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This article is about how you can effectively lower your daily MCA merchant cash advance payments in a safe, and effective manner. By no means is this a bulletproof guide on how to accomplish your goals. Every financial situation is different, and no two situations are alike – just as no two businesses are alike.

Often, many people end up in distress due to their high priced merchant cash advances. The reason these business loans are such a pain is due to the fact they take money from your bank account on a daily basis. If you’re lucky, you may end up getting a weekly, or biweekly payment. Usually this is reserved for “preferred,” merchants who have a good credit score, etc, and can be trusted.

*Keep in mind, that it is much more risky for a merchant cash advance lender to offer a weekly deal, than a daily one. This is because if you default on the lender, you have 5 days to potentially move assets around, etc, before the lender even realizes it. As a result, weekly options are reserved for the most trustworthy merchants.

In the event you need help. Here are some options to lower your daily MCA merchant cash advance payments.

Consolidate your payments 

This is a popular method. It involves getting a merchant cash advance consolidation. It involves combining multiple cash advances into one payment. Usually, it’ll involve a new lender – coming into the picture, and paying off the existing lenders. When you get a merchant cash advance consolidation, you usually end up increasing the term of the loan. In some cases, you can even lower the effective factor rate – which results in higher savings.

This financial tool is particularly effective if the existing lenders you took money from have a “prepayment addendum.” This means the lenders are agreeing to giving you a discount if you pay off the entirety of the loan early. Many lenders offer 30, 60, 90 day pre-payment discounts, which can mean savings off the interest on the loan.

Get a real estate collateralized loan

Also known as a hard money loan, this is a cheaper source of money than a merchant cash advance since you’re attaching real estate assets to the deal. Often, hard money loans come at an APR of 10-12%, in contrast to merchant cash advances that can have an APR equivalent of 50-100%. It’s not uncommon for hard money lenders to offer a term of 1-2 years. Many hard money lenders will offer you 1-2 year term, and allow you to pay off the loan at the end of the term – with one balloon payment that covers principle and interest.

*You can use the hard money loan to pay off your existing merchant cash advances

*If there is a prepayment discount, this can mean huge savings on your merchant cash advances

*Hard money loans typically take 2-4 weeks, in order to qualify and are pretty straight forward

*You usually need a minimum credit score of 600 or above, and must be a US citizen to qualify

Get an SBA loan

This is a bit harder to get. The SBA has stringent requirements on how long you must be in business, your credit score, anticipated use of funds, etc. It’s super difficult, but can be a great type of loan. Often many people get merchant cash advances thinking they’ll be able to later refinance the cash advances with an SBA loan.

Often, many business owners realize the SBA loan is taking simply too long – and end up taking a merchant cash advance because of the huge delays they are facing – and the fact they need the funds NOW.

While SBA loans are an amazing source of cheap funds, they aren’t quick, and aren’t necessarily reliable. On average, SBA loans can take several months to complete. We typically see many businesses run out of time due to the fact these loans are simply taking forever. It’s recommended that you use an SBA loan only if you have “time on your side.”


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