What Is an MCA Buyout and How Does It Work?
A buyout pays off your merchant cash advances and replaces them with one predictable, long-term payment.
A merchant cash advance (MCA) is not a loan — it is the sale of a portion of your future receivables, repaid through daily or weekly debits from your bank account. Because MCAs are priced with factor rates rather than interest rates, the effective annual cost can be far higher than most owners realize.
How a buyout works
In an MCA buyout, a new funding source pays off the remaining balance on one or more of your existing advances. Instead of multiple daily withdrawals, you're left with a single obligation structured over a longer term — often 3 to 10 years — with a weekly or monthly payment sized to your real cash flow.
Who it helps
Buyouts are designed for businesses that took a second, third or fourth position to cover the payments on the first. If your debits consume a large share of daily deposits, a buyout can restore working capital almost immediately.
What we review
We look at your last several months of bank statements, the funders and balances on each position, payoff letters, time in business and overall revenue trends. From there we build a structure that pays off what's necessary and leaves room for your business to operate.
The bottom line
A buyout isn't about adding more debt — it's about replacing expensive, short-term debt with something you can actually live with.