Out of the MCA spiral, into real structure.
Merchant cash advances solve a cash crunch by creating a worse one: daily debits, triple-digit effective rates, and stacking that eats the margin the business needed to recover. Refinancing out is possible, but only for operators who show up to lenders as a packaged file instead of a distressed borrower.
Why MCA refinancing applications fail
Lenders decline MCA-burdened files for missing documentation more than for the debt itself: no clean financials, no receivables aging, no story for how the stack happened and why it will not recur. The debt is visible; the credibility is not.
What a fundable exit file contains
The same packaging discipline as an acquisition raise, pointed at debt.
- Clean financial statements and a receivables picture lenders can verify
- A payoff schedule for every advance, with real balances
- DSCR analysis showing the refinanced structure services comfortably
- A use-of-funds narrative that ends the stacking cycle
Structures that replace the stack
Depending on assets and cash flow: term loans, asset-based lines, receivables facilities, or equity through a compliant vehicle where debt alone cannot carry it. On qualifying deals with real estate attached or unencumbered cash flow and a creditworthy sponsor, our written service agreement carries a 50 percent loan-to-cost debt floor from interested debt providers.
Scope of work
Straight answers.
The questions dealmakers ask about this before they book.
That is the usual goal: one facility retiring the full stack. It requires exact payoff balances per advance and a file that shows the refinanced payment is serviceable.
Yes, packaged properly. Lenders price risk they can see; the failure mode is an unpackaged application, not the existence of the advances.
Blended structures exist: partial refinance plus investor equity through a compliant SPV. The strategy call maps which combination your numbers support.
Here is how we structure it.
Entity, offering documents, CFA-built model, data room, then debt and equity introductions. Flat fee, no percentage of your raise. Map your deal on a strategy call.