SDIRA, QRP, Solo 401k Checkbook Merchant Cash Advance
- 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.
- Be aware of UBIT, UBTI, UDFI: Depending how investments are structured, UBIT may or may not arise.