Introduction:

If your business didn’t qualify for the best terms in your MCA offer, don’t panic—there’s always room for improvement. Much like improving your personal credit score, you can take steps to improve your MCA paper grade. And the better your grade, the better your financial terms.

Improving your paper grade involves making strategic adjustments to your business’s financial health. By focusing on boosting your credit card sales, stabilizing your revenue, reducing debt, and improving your business credit, you can shift your standing and secure more favorable offers in the future.

1. Boost Your Credit Card Sales Volume

Since MCA repayments are typically tied to your credit card sales, increasing this volume can significantly improve your paper grade. Businesses that rely heavily on cash transactions may want to encourage customers to pay by card to improve their standings with funders.

Strategies to Increase Credit Card Sales:

  • Incentivize Card Payments: Offer customers discounts or rewards for paying with a credit card instead of cash. Not only will this boost your credit card sales volume, but it will also create a more predictable cash flow.
  • E-commerce Expansion: If you don’t already have an online sales channel, now is the time to start. Online sales typically involve credit card payments, which increases your volume and makes your business more attractive to MCA providers.

2. Reduce Your Debt Load

Another major factor in your MCA paper grade is your business’s debt. If you’re carrying multiple loans or lines of credit, MCA providers may view your business as too risky. Reducing your debt can make a significant difference.

Steps to Reduce Your Debt:

  • Pay Down High-Interest Debt: Focus on paying off loans with the highest interest rates first. This will free up cash flow and improve your overall financial health.
  • Consolidate Debt: If you have multiple loans, consider consolidating them into a single loan with a lower interest rate. This simplifies your repayment structure and demonstrates to MCA providers that you’re managing your debt responsibly.

3. Stabilize Your Revenue

Consistent revenue is another key factor in improving your MCA paper grade. Businesses with unpredictable or seasonal revenue may find it difficult to get good terms.

Ways to Stabilize Your Revenue:

  • Launch Promotions During Slow Periods: Offer discounts, run targeted marketing campaigns, or introduce new products during your slow season to keep revenue steady.
  • Diversify Your Offerings: If your business experiences large seasonal dips, consider offering new products or services that are in demand year-round. This will make your business appear more stable to funders.

4. Improve Your Business Credit

Just as your personal credit score impacts your ability to get a loan, your business credit score plays a crucial role in determining your MCA paper grade.

Steps to Improve Business Credit:

  • On-Time Payments: Ensure you’re paying vendors, suppliers, and lenders on time, if not early. Late payments can damage your business credit score.
  • Dispute Errors on Your Credit Report: Check your business credit report regularly for errors. If you find any inaccuracies, dispute them with the credit bureaus.
  • Build Trade Lines: Establish credit with vendors who report your payments to credit bureaus. Paying these vendors on time will help build your business credit.

Conclusion (Part 2):

Improving your MCA paper grade doesn’t just benefit you in the short term—it positions your business for future success. By taking the necessary steps to increase your credit card sales, reduce debt, stabilize revenue, and improve your business credit, you can secure better terms, lower factor rates, and more manageable repayment schedules. And with those improvements, you’ll be ready to take your business to the next level without the financial strain.