My business is not dead. We have real revenue and a large receivable, but the MCA payments are choking cash flow. Before I take another MCA-style product, I want to know whether I might qualify for cheaper financing. What would a real lender look at, and what would stop me from getting a term loan or line of credit?
Real revenue and a meaningful receivable can help, but lenders will also look at bank balances, overdrafts, tax returns, credit, time in business, profitability, existing UCC filings, current debt service, and whether the receivable is collectible. The MCA payments and UCC filings may make underwriting harder because they reduce available cash flow and may cloud collateral. Still, it is worth checking cheaper options before signing another high-cost contract. Prepare bank statements, a debt schedule, receivable documentation, tax returns, and payoff letters so a lender or advisor can evaluate the actual path.