The biggest mistake brokers make isn’t missing opportunities—they wait until the merchant is already in trouble.
Every funding challenge has a beginning.
The problem is, most merchants don’t recognize it until months later.
By the time cash flow pressure becomes obvious, options have often become more limited, existing funding obligations may have become more difficult to manage, and conversations that could have been proactive become reactive.
The best brokers understand that timing is often just as important as the funding solution itself.
The 90-Day Blind Spot
One statistic should get every broker’s attention.
Research suggests that many businesses begin showing signs of financial distress well before a formal default or bankruptcy filing, making early intervention critical.
In other words, by the time many merchants realize they have a cash flow problem, the underlying issues have often been building for weeks—or even months.
For brokers, this creates a valuable opportunity.
The earlier the conversation begins, the more funding options may be available.
Recognizing the Early Warning Signs
Most merchants don’t call because everything is going well.
They call because something has changed.
The key is recognizing those changes before they become bigger problems.
Questions to ask include:
- Has cash flow become tighter over the past few months?
- Have sales slowed while operating expenses remained the same?
- Are existing MCA remittances becoming more difficult to manage?
- Has the business delayed purchasing inventory or hiring because of cash flow concerns?
- Is the current funding structure still supporting the business?
The answers often reveal opportunities long before a merchant reaches a financial crisis.
The Conversation
The best brokers don’t begin with products.
They begin with understanding what has changed.
Sometimes the merchant simply needs additional working capital.
Other times, existing MCA obligations have become part of the challenge.
The sooner those conversations happen, the more strategic the recommendations can become.
🟪 BROKER TIP
Don’t wait for your merchants to call. Start the conversation before they think they need it.
Potential Funding Strategy
If the merchant simply needs additional working capital, an MCA may provide the liquidity needed to support the business.
If existing MCA obligations are contributing to cash flow pressure, a Reverse Consolidation may improve cash flow by reducing the burden of existing MCA remittances—helping stabilize the business before those challenges become more difficult to manage.
🟪 BUSINESS OBJECTIVE
Act Early
Help your merchants address cash flow challenges before they become funding challenges.
Where Nexi Fits
At Nexi, every merchant conversation begins with understanding the business—not assuming every merchant needs the same solution.
Whether your merchant needs additional working capital through an MCA or a Reverse Consolidation to improve cash flow by reducing the burden of existing MCA remittances, our objective remains the same: recommend the funding strategy that best supports where the business is today—and where it’s headed next.
The longer cash flow pressure goes unaddressed, the fewer options your merchants may have. If your merchant is carrying multiple MCA obligations, let’s talk while more options are still on the table.
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Sources & Further Reading
- Source: Nperspective: https://www.nperspective.com/business-resources/insights/the-90-day-window-what-to-do-before-filing-business-bankruptcy/?utm_source=chatgpt.com
