Multiple advances
Two or three advances at once is common, and it is also where cash flow gets tight. Here is how to see the real total and what your options are.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, here is the short answer: Several advances add their payments together, and the combined share of revenue is the number to watch. Consolidation or a buyout usually simplifies it.
The first step is a single page that lists every advance: funder, remaining balance, payment amount and whether it is daily or weekly. Convert each to a monthly figure and add them up. Most owners find the total is higher than they felt it was.
| Advance | Payment | Per month | Balance |
|---|---|---|---|
| Advance A | $350 daily | $7,595 | $21,000 left |
| Advance B | $900 weekly | $3,870 | $14,500 left |
| Advance C | $180 daily | $3,906 | $9,200 left |
| Total | $15,371 a month | $44,700 left |
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
If monthly deposits are $60,000, that illustration is about 26% of revenue committed before rent, payroll and inventory. That share is why the third advance usually feels harder than the first two.
Replace several advances with one payment, often weekly. See MCA consolidation.
If the balances total $100,000 or less, a buyout can pay them off. See MCA buyout.
One funder collects from a single account and distributes the payments. See reverse consolidation.
If one advance is nearly paid, finish it before taking anything new.
Limits on this site: up to two current positions on the revenue-based tier. See position limits.
A contractor carries three advances and feels each is manageable. Added up they are $15,400 a month against $60,000 of deposits, 26%, before payroll. A consolidation into one weekly payment drops the monthly outflow by about $7,000 and extends the term, and the account stops going negative on Mondays. He still owes roughly what he owed, just on a pace the account can hold.
Source: Merchant Fund Express.
Up to two current positions are allowed on the revenue-based tier. With more, the better route is usually consolidation or a buyout. See funding with three open advances. Source: Merchant Fund Express.
Not always. It usually lowers the payment and stretches the term. Compare the total you will pay under the new facility with what is left.
Taking additional advances on top of existing ones. See stacking. That is how Merchant Fund Express reads it on a real file.
List every advance and its balance, then call us. We can show what a refinance would do to the payment before you apply.
Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.
