At a Glance
Rating Breakdown
About Fenix Capital Funding
Fenix Capital Funding is a New York-based MCA provider founded in 2015 that has carved out a specialized niche in the second and third position funding space. While the majority of MCA companies refuse to fund businesses that already have an active advance due to the elevated risk of default, Fenix has built its entire business model around underwriting these exact scenarios. Their proprietary cash flow analysis calculates what they call "net available daily cash" by subtracting all existing MCA daily payments, fixed operating expenses, payroll obligations, and estimated tax liabilities from the merchant's average daily deposits. A business typically needs to show net available daily cash of at least $200-$300 after existing obligations to qualify for a second-position advance. Factor rates for second-position deals range from 1.25 to 1.45, while third-position advances carry rates of 1.35 to 1.50, reflecting the compounding risk of multiple simultaneous obligations. With over $300 million funded, Fenix Capital has developed deep expertise in evaluating stacking risk. Their underwriting team manually reviews every application, specifically analyzing the first-position funder's remaining balance, daily payment amount, estimated remaining term, and whether the first-position agreement includes an anti-stacking clause. Fenix will not fund if the first-position funder explicitly prohibits stacking and actively enforces that clause, but they will fund if the first-position agreement is silent on stacking or if the funder is known to tolerate it. Fenix files their own UCC-1 lien in second position and structures daily ACH payments to debit after the first-position payment has cleared, typically scheduling their pull for early afternoon rather than morning. Origination fees range from 2% to 5% of the advance amount, higher than first-position funders, and repayment terms are typically shorter at 3 to 12 months to reduce cumulative exposure time.
Key Features
Second & Third Position Specialist
Fenix Capital is purpose-built for businesses that already have one or two active MCA positions. Their underwriting model calculates net available daily cash after all existing obligations, requiring a minimum of $200-$300 in free daily cash flow before approving a supplemental advance. They evaluate the first-position funder's remaining balance, daily payment, and anti-stacking clause language before making a decision, ensuring they only fund situations where the merchant can realistically sustain the additional burden.
Proprietary Cash Flow Analysis
Fenix's underwriting goes far beyond reviewing bank balances. Their model subtracts each existing MCA's daily ACH debit, fixed monthly expenses like rent and payroll, estimated quarterly tax obligations, and seasonal revenue adjustments to arrive at what they call the merchant's true daily surplus. This analysis requires manual review by an experienced underwriter who can interpret irregular deposits, large one-time transactions, and the difference between organic revenue and internal transfers or loan proceeds.
Fast Supplemental Funding
Fenix can approve and fund a second-position advance within 24 hours of receiving a complete application, which includes bank statements and details of existing MCA agreements. They understand that businesses seeking second-position funding typically face urgent capital needs such as emergency repairs, payroll shortfalls, or time-sensitive inventory purchases. Their afternoon ACH pull schedule is specifically designed to avoid competing with the first-position funder's morning debit.
Transparent Stacking Assessment
Before finalizing any second or third position advance, Fenix provides a full obligation summary that shows the merchant's total daily ACH burden across all positions, the combined effective cost of capital, and a projected timeline showing when each position is expected to be fully repaid. This transparency is rare in the stacking space, where many funders deliberately obscure the cumulative cost. Fenix's philosophy is that informed merchants default less often.
How It Works
Submit Application
Complete the online application and provide 3 months of bank statements along with details of any existing MCA agreements.
Cash Flow Analysis
Fenix's team evaluates your remaining cash flow after existing obligations to determine how much additional capital your business can handle.
Receive Position Offer
Get a clear offer showing the advance amount, factor rate, daily payment, and how it fits alongside your existing repayment schedule.
Accept & Fund
Sign the agreement electronically and receive supplemental funds in your business account within 24-48 hours.
What They Do
- Second Position MCA
- Third Position MCA
- Merchant Cash Advance
- Revenue-Based Financing
Debt Types They Take On
- Merchant Cash Advance
- Second Position Advance
- Third Position Advance
- Revenue-Based Financing
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Restaurant Needing Emergency Kitchen Repairs
A Mexican restaurant in Queens, NY with an existing $50,000 first-position MCA (daily payment of $310, 5 months remaining) needed an additional $30,000 urgently after a commercial refrigerator and hood system both failed. The restaurant was generating $2,800 in average daily deposits. Three other MCA providers declined the application immediately upon learning about the existing advance.
Auto Repair Shop Bridging Payroll Gap
An auto repair shop in suburban New Jersey with an existing $75,000 first-position MCA paying $420 daily needed $20,000 to cover a two-week payroll gap caused by a major insurance reimbursement delay. The shop employed 8 mechanics and was generating $3,200 in average daily deposits. The owner had already missed one payroll and risked losing key employees.
Pros & Cons
Pros
- One of the few MCA providers that specifically underwrites second and third position advances, giving businesses with existing obligations a funding option that nearly all other companies refuse to provide.
