An MCA buyout replaces an existing merchant cash advance with new funding that settles the old balance. If you are carrying a daily or weekly payment that is squeezing your cash flow, the process below is what happens between your application and the day the old advance is closed. Decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses.
The short version
You apply, we review your bank statements and your existing advance, a payoff figure is confirmed with your current funder, the new funding settles that figure, and any amount left over comes to you. Your daily or weekly debit to the old funder stops once the payoff clears.
Step by step
| Step | What happens | What you do |
|---|---|---|
| 1. Apply | A short online application with a soft credit pull that does not affect your score. | Tell us about every open advance, including the payment amount and how often it is taken. |
| 2. File review | We read about three months of business bank statements to see deposits and the debits going out. | Upload statements. The debits tell us which funders are active. |
| 3. Payoff figure | The balance owed to your current funder is confirmed, usually through a payoff letter, because the number on your last statement is not the settlement amount. | Request the payoff letter from your funder, or tell us who it is and we can help you get it. |
| 4. Offer | You see the amount, repayment schedule and total repayment before you accept anything. | Compare it with what you pay today, not just the daily amount. |
| 5. Settlement | Funds settle the old advance. Anything above the payoff comes to you as working capital. | Confirm with your old funder that the account shows paid and the debits have stopped. |
Why the payoff letter matters
A payoff letter is the written figure your current funder will accept to close the advance, with the date it is good through. Payoff amounts can change with each payment taken, so a stale letter causes delays. Ask for a current one and apply while it is still good.
What can slow a buyout down
- Missing statements. A gap in the three-month window means another round of uploads.
- An undisclosed advance. Another debit in your statements that was not on the application makes the file stall while it is explained.
- A funder slow to issue the letter. Some respond the same day, others take longer. Asking early helps.
- Overdrafts or returned items. A few are normal. A pattern invites questions.
What to check before you sign
- The total you will repay, not only the daily or weekly payment.
- Whether the new payment is lower because the term is longer, which can mean paying more in total.
- Any fees listed in the offer.
- What you receive after the payoff, if anything.
If you carry more than one advance, see MCA consolidation. If you want to keep your existing advance and add capital instead, see second position MCA.