Alfa Advance Funding Reviews - Financial Lender Pros & Cons
- High-risk merchant cash advances (MCAs) Reverse consolidation services
- Works with high-risk merchants
- Same-day funding
- Offers debt restructuring
- Little or no loan information available online
- Does not provide rate or term details
- Debt restructuring details missing from website
What businesses are best served by Alfa Advance Capital?
Alfa Advance Capital’s advances and debt consolidation services are designed to meet the needs of “healthy, but underserved” businesses, including those in high-risk industries. Whether a merchant is in need of fast cash to cover emergency expenses or is struggling to break free from an endless cycle of debt payments, Alfa Advance Capital may be able to help. Businesses denied funding elsewhere or without the time, documentation or financial strength to meet the requirements of traditional lenders are welcome to apply to this lender.
Alfa Advance Capital is a small, privately-owned company located in Miami, FL and is dedicated to providing fast funding and debt consolidation services to businesses in just about every industry. Founded in 2016 by a team with more than a decade of experience in finance, the lender works with small- to moderate-sized companies across the U.S. to find funding options based on overall financial health, not just credit scores.
Positioning itself as a faster alternative to traditional loans and SBA funding, Alfa Advance Capital removes many of the barriers preventing high-risk businesses from obtaining advances or getting help with current financial obligations. The lender is dedicated to providing “exceptional” customer service, quick responses and competitive offers and rates.
Companies requiring next-day funding to recover from cash flow setbacks or recover from unusually slow seasons don’t have time to wade through the complicated application procedures associated with traditional loans. Alfa Advance Capital aims to meet these needs with its MCA options and an experienced team of underwriters.
According to the lender’s LinkedIn profile, Alfa Advance Capital provides MCAs to “healthy businesses” and says its underwriters look beyond personal credit scores to consider the performance of the business as a whole. The Alfa Advance website adds its team “evaluate[s] the revenue” to “assess the business” and that the lender is open to working with companies “regardless of credit history with no strings attached.” This suggests no minimum credit score is required and merchants can apply as long as they have enough documentation to allow the lender to perform a detailed evaluation of cash flow, financial standing and funding needs.
According to Alignable, Alfa Advance Capital specializes in high-risk lending, although how this fits with the lender’s own definition of a “healthy business” is unclear. The language and tone used on the Alfa Advance website gives the impression just about any business in any circumstance will be considered for funding.
According to LinkedIn, Alfa Advance Capital has “one of the easiest to obtain” advances in the alternative lending industry. This can be a boon for companies facing tough financial circumstances, or it can be a red flag. Having few requirements and a lenient credit policy means Alfa Advance Capital could be a lifesaver for a business that would have to declare bankruptcy or close its doors without quick funding, but “fast-cash” lenders willing to do anything to close a deal may use predatory practices like high interest rates in an attempt to offset the higher level of risk.
Alfa Advance Capital “accepts all industries and business size[s]” for funding. Its homepage represents typical merchant clients with photos depicting hospitality, construction and service businesses, suggesting a wide range of companies come to the lender for advances or help with debt consolidation.
This lender makes it a point to emphasize its willingness to provide advances to just about any business for any reason. As long as a merchant qualifies, the underwriters at Alfa Advance Capital will “discuss all potential options of funding” available and work with merchants to find the option “best suited” to their needs.
It’s an unusual approach even for “fast-cash” MCA providers in the alternative lending industry. Usually, lenders have at least a few business types with which they prefer not to work. However, because Alfa Advance Capital markets itself as an option for “underserved” businesses, it’s possible companies in such industries can obtain funding or debt consolidation services through this lender when others are hesitant or unwilling to help.
MCA loans are typically paid back in daily installments based on a percentage of a merchant’s credit card sales. This percentage is agreed upon prior to the deposit of the advance and is usually taken out of the merchant’s business bank account as an automatic payment. Payments vary due to this structure, and the full amount of the advance is paid back more quickly if sales volumes are high.
Terms for typical reverse consolidation programs are structured to give business owners more time to pay off their debts. Spreading payments out over a longer period reduces the financial burden and allows merchants to avoid the negative consequences of defaulting or declaring bankruptcy.
