The debt service coverage ratio is a very important factor when it comes to commercial real estate.
While they might be similar in that they give businesses access to capital, they are significantly different.
Although fix and flips have the potential to be super profitable, a lot of money goes into the process from start to finish, making it a costly project. This is where fix and flip loans come in to help mitigate some of those costs.
An MCA loan works best for any business that has strong sales but cannot qualify for a loan because they have no collateral or a low credit score.
Many times, a company cannot afford to pay cash and drain their cash reserves in order to acquire or renew the right materials to operate their business.