Jumbo Advance
A jumbo advance is an MCA product sized $250,000-$2,000,000+ — serving larger established merchants with substantial revenue — typically requiring deeper underwriting documentation, often syndicated across multiple funders, and structured with longer repayment terms than standard MCA.
Why This Matters
Jumbo advances bridge the gap between standard MCA (typically capped at $250K-$500K per funder) and traditional commercial financing. Underwriting requires more comprehensive documentation: 12+ months of bank statements, financial statements (sometimes audited), business tax returns, and detailed business plan or use-of-funds documentation. Repayment terms typically extend to 12-24 months for jumbo structures. Syndication is common — multiple funders co-funding the advance to spread risk. Merchants accessing jumbo MCA typically have $500K+ monthly revenue, 3+ years time-in-business, and strong bank statement profiles.
Frequently Asked Questions
Frequently Asked Questions
What qualifies merchants for jumbo MCA?
Typically $500K+ monthly revenue, 3+ years time-in-business, strong bank statement profile (low negative days, healthy ending balances), and demonstrated capital deployment capability (existing assets, business growth track record). Underwriting is more conservative than standard MCA.
How does jumbo MCA pricing differ from standard MCA?
Jumbo advances typically price more competitively (1.15-1.25 factor rates versus 1.30-1.45 standard MCA) reflecting lower risk and competitive pressure from traditional commercial financing alternatives. Longer repayment terms also reduce effective APR-equivalent cost relative to factor rate.