What’s Required to Apply
Business owners interested in applying with Alfa Advance Capital must contact the company for approval requirements and application details. The only contact form on the site is tailored to ISOs and brokers wishing to partner with the lender, although the content on other pages speaks directly to merchants. The best option appears to be calling the company to talk to a member of its underwriting team.
Applying for an MCA typically requires businesses to provide:
- Personal and business contact information
- Personal and business credit ratings
- Several months’ worth of bank statements
- Average monthly credit and debit card sales
- Amount of funding requested
Some lenders ask for details regarding the number of negative ending days or NSF days per month, sales projections, tax information and other related statements to get an idea of the financial health of the company.
Because Alfa Advance Capital states its team is committed to providing fast funding, the turnaround time after a merchant submits an application should be quick. After underwriters evaluate the financial information, the lender reaches out to the applicant with available funding options. Merchants can expect advances to be deposited as soon as the day following their acceptance of an offer.
Availability of reverse consolidation services likely depends on how much debt a company is carrying, its current financial status and its ability to keep up with the payments required to satisfy the consolidation agreement.
No rate information is available from Alfa Advance Capital, but Business.org puts the average range at 1.2 to 1.5. According to NerdWallet, the typically high rates and fluctuating payments of MCAs can make the equivalent APR anywhere from 40 to 350 percent. This can put a significant burden on businesses already struggling with finances and is one of the reasons why an MCA is typically considered a short-term or emergency solution to cash flow problems.
Alfa Advance Capital advertises its advances as having no “unreasonable repayment requirements” and emphasizes its transparency with fee schedules. Merchants seeking more information can call the lender or submit an inquiry via email.
Businesses seeking MCAs may already be facing financial difficulties in addition to the circumstances for which the advance is required. This could make it difficult to pay back the advance and lead the company to seek additional funding either from the original MCA provider or another lender, or a company could already be carrying debt from other lenders when it comes to Alfa Advance Capital.
The emphasis at Alfa Advance Capital seems to be on providing funding regardless of circumstances. It’s unclear what level of risk this particular lender is willing to assume, especially since its advances are unsecured.
Businesses should be aware of the risks of stacking, including restricted cash flow and an increased likelihood of defaulting, before considering additional funding on top of existing loan obligations.
Alfa Advance Capital advertises “no hidden fees” on its loans; however, the lender doesn’t specify whether this means they don’t charge for processing documents or they provide full disclosure of document fees to merchants at the time of application.
No origination fees are listed or stated.
Some MCA lenders allow merchants to apply for additional funding once a percentage of the initial advance has been paid off, but Alfa Advance Capital doesn’t state whether this option is available to its customers. Its focus on providing funding to nearly all industries with as few restrictions as possible suggests renewal may be an option, but it’s always in the best interest of a merchant to consider the effect additional loan payments would have on cash flow. Taking out another advance adds not only the cost of the principal but also the associated fees, and repeated renewals can create the kind of inescapable debt cycle Alfa Advance Capital’s consolidation services are designed to address.
There is typically no benefit to paying back an MCA early. In fact, the faster the amount of the advance is returned to the lender, the higher the equivalent APR. Businesses must pay the principal and all fees discussed in the original loan agreement at whatever rate their daily credit and debit sales allow.
Reverse consolidation is already a form of debt relief and can ease the burden of high interest rates on existing cash advances and loans.
Cash advances are intended for business purposes only, although merchants typically don’t have to provide information on how they plan to use the money. Due to the high interest rates often associated with MCAs, this type of funding is best reserved for emergency circumstances or short-term needs. Alfa Advance Capital states several common uses for MCAs, including:
- General operating expenses
- Overhead costs
Merchants may also request MCA loans to support their companies during seasonal lulls or get them through unexpected slow times. Businesses anticipating an influx of cash in the near future but requiring just a little extra capital to make it until the opportunity comes through can also make use of an MCA.
Reverse consolidation services allow businesses to pay down existing debt by providing enough to cover monthly payments to creditors and lenders and taking a much smaller payment in return. Merchants can use the money saved with this method to get finances in order and bring the business to a place where loans are no longer required to keep it afloat.
Licenses & Accreditations
At the time of this writing, Alfa Advance Capital is not accredited by the BBB or any other institution. No press coverage is available at this time.
Company Contacts Details
- (305) 638-0049
- Jason Sankov, COO and Director of ISO relations