Frequently Asked Questions

A traditional lender looks at a someone’s credit history and other factors to establish the credibility of the borrower for a loan. The lender then extends credit priced at an annual percentage rate (APR). By contrast, an MCA funder reviews a company’s sales, and extends a cash advance in return for a percentage of the future sales. As opposed to traditional loans, the percentages for an MCA are not established based on time. The price for the cash advance is based on a fixed factor rate. For example, a $10,000 cash advance that is priced at 1.25, will return a total of $12,500 to the MCA funder. The rate is fixed – it does not increase if the merchant who acquired the advance extends the time of repayment.

The independent brokers in the MCA industry are referred to as Independent Sales Organizations. OPV works with many qualified ISOs that are committed to help small business owners find the most competitive financing options. In real estate there are benefits to working with brokers, and similarly ISOs work to find the best deals for their clients. If you want to work through an ISO, please contact us. We will provide you with a list of qualified ISOs that we work with. We encourage ISOs to contact us, so that they can be placed on the list.

MCAs are repaid in increments of small daily payments, automatically drawn via ACH.  Let’s use the previous example where the final return is $12,500. The MCA funder and the merchant project a ninety-day term to repay the advance. The $12,500 will be divided into ninety portions, and the daily payment will be established at $138.88.

The payment pause system begins after the first 45 daily payments are processed without being late or missing a payment. OPV will award a single payment pause after the successful processing of four consecutive payments. You will receive an email /text notification with a unique Pause Number. To process the pause, you will simply go to “SUBMIT PAUSE” on the OPV website, enter the Pause Number, the date you wish to pause, and press submit.

The OPV awarded pauses do not expire until the final payment. You can submit one pause at a time, or let them accumulate, and then submit multiple pauses for your choice of payment dates.

We understand that even the best performing company may at times need a pause before qualification. In an effort to help clients stay current without losing the rebate qualification, we will sell pauses at 30% of the daily payment. There is a limit of four pauses which can be purchased per thirty days. Contact your OPV representative for further details.

Because the APR is based on time, the longer you hold the MCA, the lower the APR will become. Every time you submit a pause, you make it easier on your cash flow and lower your APR. The more payments that are processed on time, the more pauses are awarded, which is why we call it performance-based APR.

The OPV rebate system is very simple and transparent. To qualify for a rebate, you must get approved for a renewal, and keep making your payments on time. After the final payment is processed, you submit your rebate form, and we deposit the funds directly to your bank via ACH, in the same way that we funded the MCA.

We will refund the entire factor cost of your first MCA, up to a total of 1 percent of the cost. For example, if your first MCA was $10,000, which means that your total factor cost was $2500, and your rebate will be $2,400. This means your total cost will be $100 for a $10,000 MCA, and that is – a One Percent Venture. Open balances for fees and 3rd party costs will be deducted from the final rebate amount.

Yes, you can apply again and repeat the same deal, which will be awarded with another rebate after the final payment is successfully completed.