Case Summary: Merchant Cash and Capital, LLC
Merchant Cash and Capital, LLC
$25 million Secured Term Loan
Merchant Cash and Capital, LLC (“MCC”) is a specialty finance company that provides cash advances to small businesses by purchasing a portion of their future revenue streams (known as merchant cash advances). The revenue streams are paid to MCC through an assignment of credit card receipts or through direct debiting of the customers’ bank accounts. Typical clients include restaurants, retailers, automotive service, other types of service businesses and certain non-retail businesses.
Founded in 2005 and headquartered in New York City, MCC has experienced strong performance and significant growth and therefore needed to increase its current debt facility to capitalize on these business opportunities.
Crystal provided a $25MM commitment as part of a total $75.0MM senior secured term loan facility agented by Comvest Capital II, L.P. A portion of the transaction was structured as a delayed draw term loan.
“Like the businesses we finance, we need resources to develop more programs and services for our customers, and that is exactly what this new financing will allow us to do. Our new term loan gives us the capital needed to invest in technology and product development, and catapult the growth of MCC from the current levels of funding $20 million per month to more than double that over the course of the next year.”
—-Stephen Sheinbaum, Chief Executive Officer