Short answer: yes, if you own real estate or meaningful equipment. The loan has to be sized to pay the advances off at closing. Lenders worry about MCAs because daily or weekly payments drain cash flow, and balances can change right up to closing.
What makes it hard
- Payoff amounts move every day, so the closing numbers shift.
- Stacked advances can show up as liens (UCC filings) the new lender has to clear.
- Bank statements show heavy daily debits, which hurts cash-flow underwriting.
Real examples
- A California aerospace prototyping company owed about $420K in advances plus a payroll-tax lien. Refinancing into a bridge loan secured by its $6M building is projected to cut its debt costs by roughly $300K+ a year, with a path to SBA later.
- A Texas manufacturer is retiring an advance from the proceeds of a permanent loan on its building.
What to do
- Get current payoff letters for every advance.
- Use your building or equipment as collateral, not your daily revenue.
- Plan for payoffs changing near closing so the deal doesn't break at the table.
Our team spent years in the MCA industry, so we know how these are structured and how to get out of them.
Related: Term loans and lines · Cash-out refinance
Related case studies
USDA B&I guaranteed loanClosed
From MCAs and a tax lien to a $6.75M USDA loan for a rural industrial contractor
- Loan amount
- $6,750,000
- Property
- Industrial
- Location
- Louisiana
Owner-user bridgeClosed
Cutting $300K+ a year in debt costs for a California aerospace manufacturer
- Loan amount
- $2,750,000
- Property
- Industrial, owner-occupied
- Location
- California
Owner-occupied permanent loanClosed
How a wording problem got a Texas manufacturer declined, and how we fixed it
- Loan amount
- $500,000
- Property
- Manufacturing, owner-occupied
- Location
- Texas
Private credit facilityDid not close
A $10M private credit term sheet for a cannabis grower, and why it didn't close
- Loan amount
- $10,000,000
- Property
- Operating business