Our service financing programs have some of the best rates in the industry. Below are just a few service businesses MCC has worked with recently:
Merchant: Marine Construction
MCA Amount: $250,000
Highlights: Merchant Cash and Capital is advancing $250,000 to a multi location marine construction business located in Texas and New York. This MCC premium merchant is a well respected player in the industry, and the company has been collaborating with reputable businesses such as Con Edison and NY Power since 1995. Unlike most businesses, Hurricane Sandy actually benefited the marine construction company’s gross sales as anything that was destroyed on the water front needed its assistance. The merchant would like to use its MCC funds to finance the purchase of a new crane and as working capital. Though the industry is not a business MCC typically funds, the Committee was confident that the merchant would pay back on time due to the company’s time in business, documentation of contracts lined up, and its positive cash flow.
Merchant: Music School
MCA Amount: $65,000
Highlights: Merchant Cash and Capital advanced $65,000 to a music school located in New York. The widely known institution has been in operation since 1991 and houses a staff of 25 instructors. This MCC premium merchant processes an average of $50,000 a month in credit card sales and an average of $90,000 a month in gross sales. The business faces some seasonality in the summer while their target customers (children) are away at summer camp. The merchant plans to use its funds to continue some interior upgrades and renovations within the school. This merchant has worked with MCC in the past and we are glad to help this music school continue expanding their institution.
Merchant: Dry Cleaning
MCA Amount: $150,000
Highlights: Merchant Cash and Capital advanced $150,000 to a large dry cleaning business located in Massachusetts. This merchant qualified for MCC’s B2B cash advance program because while the business is not involved in credit card sales, it had consistently high bank deposits. The company’s bank accounts have large average daily balances, including as many as 15 deposits per month. The business has been operating since 1997 from a large location consisting of facilities for labor and storage. The merchant owns 10 trucks for pickup and delivery, and their extensive client base is predominately hotels and restaurants. However, the business is highly seasonal with some struggles in the winter. The business has additional debt from three outstanding bank loans. MCC’s Credit Committee and the assigned underwriter worked out numbers with the additional debt and the gross reserve percentage still worked within MCC’s underwriting parameters (MCC will only take a limited percentage of a merchant’s gross sales so as to avoid “squeezing” the merchant.) The merchant would like to use the business financing to further expand his business as he is in the process of obtaining new contracts in a nearby town. Given the use of proceeds, strong bank accounts and long time in business, the deal was ultimately approved by the MCC Credit Committee.
Merchant: Night Club
MCA Amount: $50,000
Highlights: Merchant Cash and Capital provided a $50,000 business cash advance to a nightclub in New Jersey. This business was built in May of 2012 but the parent company has been in operation since 2010. The nightclub processes an impressive $109,000 a month in credit card sales and grosses $160,000 in monthly total average sales. The merchant plans on using the funds for renovations to its basement. The nightclub’s current occupancy is 300 people but with more space, the business could raise its occupancy levels to a whopping 800 people. The raised capacity will increase revenue and help this young business grow. The merchant initially invested $300,000 of his money into the business which leaves no debt on the LLC.
Merchant: Cruise Line
MCA Amount: $130,000
Highlights: Merchant Cash and Capital is advanced $130,000 to a cruise line based out of New York. This business has been in operation since 1993 and has done tremendously well on MCC’s premium merchant programs. This will be the business’s third cash advance with MCC and it plans to use the funds as working capital. The merchant has a positive history of paying back previous cash advances to MCC; in fact, the merchant was thirty percent ahead of pace on its last advance. However, this deal was not without its flaws. The business had a tax lien but is current on its repayment plan and the business is going out of season. However, deposits for summer bookings steadily come in until they are in season again. This business did $1.8 million in its 2011 sales and MCC is convinced that the business will continue to grow.
Merchant: Home Contractor
MCA Amount: $150,000
Highlights: Merchant Cash and Capital advanced $150,000 to a home contractor in Florida. The business constructs model homes to showcase to potential home buyers and then builds the chosen model for its clients. The model homes are fully furnished to give clients a sense of what their own homes could look like if they choose to remodel or to purchase. These homes cost between $750,000 to $1 million to complete. The business caters to gated communities in Florida. The merchant has two locations for this operation: a design center and an office for sales representatives. The merchant qualified for MCC’s B2B Cash Advance Program and plans to use the funds for working capital. The business needs cash up front to lock in cheaper labor in anticipation of construction contracts. Though this is a unique industry and a different business concept than MCC traditionally provides funding to, the business is profitable, and the merchant has a good use for the financing.
Merchant: Window Treatments Company
MCA Amount: $150,000
Highlights: MCC advanced $150,000 to a window treatments company located in Georgia under MCC’s B2B Cash Advance Program. The company has been in operation since 1986, and the current owner took over 11 years ago. The business is 70% business to business and 30% direct to consumers. The operation does sales and installations for their clients. The business has a prominent name in the southeast, and one of its customers includes a university in the surrounding area. The company took a hit in 2011 with a $143,000 loss. The business underwent some restructuring and pinpointed which sales offices across the country were underperforming. Financials show that the business is back in the black, and financial improvement has been gradual since last year’s loss. This MCC diamond merchant is planning to use its funds for working capital and to purchase some additional inventory for upcoming projects.
