Checkbook Merchant Cash Advance

Your self-directed retirement account – Checkbook IRACheckbook 401k, 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 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 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, generally used by small businesses, that has exploded in popularity over the last decade. Structured as cash advances against future revenues, the interest rate on these deals provide outstanding returns to investors. By characterizing such arrangements as advances rather than loans, providers of MCA facilities (Merchant Cash Advance) are able to sidestep State usury laws and charge very high interest rates for the financing facilities they provide.

  • 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, or Defined Benefit Plan.