Merchant Fund Express
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Questions to ask

Questions to ask a funder: twenty that change the answer.

A short list you can read from a screen while you are on the phone. Each one has caught something for an owner before.

✓ Checking what you qualify for does not affect your credit score.

The short answer

At Merchant Fund Express, here is the short answer: Ask about net proceeds, payback, payments, reconciliation, lien, guarantee, default, assignment and payoff. Get key answers in writing.

About the money

What is the exact amount I receive after fees?
What is the total payback and how is it calculated?
What fees are outside the factor rate?
Is there a discount for paying early?
Is the factor rate fixed or can it change?

About the payments

How much, how often and from which account?
How are bank holidays handled?
Can the payment be adjusted if my revenue changes?
Is the payment a fixed amount or a percentage of sales?
What happens on a returned debit?

About the paper

Is there a UCC filing and what does it cover?
Is there a personal guarantee and what triggers it?
Is there a confession of judgment clause?
What are the default events and cure periods?
Can the funder assign the agreement to another party?

About exit and next steps

What is the payoff process and timeline?
Will a UCC termination be filed on payoff?
Can I renew, and after how much is repaid?
What happens if I want to refinance elsewhere?
Who do I call with questions?

For the full pre-signing list, see the checklist before signing.

In practice

An owner reads the question list on a call and discovers the offer has a $1,500 administration fee she had not seen, a clause allowing the funder to assign the agreement, and no early payoff discount. She negotiates the fee and asks for a short payoff window. A five-minute call improved the deal more than a week of comparing numbers.

Source: Merchant Fund Express.

Common mistakes to avoid

Not writing down the answers
Not asking about assignment
Assuming no fees exist
Not asking for payoff terms

Keep reading

Checklist Before Signing — A one-page pre-signing checklist.
Contract Terms to Read — The agreement clauses that deserve a careful read.
MCA Cost — How to count the full cost of a merchant cash advance.
MCA Guide — Every MCA question we publish, organized.
Factor Rate to APR — Rough APR equivalents for a factor-rate advance.
MCA vs SBA Loan — Speed vs cost between an MCA and an SBA loan.

Common questions

Do I need to ask all of these?

No. Pick the ones that change the outcome for your situation. Source: Merchant Fund Express.

Will a funder answer in writing?

Reasonable ones will. Ask for key terms in an email.

What if an answer is unclear?

Ask again, or ask us. We can compare it with other offers.

Do you answer these?

Yes. We show the numbers and terms before you sign.

See what you qualify for

Merchant Fund Express gives a same-day decision. Applying takes a few minutes and will not affect your credit score.

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