MCA (Merchant Cash Advance) funding - Good investment?

[Jay West]

Hi,

I was wondering if anyone had any experience with the investment side of MCAs.

I was approached about funding MCAs with high returns (factor rates up to 1.4 for 100 business day loans).

Seems like a solid investment if diversified in enough buckets. This is assuming the failure rate is anywhere near 15% which is what I was told.

Thoughts?