Question 1

What is the cheapest way to finance a new location?

Accepted Answer

The lowest true cost is usually the capital that demands the least from your business. An SBA loan earns its rate through personal guarantees, collateral, covenants, and 60 to 90 days of processing and diligence. If you qualify and are willing to carry all of that, it deserves a look. An MCA is fast but often lands at 30 to 50% effective cost through daily deductions, and rarely covers the cost of a new build. Equity is the most expensive of all, because it never stops charging you. Bonside caps total repayment at 1.12x to 1.5x with no guarantee, no collateral, and payments that flex with revenue, which is why, counted honestly, it is often the cheapest capital an operator can actually take.

Question 2

Is revenue-based financing better than an MCA?

Accepted Answer

For funding growth, yes, in almost every case. MCAs are built for cash crunches and speed: small checks in 24 to 72 hours, daily deductions, effective costs that often reach 50% APR. Our revenue-based financing collects monthly, caps the total, and writes checks large enough to fund real growth while they are repaid. If capital is needed this week, take the advance. If capital is funding the next twelve months, the math is not close.

Question 3

Can I refinance a merchant cash advance?

Accepted Answer

Yes, and it is one of the most common uses of Bonside capital. Replacing daily deductions with a monthly revenue share typically frees meaningful cash flow immediately, and consolidating multiple advances into one agreement simplifies the whole balance sheet.

Question 4

Do I need a personal guarantee for growth capital?

Accepted Answer

Not from Bonside. Banks almost always require one, and many MCAs do too. We underwrite the business rather than the owner's personal assets, so your home and savings are never part of the agreement.

Question 5

How much equity should I sell to open a new location?

Accepted Answer

None, if you can avoid it. A new location is a repeatable, cash-flowing asset, and selling permanent ownership to fund one trades uncapped future earnings for a one-time check. Sell 10% today and 10% of every dollar the business ever earns is gone. And the math compounds against a growing operator: if every new location costs another slice of equity, dilution scales with your ambition, and by location eight or ten the person who built the business is a minority owner in it. Capped capital like a Bonside RRA ends at 1.12x to 1.5x, no matter how many doors you open. Save equity for the moments that genuinely require a partner.

Question 6

What does brick-and-mortar growth capital cost?

Accepted Answer

It ranges widely by structure. Bank debt runs 6 to 15% but requires guarantees, collateral, and history. MCAs often land at 30 to 50% effective APRs. Equity is the most expensive over time because it is uncapped. Bonside collects 1.12x to 1.5x of capital provided, with the monthly revenue share set by your specific profile.

Question 7

Can I get financing for a location I have not opened yet?

Accepted Answer

Yes. This is the gap Bonside was built for. Banks underwrite history and a new location has none, so we underwrite the whole company and let your existing locations fund the next one. MCAs cannot do it either, since they advance against an existing merchant account, and rarely meet the check size a buildout requires.

Question 8

How long does it take to close?

Accepted Answer

3 weeks from first conversation to funding, most of it underwriting financial and accounting data. Faster than a bank at 60 to 90 days, slower than an MCA at 24 to 72 hours. The diligence is why our portfolio has zero defaults.

How Bonside compares.