The MCA Suite team is pleased to introduce the following enhancements made during February 2014:
MCA Suite now has three options for letting users determine a merchant cash advance deal’s estimated turn (the anticipated number of days required for the deal to be repaid) and daily collection rate (the daily amount paid by the merchant to the funder).
1. Users can choose to manually enter the estimated turn and expected daily collection amount. This means MCA Suite will not calculate these values.
2. Users can choose to let MCA Suite calculate the “estimated turn,” which is determined by the payback amount divided by the expected daily collection amount. The expected daily collection amount is determined from the daily amounts listed for multiple collection methods – i.e., using ACH and Lockbox.
3. A user can choose to enter the “estimated turn” days to tell MCA Suite that he/she wants the deal to be repaid in 90 days, and then let MCA Suite calculate the expected daily amount. The equation to calculate the expected daily amount is the payback amount divided by the estimated turn.
MCA Suite has added an Analytics module to help our clients calculate a deal’s internal rate of return (IRR). The IRR is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the economic rate of return (ERR) or the discounted cash flow rate of return (DCFROR). In the context of savings and loans, the IRR is also called the effective interest rate. The term “internal” refers to the fact that its calculation does not incorporate environmental factors (e.g., the interest rate or inflation). Finance professionals use IRR to measure each merchant cash advance’s actual return on investment.
This Analytics module is an additional feature intended to enhance the value of MCA Suite for new and existing customers; as such, the Analytics feature is available at an additional cost. Please contact us to learn more about our Analytics module and pricing. The MCA Suite team will continue to work on additional Analytics features in 2014.
We are working on many features scheduled to be released in March 2014. Please stay tuned to our blog and social media handles to stay informed of the latest developments with MCA Suite.