MCA Suite’s core competence is to help merchant cash advance (MCA) funders track the merchant cash advance underwriting process and collections to repay the cash advance. There are two ways a funder can use MCA Suite to track cash advance outflow and collection inflow when a funder makes multiple cash advances to the same merchant:
1. The funder can use MCA Suite’s Deal Refinance module when it supplies additional funding to the merchant — also known as refinancing a deal or deal renewal. MCA Suite’s Deal Refinance approach is to roll the original deal’s (the one being refinanced) amount outstanding balance into a new deal, thus creating a new merchant cash advance contract. By rolling the original deal’s balance into a new deal, MCA Suite will close out the original deal by making it a zero balance. Using MCA Suite’s Deal Refinance module allows funders to keep track of one single MCA contract per merchant.
2. MCA Suite also allows funders to create multiple cash advance deals for a single merchant and track each deal’s collections in parallel with one another. When this approach is used, funders generally have different collection methods for each deal (i.e., the first funded deal will be repaid using ACH and the second deal will be using split funding). Funders using this approach are tracking multiple MCA advances and can view all MCA deals’ metrics under one merchant.
For more details on MCA Suite’s approach on deal tracking and the metrics it provides to funders, visit these two previous posts:
Why Merchant Cash Advance Funders Need MCA Suite
What are the key merchant cash advance metrics?