrawals, the pressure on your working capital becomes immense, and the true interest rate—the real APR—can often soar past 180%.
MCAs are fundamentally expensive debt. They drain cash flow, suffocate profitability, and place companies on a treadmill of costly renewals, forcing business owners to constantly search for MCA reverse consolidation or expensive new funding just to stay afloat.
At Growth Funding Group, we specialize in helping businesses exit this scenario permanently. We focus on replacing toxic, high-frequency MCA payments with disciplined, structured, and dramatically less expensive capital.
Our Strategic Exit Solutions for MCA Debt
We spend much of our time engineering sensible, lower-cost solutions for companies burdened by multiple MCAs. Our approach is fundamentally different from expensive reverse consolidation—we underwrite based on your asset value and business stability, not just your daily sales volume.
1. Commercial Second Position Loans (The Quick Fix)
If your business owns valuable commercial real estate, this is often the fastest and most cost-effective way to retire MCA debt.
- The Power of Property: We use the equity you've built in your property to collateralize a second-position mortgage loan. This allows you to raise significant capital without refinancing your primary, low-rate first mortgage.
- Significantly Lower Cost: These loans feature traditional interest rates that are a fraction of MCA costs, providing immediate cash flow relief and a predictable repayment schedule.
2. Term Loans for MCA Takeout
We provide straightforward term loans specifically designed to pay off multiple MCA positions.
- Predictable Repayment: Unlike the aggressive daily withdrawal schedule of an MCA, our term loans offer structured monthly or quarterly payments, instantly stabilizing your budget and freeing up vital operating capital.
- Focus on the Future: By replacing hyper-short-term, high-cost debt with lower-interest-rate term debt, you regain control of your cash flow and redirect funds back into growth initiatives.
3. Hedge Fund Loans (For Large-Scale Payoffs)
For companies with substantial capital needs or an aggregate MCA burden exceeding $8 Million or more, we tap institutional liquidity.
- Large-Scale Liquidity: Our access to hedge fund capital allows us to structure large-volume payoffs where traditional banking solutions fail.
- Flexible Collateral: These sophisticated loans can be collateralized against specialized assets, such as future EBITDA, unique equipment, contractual revenue streams, or other specific asset classes. This flexibility is key to securing the necessary funds to clear massive MCA exposure.
Why Pay 180% When You Can Pay Less?
The math is simple: every dollar you save on predatory MCA interest is a dollar returned directly to your bottom line. Where did we get the 180% APR figure? Here’s a video where we calculated it.
If you are currently sacrificing significant profitability to keep pace with daily MCA withdrawals, it's time for a professional intervention. Growth Funding Group offers the expertise and capital to strategically transition your business from debt dependence to sustainable financial health.
Contact Growth Funding Group today for a confidential review of your MCA portfolio. Let us engineer your exit strategy.
