For advisors
When your client mentions an advance offer, you have about a week.
For CPAs, bookkeepers, equipment dealers, and commercial realtors: what to say, what to look at, and where to send them.
The conversation
What to tell a client who mentions an MCA offer
Ask for the total repayment, not the rate
Factor rates aren't interest rates. Ask what the total payback is and over how many months. That single number ends most of these conversations on its own.
Ask how many places have seen the file
If they've been shopping for two weeks, the damage is already underway. Every duplicate submission narrows what's left, and they usually don't know it's happening.
Check whether the problem is timing
Receivables gaps, seasonal dips, and inventory cycles are timing problems. Term debt against deposits is a poor instrument for a timing problem and an expensive way to learn that.
Tell them not to sign this week
Urgency is the product. Nothing about a legitimate offer collapses because someone took four days to have it reviewed.
How referrals work
Straightforward, and disclosed
- You send a client, I read the file. If they're not a fit, I tell them that and tell you why — you keep the relationship either way.
- Business-lane clients begin with a paid Capital Position Review. Your client will never be pressured into borrowing, because I'm not paid to place.
- Real estate clients go straight to preapproval at no cost.
- Referral arrangements are documented in writing and disclosed to the client. Nothing about the compensation structure is hidden from the person you referred.
Professionals