Comvest increases commitment to small business lender

As part of a trio of private debt funds, Comvest has increased Merchant Cash and Capital's term loan to $75m.

A consortium led by US private investment firm Comvest Partners has increased the funding capacity of small business lender, Merchant Cash and Capital (MCC), by expanding a secured term loan to $75 million (€53.9 million; £45.1 million), Comvest said in a statement.

Comvest Partners’ Comvest Capital II debt fund led the financing, which increases MCC’s debt facilities to $100 million.

Greg Reynolds, managing director at Comvest, said in a statement: “We have enjoyed watching the product growth and the continuous improvement of MCC over the last several years.

“We are confident MCC is well-positioned for the future and are delighted to increase our capital commitment and bring [private debt groups] Crystal Financial and Medley Capital into the new term loan,” he added. 

Stephen Sheinbaum, chief executive officer at MCC commented: “Our new term loan gives us the capital needed to invest in technology and product development, and catapult the growth of MCC from the current levels of funding $20 million per month to more than double that over the course of the next year.

“Like the businesses we finance, we need resources to develop more programs and services for our customers, and that is exactly what this new financing will allow us to do.”

Jeffrey Beckwith, chief financial officer, added, “Since 2006, MCC has not had a need to raise additional equity. However, with the closing of this new facility, we now feel well positioned to pursue and consider strategic debt and equity capital raise opportunities.”

MCC has provided more than $650 million in debt to more than 13,000 business owners. The firm said that 2013 had been a watershed year with the launch of its ASAP technology, streamlining and automating the approval-to-funding process for merchants and partners alike, and decreasing the time it takes from 24 hours to 24 seconds.

Comvest Partners provides financing solutions to lower mid-market companies through its equity and debt funds and has $1.2 billion of assets under management.