⚠️ Stuck in MCA Debt? We Can Help
SBA loans can NO LONGER be used to refinance Merchant Cash Advances. But our Newtek Term Loan program was built specifically for this purpose.
If you're paying 30-50% APR on daily MCA payments, we can refinance you into a fixed-rate term loan at 10-18% with monthly payments. Save thousands per month.
What is a Term Loan?
A term loan is a traditional business loan with:
- Fixed loan amount: Borrow a lump sum upfront
- Fixed interest rate: Rate never changes (typically 8-18%)
- Fixed monthly payment: Same payment every month
- Fixed term: 1-10 years, you choose
Unlike Merchant Cash Advances, term loans don't take a percentage of daily sales. You know exactly what you owe every month, making budgeting simple.
The Newtek MCA Refinance Program
Problem: Many businesses took out Merchant Cash Advances (MCAs) for quick funding. The daily payments and sky-high rates (30-80% APR) are crushing cash flow.
Old Solution: SBA 7(a) loans used to allow MCA refinancing.
NEW Reality: SBA changed the rules. MCA debt can no longer be refinanced with SBA loans.
Our Solution: Newtek Term Loan Program — designed specifically to refinance MCA debt and replace it with affordable, fixed-rate financing.
❌ Your Current MCA
- APR: 30-80%
- Payment: Daily (every business day)
- Amount: % of daily sales (unpredictable)
- Term: 6-18 months (very short)
- Example: $100K advance = $150K+ repaid
✅ Newtek Term Loan
- APR: 10-18% (fixed)
- Payment: Monthly (predictable)
- Amount: Fixed monthly payment
- Term: 1-10 years (your choice)
- Example: $100K loan = $120K repaid (5 years)
Real-World Example
Current Situation: Restaurant owner has $150K in MCA debt. Paying $12,000/month (8% of monthly sales). APR equivalent: ~45%
After Refinancing with PMF LA:
- $150K term loan at 14% APR, 7-year term
- New payment: $2,600/month
- Monthly savings: $9,400
- Annual savings: $112,800
Result: Owner freed up almost $10K/month in cash flow, paid off high-interest debt, and stabilized finances with predictable payments.
Who Qualifies for the Newtek Program?
- Existing MCA Debt: Currently paying on one or more MCAs
- Time in Business: 2+ years in operation
- Monthly Revenue: $50K+ per month
- Credit Score: 640+ (some flexibility with strong cash flow)
- No Recent Bankruptcies: Must be 2+ years discharged
- Profitable Operations: Business must show ability to repay
💰 Save Thousands Monthly
Reduce your monthly payment by 50-70% by refinancing expensive MCA debt.
📅 Predictable Payments
Fixed monthly payment — same amount every month for the entire term.
📈 Improve Cash Flow
Free up capital to reinvest in inventory, payroll, marketing, and growth.
⏱️ Longer Terms
1-10 year terms vs. 6-18 months for MCAs. Lower monthly payments.
Why MCAs Are So Expensive
Merchant Cash Advances aren't technically loans. They're "purchases" of future revenue. That's why they don't disclose APR. Here's the reality:
- Factor Rates: MCAs use "factor rates" (1.2x to 1.5x) instead of APR
- Example: Borrow $100K at 1.35 factor = repay $135K
- Sounds like 35% APR? It's actually 50-80% when annualized because you repay in 6-12 months, not 12 months
- Daily Payments: Money leaves your account every single business day
- Revenue-Based: Percentage of daily sales, so payments fluctuate
The cycle: Many businesses take multiple MCAs to cover the first MCA. This creates a "debt stacking" trap that's hard to escape without refinancing.
Escape MCA Debt Today
See how much you can save by refinancing with a Newtek Term Loan. Free consultation, no obligation.
Calculate Your Savings →Or call: 213-349-8151
Traditional Term Loans (Non-MCA)
We also offer standard term loans for businesses that aren't refinancing MCA debt:
- Purpose: Equipment, inventory, working capital, expansion, renovations
- Amounts: $25K - $500K+
- Rates: 8-16% APR (based on creditworthiness)
- Terms: 1-10 years
- Requirements: 2+ years in business, 650+ credit score, profitable operations
Term Loan vs. SBA Loan
SBA Loans: Best rates (9-12%), but slower approval (60-90 days), stricter requirements, can't refinance MCA debt
Term Loans: Faster approval (7-14 days), more flexible underwriting, can refinance MCA debt, rates slightly higher (10-18%)
When to choose Term Loans:
- You need funding faster than SBA timeline
- You have MCA debt to refinance
- Your credit/financials don't meet SBA standards
- You want a simpler, faster process
How to Apply
Step 1: Submit a quick application (5 minutes)
Step 2: Provide basic financials (bank statements, tax returns)
Step 3: Get approved in 7-14 days
Step 4: Fund and payoff expensive MCA debt
Step 5: Enjoy predictable monthly payments and improved cash flow
Frequently Asked Questions
Q: Can I still use SBA to refinance MCA debt?
A: No. SBA changed their rules. MCA debt is no longer eligible for SBA refinancing. That's why we partnered with Newtek to offer this alternative.
Q: What if I have multiple MCAs?
A: We can refinance all of them into one single term loan with one monthly payment.
Q: Will this hurt my credit?
A: Refinancing MCA debt typically improves your credit because you're replacing high-utilization debt with structured financing.
Q: How much can I save?
A: Most clients save 40-70% on their monthly payments. A $100K MCA costing $8K/month becomes a $2K-3K/month term loan payment.
Q: How long does approval take?
A: Typically 7-14 days from application to funding.