Suggestions for MCA reps and brokers...
Lately I have received a bunch of MCA files...
(not sure why - as I don't do a lot of these)
But in reviewing these, it's clear that no one has bothered to even open and examine the bank statements. You guys just seem to be shuffling paper.
So here are some suggestions for some of you new or just lazy people.
Review the last 60 days of bank statements. If it's the 15 of the month or later, get the MTD (month to date) bank statement.
1. Check the ending balances - if they are low or negative, that a red flag.
2. Check the average daily balances - is there enough there to cover the payments of a new loan.
3. Look for overdrafts or NSF's paid or not. If more than 6, that's a red flag
4. Check for MCA lender withdrawals. If there is a consistent daily debit of the same amount, chances that's a MCA withdrawal.
5. Check the industry - see if the industry is on a restricted industry list.
6. Check the business name on the bank statement - does it match the loan application? Is it a personal bank statement?
7. Look for transfers into and out of the bank account....if there are transfer deposits, you need to get the bank statements of the accounts from where the transfers originated. Transfers do NOT count as revenue/income.
I am sure many of you more experienced MCA brokers could add to this list and please do so....
Steve Benjamin
Professional Business Loans
Irvine, CA 92620
https:/probizloans.net/
949-228-1050
