Revenue-Based MCA: What Florida business owners need to know

By Jon Lynch · Published 2026-05-18 · ~1,700 words · ~8 min read

The one thing banks miss that an MCA looks at

Banks underwrite a business loan on three things, more or less in this order: personal credit score, collateral, and time in business. If your FICO is below 680, or you don't own real estate to pledge, or you've been incorporated for less than 2 years — the application typically dies in committee no matter how well your business is actually performing.

An MCA funder underwrites the same business on a different signal: monthly revenue, measured by the deposits hitting your business bank account. The product was designed for restaurants, contractors, trucking operations, retailers, medical practices, and service businesses that move real money through a checking account every month but don't look the way a bank wants on paper.

Who qualifies in Florida (specifically)

Florida-specific notes: virtually every major MCA funder operates here, so you have plenty of options. Industries that have historically been over-served in FL — trucking, construction, restaurants, hospitality, medical practices — get the broadest funder coverage. Industries that some funders decline include cannabis-touching (federal Schedule I issue, even in states that legalized), adult entertainment, gambling, and certain weapons businesses.

What an MCA actually costs (the factor rate, decoded)

MCA pricing is expressed as a factor rate, not an interest rate. A factor rate of 1.35 on a $100,000 advance means you pay back $135,000 total — the $35,000 is your full cost, regardless of how long the payback takes.

Most Florida deals price between 1.20 (cheapest, A-paper) and 1.50 (highest, C/D-paper short-term). Typical terms are 6–18 months, with 9–12 months being most common.

To convert a factor rate to an effective APR, the rough math is:

• 1.20 × 12-month term ≈ 36–42% APR equivalent
• 1.30 × 12-month term ≈ 55–60% APR equivalent
• 1.40 × 9-month term ≈ 90–105% APR equivalent
• 1.50 × 6-month term ≈ 175–200% APR equivalent

That last number looks scary, and on its own it would be. But the right comparison isn't an MCA vs. a bank line of credit (that bank wouldn't approve you anyway) — it's an MCA vs. not having the capital at all. If $100K of working capital lets you fulfill a contract that nets $200K, the deal makes obvious sense even at a 1.40 factor.

Daily vs weekly vs revenue-share payback

Three common payment cadences:

1. Fixed daily ACH — the funder pulls the same dollar amount every business day (typically 252 banking days per year). Smoothest cash-flow impact, but your operating account has to maintain a buffer for the daily debit.
2. Fixed weekly ACH — same total cost, but pulled in one larger payment per week. Easier to forecast; harder to recover from a slow week if the balance isn't there on debit day.
3. Revenue-share (% of daily deposits) — the funder takes a fixed percentage of your daily card-receipt or daily bank deposits, so payment scales with revenue. The most flexible during slow weeks, but requires giving the funder visibility into your daily revenue (split processor or daily bank login).

For Florida operators with seasonal swings (tourism, construction, ag-adjacent), revenue-share is often the right call. For steady B2B service businesses, fixed daily ACH is simpler and usually cheaper.

What to compare across funders (the five questions every broker should answer)

1. What's the all-in cost net of origination fees? Many quotes show a "clean" advance amount but the funder takes 2–10% as origination/doc fee out of the wire. Always ask for the net hit to your account.
2. Is there an early-payoff discount? Some funders offer 10–25% off the remaining balance for early payoff. Many don't. If you anticipate paying early, this single question can save you tens of thousands.
3. What's the stacking policy? Most funders disqualify deals with an existing MCA balance on the bank statements. Some allow "second position" funding (you have one active MCA, they fund a second behind it) but at higher factor rates.
4. Is there a personal guaranty + confession of judgment (COJ)? Personal guaranties are standard. COJs allow the funder to obtain a judgment without notice on default. New York banned COJs in 2019 for out-of-state borrowers; Florida still allows them. Negotiate them out or accept them knowingly.
5. Are there reconciliation/true-up clauses? Reputable funders will reconcile down your payment if revenue drops. Predatory ones don't. Ask for this in writing.

What red flags should make you walk

• Any up-front fee from the broker. Brokers are paid by the funder on funded deals. If a broker asks you for $500 to "process your file," walk.
• Pressure to sign within 24 hours. Real deals don't disappear overnight. Pressure = something is being hidden.
• Refusal to disclose the funder's name before you sign. You have a right to know who's lending you money. NCND agreements bind YOU after introduction, but they shouldn't hide the funder's identity from you.
• Daily ACH amounts that exceed 10–12% of your monthly revenue. If the math doesn't work, the deal will default. A bad broker will sign you anyway; a good one will help you size it correctly.

How Lending by JLFG works

We are a Florida ISO (broker), not a funder. We don't lend our own money. We have signed ISO Agreements with a vetted network of MCA funders and submit your application to the right 3–5 funders for your profile — not blast it across the industry, which damages future deal terms and exposes you to spam. We are compensated by the funder on funded deals; you pay us nothing.

Our typical process:

1. 15-minute discovery call to understand your funding need + business profile
2. You upload 3 months of business bank statements + a 1-page application (we generate the form from your business + owner info — usually 5 minutes)
3. We submit to the 3–5 funders most likely to approve your profile + most competitively price your deal
4. Offers return within 24–48 hours; we walk you through every line item including the five questions above
5. You select an offer + sign with the funder directly (we don't hold your funds — funder ACHs to your business account)
6. Typical funding timeline: 5–7 business days from first call to bank deposit

Frequently asked questions

What if I've been declined elsewhere already?

Declines are routine in MCA — every funder has their own underwriting model. A profile that's a hard no for one funder is an easy yes for another. We re-package your file before submitting so it goes to the right funders for your exact situation.

Will applying hurt my personal credit?

Most MCA funders run a soft pull during initial review (no FICO impact) and only run a hard pull after you've accepted terms. We disclose this before submitting anywhere.

What if my business has a tax lien or judgment?

Workable. Some funders decline these outright, but several have specialized programs that handle them — sometimes with a slightly higher factor rate, sometimes with no rate impact at all. We know which funders treat what.

Can I use the funds for anything?

Generally yes. MCA proceeds are unrestricted working capital — payroll, inventory, marketing, equipment, expansion, debt consolidation, opportunistic purchases. Some funders have minor restrictions (e.g., not for refinancing another MCA from the same shop). We disclose any restrictions before you sign.

Lending by JLFG is the brokerage arm of Jon Lynch Financial Group, a Service-Disabled Veteran-Owned Small Business (SDVOSB) holding company headquartered in Miami, Florida. We do not extend credit directly; we are an Independent Sales Organization registered to do business in Florida. Our full legal framework — including the broker-merchant NCND template, ISO Agreement protections, and compliance policies — is published at /admin/legal-framework/.