Merchant: Wedding Business
MCA Amount: $100,000
Highlights: Bells rang as Merchant Cash and Capital advanced $100,000 to a wedding business located in Arizona. The venue has hosted affairs up to 2,000 guests and hosted up to 160 weddings annually. The merchant would like to use its advance to build out another site on its property, which will allow it to double its revenue. With a new site, the business will be able to perform multiple ceremonies simultaneously. The business has a balance with another cash advance company, and will be using part of its MCC business cash advance to pay off the balance. MCC’s Credit Committee deemed this to be a good use of proceeds and with an additional site; it will be a profitable expansion for the business. The merchant processes $50,000 a month in credit card sales, and generates $125,000 in gross monthly sales. Though the business is seasonal, bank deposits are consistent due to twelve month plans the merchant offers its brides and grooms. This will be the merchant’s first cash advance with Merchant Cash and Capital.
Merchant: Bar, Lounge and Concert Venue
MCA Amount: $45,000
Highlights: Merchant Cash and Capital advanced $45,000 to a busy landmarked business in Pennsylvania. The location features a bar and lounge that also serves as a concert venue. It is known by locals to be a staple in the downtown nightlife. The venue offers karaoke at night and showcases musicians ranging from small local bands to major record labels. It offers indoor shows, as well as outdoor festivals when the weather permits. The merchant processes an average of $27,000 in monthly credit card sales and averages $125,000 a month in gross sales. The business has a huge online presence complete with recommendations and reviews. In addition, it also works with various online ticket portals such as ticketfly.com and ticketmaster.com. This deal landed a spot in MCC’s Credit Committee as the business is one month behind on its mortgage payments, and the mortgage matures in the near future. However, the assigned underwriter on the deal spoke with the mortgagee and was satisfied with the bank’s future plans to refinance the mortgage. This popular music venue has been in business since 2001, and has been MTV rated in the past. This will be their first merchant cash advance with Merchant Cash and Capital.
Merchant: Air Soft Facility
MCA Amount: $150,000
Highlights: MCC agreed to fund an indoor air soft (similar to paintball) facility on Long Island. The business has been operating for four years and was started because the owner wanted to be able to play with his sons. So what started as a hobby has now grown into a large, profitable business. This was a $150,000 advance that was challenging because the merchant had a $75,000 balance with another provider. However, the merchant needed more money to purchase inventory in bulk (guns and pellets) which is sold from a retail facility on site. While such a large balance was a cause for concern, the merchant had strong credit and bank statements and a good use of proceeds. Moreover, the business is seasonal (best in Q4 and Q1) and was heading into season. While the deal was submitted as a “bank only transaction,” MCC was able to use its Diamond program to convert the deal into a traditional cash advance.
MCA Amount: $40,000
Highlights: Merchant Cash and Capital provided a $40,000 business cash advance to a high end photography studio located in Colorado. The business caters to a clientele looking for very high end, luxurious studio portraits, many of a somewhat risqué nature. The studio offers clients the ability to book photo shoots for professional portraits, wedding pictures, artistic nudes or other provocative photos. The studio has been in business since 2007, and processes an average of $37,000 in monthly sales. One of the issues with this deal was that the business owner had filed for bankruptcy last year, but it has since been discharged. During the merchant interview, the merchant explained to the MCC underwriter that the bankruptcy filing was wholly unrelated to the business, but simply a result of some poor personal decisions. The MCC underwriter also found the proposed use of proceeds to make sense in helping grow the business; the funds to produce and market the merchant’s own line of lingerie. While the recent bankruptcy caused some concern and the industry was unique, MCC was pleased with the processing consistency and the use of proceeds and approved the transaction. In the cash advance industry, personal bankruptcies are not that unusual. Unless the filing is extremely recent or the debtor has failed to receive a discharge, a chapter 7 filing by itself is not generally a disqualifying factor. It’s just another subject to be covered in the merchant interview.
Merchant: Printing Company
MCA Amount: $96,000
Highlights: Merchant Cash and Capital provided $96,000 to a printing company in Virginia on our new B2B Cash Advance Program. MCC recently launched this program in which the advance amount is determined by the merchant’s total monthly deposits. MCC will then receive the amount of future receipts it is purchasing by taking a percentage of the merchants total deposits, as opposed to just credit card receipts. The program works well with merchants doing little or no credit card transactions. In this case, the business had been operating since 1992, and was highly profitable. The bank deposits were strong, with monthly bank deposits totaling close to $400,000. In addition, the business was actually taking less in their advance than it qualified for, which is always a good sign. The company manufactures catalogs, envelopes, and various marketing materials. Customers also include big box outlets such as Staples. The MCC Diamond merchant is a seasoned businessman, and demonstrated thorough industry knowledge. He successfully navigated his company through the troubled economy of the prior few years. The underwriter for this deal believes that 2012 will be another profitable year for the business and recommended the deal for approval.