Lending by JLFG — articles | Jon Lynch Financial Group

Jon Lynch Financial Group

Lending by JLFG — articles

Long-form, plain-English explanations of small business working capital. Each is written so an owner who's never raised capital can read one and ask better questions of any broker. Topics include strategic timing, comparing factor rates against APR, reading a quote, and credit-tolerant revenue-based financing.

Strategy

When to look for working capital: before you need it, while monthly revenue is strong

Strong monthly revenue qualifies you for the largest first-position facility at the best pricing. Lenders price urgency into deals — applying from a position of strength results in larger advances, lower factor rates, and longer terms. With qualification thresholds + 4 strategic timing triggers + a 5-fact intake.

~1,750 words · Published 2026-05-06 · By Jon Lynch

Comparison Guide

Working capital for small business: a straight-talk guide to your real options

Six categories of SMB financing — working capital advances, term loans, lines of credit, equipment financing, invoice factoring, SBA. How each one actually prices, when each one fits, the trap most owners fall into when comparing them.

~1,800 words · Published 2026-05-06 · By Jon Lynch

Cost of Capital

APR vs factor rate: actually understanding what your financing costs

Why "1.35 factor rate over 12 months" is not the same as "35% APR" — and why this misconception is worth thousands of dollars per year for the average SMB. With worked examples for a $100K advance.

~1,400 words · Published 2026-05-06 · By Jon Lynch

Quote Reading

How to read a working capital quote: 7 things brokers don't always explain

Origination fees, daily vs weekly payment cadence, prepayment terms, stacking penalties, ACH controls, default acceleration, "true-up" clauses. The details that separate a fair quote from a trap.

~1,500 words · Published 2026-05-06 · By Jon Lynch

Product Comparison

Working capital advance vs equipment financing vs line of credit — which fits your use case

A use-case framework for picking the right tool from the five most common SMB products. Speed, asset, cadence, and predictability — the four questions that point at the right product before rate enters the conversation.

~1,400 words · Published 2026-05-20 · By Jon Lynch

Underwriting

Bank statement quality: what MCA funders actually look at

The five metrics every underwriter pulls — deposits, average balance, NSFs, negative days, deposit count — and how 1 vs 3 NSFs can change your factor rate by 5-8%. With a 90-day fix-up checklist.

~1,200 words · Published 2026-05-20 · By Jon Lynch

Debt Restructuring

When MCA position consolidation actually saves money (and when it doesn't)

The math behind straight consolidation vs reverse consolidation. When the daily payment drop is real savings vs band-aid relief — and the red flags that you're being sold a refinance, not a fix.

~1,350 words · Published 2026-05-20 · By Jon Lynch

Broker Economics

How MCA brokers get paid — compensation structures, splits, and commissions

The typical 8–15% commission, splits in solo vs team vs sub-broker shops, renewal economics most brokers miss, and when brokering isn't worth the effort. Written by a working broker, for owners and prospective brokers.

~1,300 words · Published 2026-05-20 · By Jon Lynch

Broker Economics

ISO Agreement vs Direct Funder — when MCA brokers should go direct

The decision tree for active brokers at 8-10 deals/month: stay sub-broking under an ISO (5-7% comp) or graduate to direct funder appointments (8-15%+). Side-by-side comp math, threshold deal volume that flips the answer, and the 5 requirements to actually get appointed direct.

~2,100 words · Published 2026-05-21 · By Jon Lynch

Broker Economics

The Working Capital Moment: how MCA brokers earn insurance referral income

Funded merchants buy life insurance at 3-4× the base rate within 60 days. Broker playbook for converting that window into $5K-$40K/year in referral income with zero additional licensing — referral fee tiers, intro-call language, state compliance notes.

~1,900 words · Published 2026-05-21 · By Jon Lynch

Broker Economics

The MCA Stip Package: what funders actually look at (and what kills your tier)

A clean stip package is the difference between funder tier-1 status and getting your submissions back-shelved. Walk through what every funder reviews — bank statements, application detail, owner ID, business verification — and the 5 most common mistakes that drop your tier.

~1,800 words · Published 2026-05-21 · By Jon Lynch

Business Exit

Selling your business — cash, earnout, or seller note structure

Why deal structure matters as much as price. All-cash, cash + earnout, cash + seller note — when each fits, where your negotiating leverage is, and the realized-value gap most first-time sellers don't see coming.

~1,450 words · Published 2026-05-20 · By Jon Lynch

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