Banana Exchange's MCA Program

Banana Exchange brings value and business expertise to the MCA industry by offering MCA funders a strategic partnership driven by access to long term funding. Our funding program is based solely on the MCA funders’ receivables (RTR). No financials or personal guarantees required.

How it Works

You provide Banana Exchange with a list of deals whose RTR Banana Exchange will factor.

We evaluate the list and connect to your ACH provider to ensure the deals are collecting.

We approve some or all of the RTR (see Eligible RTR below)

The RTR we factor continues to collect directly into your bank account as before. So, if it gets too low or has too many defaults, you will need to provide us with new RTR in its place

We advance 25% of the Eligible RTR amount, as a factoring transaction (not as a loan). For larger clients the advance can be higher.

  • Example:
  • You have $4M RTR on the books that Banana Exchange finds eligible (see Eligible RTR below)
  • We factor the $4M and advance 25%, i.e., $1M by direct wire
  • Our fee is 15%, i.e., $150K over 12 months
  • You repay the $1M + $150K fee, in 12 monthly installments of $95,833

Advantages

Benefits MCA funders of all sizes

From seasoned MCAs with over $50M RTR, to new starters with $500K.

Fast funding

Our onboarding process is very simple, requires no financials, personal guarantees or complex underwriting. It is usually completed within 5 business days.

High flexibility

Once onboarded, you can draw funds up to twice a month, depending on your cash flow needs. You never hold unneeded excess cash. You can always draw more funds as needed.

Enabling a positive growth cycle for your business.

Banana Exchange grows with you. As you generate more RTR, Banana will provide you with an increasing amount of funds.

Prerequisites for Funding

  • You are a direct MCA funder and own some RTR originated from merchant cash advance deals funded with your own capital
  • You collect your RTR mostly via ACH transactions (daily or weekly)
  • You have no UCC-1 filings on your RTR assets
Under certain circumstances, we may be able to work with MCAs that don’t adhere to one or more of these prerequisites – contact us for more information.

Eligible Receivables (RTR)

Banana Exchange re-factors your RTR according to these criteria:

  • 01.

    The RTR must be backed by proper documentation – i.e., merchant cash advance application and contract.

  • 02.

    The RTR must exhibit relatively consistent ACH daily or weekly payments. Defaulted deals, deals that are collected outside the ACH, or deals that have many incompletes ACH transactions are not eligible.

  • 03.

    The RTR batch must not be too concentrated in a certain state or industry. If over 25% of your batch consists of deals from merchants in a certain state or industry, Banana may only accept a certain subset of those deals.

  • 04.

    If the current balance of an eligible deal is over $70K, Banana will factor it, but only recognize the first $70K. So, if you have 10 deals, each with a current balance of $100K, Banana will recognize them as $700K, meaning you will be eligible for $175K in funding (25%).

  • 05.

    If several eligible deals are with the same merchant or same owner, they will all be placed under the same $70K umbrella.

Interested In Hearing More?

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