The Mobilization Mindset

Episode 109 | Why MCAs are BAD for Construction Contractors and Manufacturers w/ Scott Peper

Mobilization Funding Episode 109

They call it a merchant cash advance. But for too many contractors, it turns into a daily drain that suffocates their margins, hijacks their receivables, and buries their future under layers of hidden costs and aggressive tactics.

In this solo episode of The Mobilization Mindset, our CEO, Scott Peper, shares:

- What MCAs really are - and why the “purchase of receivables” language is smoke and mirrors
- How factor rates work (and how they disguise the true cost of borrowing)
- How brokers mark up buy rates and pocket massive commissions - while you foot the bill
- The math behind a typical MCA - and why a $100K loan might cost you $700K in revenue to repay
- The trap of refinancing an MCA with another MCA (often by the same company in disguise)
- The fine print that gives them the right to contact your customers - and seize your receivables
- Why so many construction businesses don’t make it out - and what you can do before you’re stuck

Plus, Scott shares real alternatives contractors should look at first - from community banks and SBA programs to factoring, purchase order financing, and work-in-progress lending.

Whether you’ve taken an MCA, are considering one, or want to protect your business from falling into the same trap - this episode was made for you. We hope you enjoy it!

🎙 Hosted by Scott Peper - CEO, Mobilization Funding
https://mobilizationfunding.com
https://www.linkedin.com/in/scott-peper-9387288/

The Mobilization Mindset is the podcast for construction and manufacturing leaders who are building smarter, leading stronger, and growing with intention.

No fluff. No filters. Just real insight for leaders building the companies that last.

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