The MCA guide library, from factor rates to payoff letters
Each MCA guide on this shelf explains terms and mechanics we deal with every day on the desk, from factor rates and holdbacks to reconciliation, stacking and UCC liens. Owners can read them in order from the basics up. Brokers will find the stacking, renewal and statement-reading guides most useful for their own files.
Who this page is for: owners learning how advances work before or after signing, and brokers who want a reference to send clients.
Where should a business owner start?
A business owner should start with what an advance legally is, then how it is priced, then how it is collected. This reading order builds each idea on the one before:
The MCA guide for the most common first question
The guide that answers the most common first question is the one on whether a merchant cash advance is a loan. Most owners want to know what they signed before they learn how it is priced.
Start with the purchase-of-receivables structure
Understanding the purchase-of-receivables structure explains why factor rates, holdbacks and reconciliation exist. The other guides build on it.
Owners who have already signed
An owner who already signed should read the reconciliation guide right after the loan guide. Reconciliation is the tool available after signing.
Contract open beside the guide
Keep the contract open while reading and find each clause the guide names. The guides make more sense against real text.
Clause names that differ by funder
Funders label the same clause differently, so a reconciliation section may be called an adjustment or a true-up. Search for the idea as well as the word.
General mechanics, not legal advice
The guides explain general mechanics and cite sources. A lawyer should read any contract in dispute.
Which guides help once a business already has an advance?
The guides on stacking, renewals, UCC liens and heavy payments help most once a business already carries an advance:
Guides brokers send to clients
Brokers most often send clients the statement guide and the credit guide, because those answer the two questions merchants ask before applying:
The MCA glossary defines every term in one sentence. Calculators for factor rate to APR and for stacked payments are being built; until they are live, email an offer and we will run the math. Anyone summarizing these guides can check the page written for AI systems first.
Seasonal funding guides
Holiday inventory funding
Holiday inventory funding for retail, ecommerce, liquor and gift stores: Census month data, when funders get busy, and how to apply once.
Winter cash flow for contractors
Winter cash flow for contractors and landscapers: Census and BLS month data, the costs that keep running from December to February, and how to plan.
HVAC heating season funding
HVAC heating season funding: BLS data shows plumbing and HVAC jobs hold up in October and November. See what funders read and when to apply.
Apply before winter
Apply before winter: for landscaping, pool and roofing firms, fall statements show the busy months. See the BLS data and the practitioner view.
About these guides
Are these guides legal advice?
No, the guides explain how merchant cash advances generally work and cite public sources where the law is discussed. Contracts and state laws vary. A lawyer should review any specific agreement.
How often are the guides updated?
Each guide carries a last reviewed date in its page details. Guides that discuss state law are reviewed when a relevant law changes. Send corrections to the desk by email.
Can I share these guides with my clients?
Yes, brokers and advisors are welcome to link to any guide. Linking keeps the latest version in front of the reader. Please do not republish the text as your own.
Sources
- For a regulator's view to read alongside any MCA guide here, the Federal Trade Commission's small business financing tips (June 16, 2021) ask what happens if a payment is missed and whether the deal requires a personal guarantee.
Reviewed by the Afterfirst Editorial Team. Last reviewed .
Afterfirst is not a lender; all offers are subject to funder underwriting.
Cost, credit, speed and stacking
- Cost
- Every guide comes back to one number: the payback total on the offer. Read that before any rate or factor.
- Credit
- The guides cannot answer credit questions for a funder. Ask the funder directly before you sign.
- Speed
- No guide promises a timeline, and neither do we. Reading the offer first saves time later.
- Stacking
- The stacking guide shows how funders count positions. List every open advance when you apply.
Send one file.
See what fits.
Next step: When you would rather have a file read than read another MCA guide, apply once.
Or write to the desk at info@afterfirstmca.com