Good morning, one of my clients referred an opportunity in Fort Lauderdale, person is purchasing an existing Cafe/Teahouse, that is currently proftitable and needs $120k to buy the business, has a 720 FICO. If any interest please email dmorrison@catalystfc.com and I will make direct introduction, looking to hand off completely. Thanks,
Dean
This should be concerning to all borrowers, not just those who may have skirted the law.
I’ve been there. Payroll was due Friday and cash was tight, so I took four merchant cash advances at a brutal 42% effective rate. It got us through, but there was a far better option I discovered too late.
That option is factoring.
The Real Difference
Factoring is built for one situation: You’ve done the work, invoiced the customer, and they’ll pay in 30, 60, or 90 days. The money is already yours — it’s just not here yet. You sell the unpaid invoice to a factor, get most of the cash now, and the factor collects when the customer pays. No borrowing against future sales. Just fixing the timing on money you’ve already earned.
Merchant cash advances do the opposite. They advance money against sales you haven’t made yet. The cost stacks fast, especially when you take a second advance to cover the first. Same problem on the surface…
It's not every day that a public company takes an MCA, and it's announced to the world.
Well, that just happened yesterday when an announcement was made that the company NextNRG took a $1M MCA from Avanza Capital with a personal guarantee by the CEO of NextNRG.
NextNRG (NASDAQ: NXXT), which essentially is an AI energy infrastructure business, is trading at a whopping $.33 at the close of business July 8th, 2026. It peaked at $64.72 in 10/2021.
Details reported of the 1.499 factor rate, $1 million deal include paying back $1,499,900, remit 25% of daily settlements, which on a weekly payment is an estimated ACH debit of $62,496, and a monthly cap of $268,732, subject to reconciliation.
Use of funds: Enhance liquidity and working capital.
What are your thoughts?
Hi thanks for the post. While this may be solid information, the community members are ALL industry members, so thats who will mostly see your post. You may want to tweak your posts with that in mind.
Also, what company did you have when you took 4 MCAs?