Tutorials & Guides
Step-by-step guides for the MCA process
Tutorials & Guides
MCA Application Process
- 1Gather Documentation
Collect bank statements, tax returns, and business documentation. Ensure all records are current and organized.
- 2Compare Providers
Research and compare multiple providers using our comparison tools. Focus on rates, terms, and requirements.
- 3Submit Applications
Complete applications accurately and thoroughly. Be prepared for follow-up questions.
- 4Review Offers
Carefully evaluate all terms and conditions. Calculate total costs and verify payment schedules.
Understanding MCA Calculations
Factor Rate Calculation
Example:
- Advance Amount: $100,000
- Factor Rate: 1.20
- Total Repayment: $100,000 × 1.20 = $120,000
- Cost of Capital: $20,000
Payment Calculation
Example for Daily Payments:
- Total Repayment: $120,000
- Term: 6 months (approximately 126 business days)
- Daily Payment: $120,000 ÷ 126 = $952.38
Pro Tips
Application Tips
- Submit applications early in the day
- Have all documents ready beforehand
- Be prepared to explain any unusual transactions
Negotiation Tips
- Ask about early payoff discounts
- Compare multiple offers
- Request fee waivers for strong applications