Banana Exchange offers funding to MCA companies that are using the Banana Exchange software platform and for those who use other platforms as well. We have API capability.

The funding is provided to MCA providers with equity of above $500,000 Right to Receive (RTR) in their portfolio.

The MCA provider has to be in business for at least 1 years and demonstrate a portfolio default ratio of less than 10%.

MCA providers often encounter a limited availability to credit while striving to secure larger inventory and new clients.  This creates a need for additional sources of funding, to increase working capital and fulfill the positive growth.  The short-term funding needed to facilitate expansion or meet seasonal cash flow needs is not readily available from traditional lending sources.

Banana Exchange has developed a new business strategy. With minimal paperwork involved in comparison with a bank loan and most importantly; no personal or corporate guarantees are needed. In addition, turn-around times are significantly faster, thus eliminating the lengthy re-application process.  Banana Exchange possesses the capabilities to provide initial funding usually within 10 business days.

Today, large and frequently unanswered requests to meet the capital needs of this largely overlooked sector of the business community.  Unlike banks and finance companies, Banana Exchange is not concerned, in any way, with the credit or balance sheet of their clients.

Banana Exchange management has over 30 years experience in specialty financing. They successfully funded in excess of several billion dollars to growing companies and assisted in their cash flow solutions.

 

Prerequisite for Funding

Banana Exchange funds based on the creditworthiness of your RTR and not your own.

The MCA provider has to be in business for at least 1 years and demonstrate a portfolio default ratio of less than 10%.

We will create a program structured just for you to achieve the highest level and most efficient way to fund your needs.

 

Merchant Cash Advance Company Factoring Program

Factoring  is a financial transaction in which a business sells its accounts receivable, invoices, to a third party (called a factor) at a discount.

Since MCA providers are purchasing a portion of the merchants future sales (RTR) it is considered factoring. Therefore, merchant cash advance companies are not bound by state usury laws that limit lenders from charging high-interest rates.

Many merchants have cash flow that varies. It might be relatively large in one period, and relatively small in another period. As a result, merchants find it necessary to maintain a cash balance on hand and to use such methods as factoring.

Factoring their future sales enable them to cover their short term cash needs in those periods in which these needs exceed the cash flow.

 

Factoring vs Lending 

MCA financing could be provided through either loans or factoring  transactions.  However, lending – including commercial lending – is subject to licensing and usury laws in some states.  These laws would delay entry into the market (while awaiting licensing approval) and could reduce yields on the product.  Traditional factoring, however, is subject to neither state licensing or state usury laws, making it the preferred model for this business.

Since MCA providers are factoring their merchants RTR we have decided to factor the MCA companies as well. It is easier and faster.