Checkbook Merchant Cash Advance

Your self-directed retirement account – Checkbook IRACheckbook 401k, Checkbook QRP, Checkbook HSA, or Checkbook DB Plan – can invest in:

  • Merchant Cash Advances (MCA Loans),
  • Accounts Receivable Factoring (A/R Factoring) – recourse and non-recourse,
  • Purchase Order Finance (PO Finance) and
  • many other forms of merchant financing.

If you’d like to set-up a Merchant Cash Advance IRA, Merchant Cash Advance Solo 401k, Merchant cash Advance QRP, Merchant Cash Advance Defined Benefit Plan, or Merchant Cash Advance HSA – this page provides the compliance information you need to do so.

What is a Merchant Cash Advance?

  • A merchant cash advance, or MCA, is a source of funding used by small and medium-sized businesses that has exploded in popularity over the last decade.
  • An MCA “loan” is structured as a cash advance against future revenues of the borrowing business.
  • By characterizing such arrangements as advances rather than loans, providers of MCA facilities (Merchant Cash Advance) are not subject to state usury laws.
  • The interest rates on these MCA financing facilities provide outstanding returns to investors.
  • Use your Checkbook Retirement Account to provide cash to small businesses that don’t qualify for traditional financing.
  • Get extremely high returns for the risk taken when advancing funds to businesses that don’t meet the lending guidelines of traditional lenders.

Checkbook Cash Advance Compliance

Be aware of prohibited transactions. Don’t advance funds to any family member or entity that is a disqualified persons as defined in Section 4975 of the Tax Code.

The investor is the Checkbook Retirement Account. All paperwork and documentation should be in the name of the investing entity, which may be your IRA-LLC, Solo 401k, Solo 401k-LLC, QRP, or Defined Benefit Plan.