For many small and mid-sized businesses, the high costs of Merchant Cash Advances (MCAs) have turned a short-term cash flow solution into a long-term financial trap. Growth Funding Group (GFG) recognizes the pressure these high-interest, short-term advances place on working capital. We are proud to announce our specialized suite of financing products—including Second Position CRE Loans, flexible Term Loans, and Hedge Fund Programs—all strategically designed to offer a definitive, lower-cost exit strategy from crippling MCA debt.
The GFG Advantage: Cost-Effective Debt Relief
While MCAs provide speed, their effective Annual Percentage Rates (APRs) can choke a business's growth potential. Our programs are structured to consolidate and refinance existing MCA obligations into affordable, predictable, and transparent debt.
- 2nd Position CRE Loans: For businesses that own commercial real estate (CRE), GFG offers an innovative solution to leverage property equity without disturbing a primary mortgage. Our 2nd position CRE loans sit behind the existing senior debt, providing substantial capital at rates significantly lower than any MCA. This capital is specifically earmarked to pay off high-cost daily/weekly MCA payments, immediately improving cash flow.
- Flexible Term Loans: Our standard term loan programs are tailored for debt consolidation, offering fixed, amortizing payments over a longer period. This replaces the disruptive daily remittance of an MCA with a manageable monthly payment, providing the stability needed for true business planning and growth.
- Hedge Fund Programs: For more complex situations or larger MCA burdens, GFG utilizes specialized Hedge Fund Programs to provide structured, patient capital. These are bespoke, high-touch solutions designed to purchase out multiple MCA positions and stabilize a company's financial footing with a clear, single line of credit.
At Growth Funding Group, our mission is to provide the financing that facilitates stability, not just survival. Our programs eliminate the high factor rates and continuous daily draws of MCAs, replacing them with a financial partnership built for long-term success.
Top 10 Industries Relying on Merchant Cash Advances
The need for quick capital often drives businesses in cash-flow-sensitive and high-transaction-volume sectors to utilize Merchant Cash Advances. These are the top ten industries that frequently rely on MCA financing, and thus, benefit most from GFG’s refinancing solutions:
- Restaurants and Cafés: Known for high credit card volume and seasonal fluctuations.
- Retail Stores: Rely on rapid funding for inventory purchase ahead of holiday or seasonal demand.
- Auto Repair and Service Shops: Face unexpected high costs for equipment repair or parts inventory.
- Salons and Spas: Utilize funding for renovations, equipment upgrades, and staff training.
- E-commerce Businesses: Need fast capital for digital marketing campaigns and bulk inventory buys.
- Hotels and Hospitality: Experience seasonal dips that require financing to cover fixed operating costs.
- Medical and Dental Practices: Use MCAs for purchasing specialized equipment or managing patient billing cycles.
- Construction and Contracting: Need quick access to funds for materials and labor before project payments are received.
- Transportation and Trucking: Require capital for vehicle maintenance, fuel, and regulatory fees.
- Manufacturers: Utilize advances to bridge gaps between production and the sale of goods, or to buy raw materials.
