• Richard Gusmano


Updated: Jan 6

A true Bank-Backed Term Loan boasts myriad advantages over Cash-Flow Funders (MCA).

- Banks loans are fully amortized. They calculate interest using Annual Percentage Rate (APR) rather than Factor Rates (fixed).

- While most MCA products are limited to daily or weekly payment structures, bank loans offer monthly payments, freeing up your working capital.

- Bank loans offer terms of 2-10+ years, which keeps your monthly payment to a minimum.

- Bank loan typically present larger approvals than MCA programs can offer.

While MCA Underwriters’ base approvals from monthly revenue and account balances, Bank Loan Officers determine approvals from earnings, credit and a historical perspective. They look at trends, consider factors that drive profitability and the ability to make payments. In order to look at your deal from this thorough perspective, we need to see your most recent corporate tax return.

Accountant’s typical role:

Accountants generally protect their business clients by mitigating their tax burden. The most simplistic way to do this is to maximize expenses to limit income. When you know your business will be seeking capital make sure to tell your CPA to be sure that your borrowing interests are aligned with how he views deductions.

Banks calculate the amount of money your business can afford to pay back each month using net income numbers from your tax return - an official document. The more income you show, the larger the payment you can afford, and subsequently the large approval you can qualify for.

As you prepare to process your return, consider:

Am I paying myself enough to cover my living expenses?

Am I noting Interest on short-term funds where applicable?

Am I noting Owner/officer salaries?

Am I properly reporting depreciation where applicable?

Your BCCUSA Consultant will be happy to review a draft of your taxes with you before you file. Please let us know if you have any questions or concerns.

BCCUSA: Know BEFORE You Borrow



3237 Route 112 Suite 9

Medford NY 11763

Tel: 631-458-0100

© 2018 Business Capital Consultants | 3237 Route 112, Suite 9 | Medford, NY, 11763