Escaping the MCA Trap: Real Business Term Loans Underwritten by Growth Funding Group
For established small to mid-sized businesses seeking reliable financing, the term "business loan" has become synonymous with frustration. Many companies that advertise competitive business term loans utilize a pervasive and costly bait-and-switch tactic: they quote a low-interest term loan to generate a lead, only to deliver a high-cost Merchant Cash Advance (MCA) once the borrower is inevitably disqualified—a response that is, sadly, a default in the industry.
At Growth Funding Group, we believe established businesses deserve transparent, structured, and affordable debt. We offer genuine real business term loans underwritten directly by our experts, providing critical capital without the financial burden of the MCA model.
The True Cost of the MCA Bait-and-Switch
The Merchant Cash Advance (MCA) market thrives on speed and low entry barriers, but it operates under a drastically different cost structure than a term loan. MCA repayment is based on a daily or weekly withdrawal, calculated using a high factor rate that is deducted directly from daily credit card sales or bank deposits. To learn more about the real cost of MCA’s here is a brief video on the topic. This accelerates the repayment timeline, severely restricting a business's cash flow and making the debt exponentially more expensive.
In contrast, the term loans underwritten by Growth Funding Group offer transparent, traditional amortization. Our loans are not amortized like an MCA; instead, they feature predictable monthly payments over a fixed schedule. This simple difference means our term loans can be a fraction of the cost—in many cases, 8 to 10 times less than the total cost of carry of an equivalent MCA loan.
Structured Financing for Established Growth
Our term loans are designed for financial stability and long-term planning, not short-term emergencies. This focus allows us to offer favorable structures:
- Amortization Options: We provide clear 2 to 5-year amortization options, giving the business owner control over their monthly cash outlay.
- No Collateral Required: These loans are often unsecured, meaning they do not require collateral (such as real estate or equipment).
- Reduced Personal Risk: We understand the aversion to risk; many of our financing solutions can be structured with no personal guarantee.
- Focus on Cash Flow: While we don't require collateral, we do require stability. Our funding is reserved for businesses that can demonstrate established cash flow and a minimum of two years or more in operation. This ensures the business has the financial foundation to comfortably manage monthly debt service without undue stress.
By choosing a real business term loan from Growth Funding Group, owners bypass the frustrating and costly bait-and-switch common in the online lending world. You get the capital you need with a structure designed for growth, not financial burden.
