I took a merchant cash advance eight months ago when I was desperate. The factor rate was high and the daily ACH payments hurt, but I have paid the balance down and revenue is better now. My credit is not perfect, but the business looks stronger than it did when I signed. Is it realistic to refinance this into a term loan or line of credit?
It may be realistic if the business has stabilized enough for a real lender to underwrite it. Expect lenders to look at revenue consistency, bank balances, overdrafts, credit, tax returns, time in business, existing UCC filings, and how much MCA debt remains. The daily withdrawals themselves can be an obstacle because they make cash flow look weaker. Prepare a full debt schedule, recent bank statements, payoff letters, and a clear use of proceeds. Compare offers by total cost and payment burden, not just whether they can fund quickly.