The MCA deal lifecycle, from lead to renewal

An MCA can go from a first call to money in the bank in two or three days, and many do. The speed hides how many hand-offs there are. Each stage below has a clear exit condition, and most lost deals die waiting at one of them.

Inbound leads go cold fast, so the first call should come within minutes. On it, the rep pre-qualifies on five things: monthly revenue, time in business, industry, existing advances and the amount needed. A merchant who passes signs an application, which also authorizes the credit pull.

Then the stips: usually three to six months of business bank statements, an MTD statement, the owner's ID and a voided check, with processing statements for card-heavy merchants and payoff letters for consolidations. Chasing documents is where most of the days go. A file missing one statement page will come back from every funder.

Before anything goes out, a processor works the statements: true revenue, average daily balance, NSFs, negative days and existing positions. That analysis decides which three to five funders fit. The submission package goes to each, and responses come back as offers, requests for more stips, or declines with a reason.

The rep lays the offers side by side for the merchant, who picks one. The funder then sends the contract, with the state disclosure where one is required, for signature. Final stips often appear here: an updated MTD, a bank login, proof of ownership.

Before wiring, the funder runs a verification or funding call with the owner: who they are, that they understand the payback, payment and frequency, that the bank account is theirs, and that they have not taken another advance since applying. Owners who do not pick up, or who give answers that contradict the application, stall the deal at the finish line. Brief merchants on the call in advance.

Funded means net funding has gone out and the broker's commission is now receivable, usually paid within days and subject to clawback for an early default. Then the advance is serviced: remittances come in daily or weekly, and the funder tracks performance.

Once a merchant has paid in enough of the payback, commonly 40 to 60%, funders will consider a renewal: a new advance that pays off the remaining balance and puts fresh cash in the account. A merchant who paid well is the easiest deal a broker places, which is why funders also call them directly. Tracking paid-in percentage is how a broker gets there first. The renewal lesson goes deeper.

Ferrylend follows this lifecycle closely. Leads come in by import or your application link and convert into deals. The deal pipeline runs from App In, Collecting Docs through Offers In and Contracts Signed to Funded, with days in status on every card and stips tracked per deal. Lender matching and submissions handle the send, the offer calculator handles the comparison, and the renewals list shows who is eligible now, within 30 days or later.