- Fenix's proprietary net available daily cash analysis provides a more accurate risk assessment than simple bank balance reviews, reducing the likelihood of approving merchants who cannot sustain the additional payments.
- Funding is typically delivered within 24 hours of a complete application, which is critical for businesses in second-position scenarios that are often facing urgent cash flow emergencies.
- The full obligation summary provided before signing shows total daily burden across all positions, giving merchants a clear picture of their combined repayment commitment rather than hiding the cumulative cost.
- Afternoon ACH scheduling avoids competing with first-position morning debits, reducing the risk of NSF returns that could trigger defaults on both the first and second position advances simultaneously.
Cons
- Factor rates of 1.25-1.50 for second position and 1.35-1.50 for third position are significantly higher than first-position rates, and when combined with the cost of the existing advance, the effective annualized cost of all capital can exceed 150-200%.
- Origination fees of 2-5% are deducted from the advance amount at funding, meaning a $30,000 advance with a 4% origination fee delivers only $28,800 in net proceeds while the full $30,000 is subject to the factor rate calculation.
- Stacking advances compounds the risk of default because multiple daily ACH debits drain the business account simultaneously, and a downturn in revenue can quickly create a cascade of returned payments across all positions.
- Fenix's maximum advance of $250,000 in any single position may not be sufficient for businesses with large capital needs, particularly in industries like construction or healthcare where single funding requirements can exceed $500,000.
User Reviews (28)
solid funder not perfect but reliable
good funder, not the cheapest. $120,000 at 1.28 for my daycare. Everything was professional and transparent. I just think the factor rate could be lower given my revenue ($32K/mo) and clean bank statements. Ace Funding might have been cheaper but Fenix Capital Funding was faster.
solid B+ experience
Applied to Fenix Capital Funding and Ace Funding simultaneously. Fenix Capital Funding was faster and the rate was slightly better (1.26 vs 1.22). Got $8,000 deposited 2 days later for my dental practice. Process was smooth. Took off one star because the origination fee wasn't mentioned until contract stage.
this is how business funding should work
Got $150,000 from Fenix Capital Funding for my flooring company. The whole process was honestly smoother than I expected -- applied on a Monday, had the money in my account by the next business day. Factor rate was 1.25 which tbh is way better than the 1.21 I was quoted by Yellowstone Capital. Daily ACH is $1,019 which is manageable on my $55K/month. Already halfway through repayment and zero issues. Would 100% use them again.
they actually delivered
BEST DECISION I MADE THIS YEAR was going with Fenix Capital Funding instead of stacking two advances from different companies. Got $120,000 in one clean position at 1.22. Repaying $728/day which is totally manageable on $65K/month revenue. My accountant said this was the least predatory MCA contract he's reviewed.
funded fast rate was fair
Easy process, funded $100,000 for my pest control company. Factor rate 1.22 is fair for what it is. Daily ACH of $632 is manageable. Rep Mike was professional and responsive throughout.
not terrible but wouldnt rush to recommend
Mixed feelings about Fenix Capital Funding. They funded $80,000 for my staffing agency which I needed, but the 1.39 factor rate means I'm paying back $111,200. That's a LOT of money. Daily ACH of $520 is eating into my cash flow more than expected. Would I do it again? Probably. But I'd negotiate harder on the rate.
daily debits are killing my cash flow
Not impressed with Fenix Capital Funding. Applied for $120,000, they approved a lower amount at a 1.39 factor rate which is honestly too high. Total repayment of $166,800? That's $46,800 in fees. I know MCAs aren't cheap but this felt excessive. The daily debit of $847 is manageable but expected better from them.
pleasantly surprised tbh
Got $120,000 from Fenix Capital Funding for my gym. The whole process was honestly smoother than I expected -- applied on a Monday, had the money in my account by the next morning. Factor rate was 1.28 which tbh is way better than the 1.42 I was quoted by Yellowstone Capital. Daily ACH is $821 which is manageable on my $28K/month. Already halfway through repayment and zero issues. Would 100% use them again.
worst financial decision ever
Absolutely terrible. Fenix Capital Funding took forever to fund instead of the 2 days later they promised. Then the daily debit was higher than quoted -- the contract had a different number and I didn't catch it until after signing. Now I'm stuck paying $798/day on a $120,000 advance.
decent funder fair terms
Fenix Capital Funding approved me for $150,000 with a 665 credit score which was honestly surprising. Factor rate was 1.26 so total repayment is $189,000. It's a lot in fees but I needed capital and banks weren't an option. Used the money for a new truck and ROI has been positive.
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Important Merchant Cash Advance Disclaimers
- A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Factor rates, not APRs, are used to express the cost of capital. Effective APRs on merchant cash advances can range from 40% to over 350% depending on the term and factor rate.
- Repayment is typically collected daily or weekly via automatic ACH debits or a percentage of credit card sales. This means your repayment amount fluctuates with revenue but withdrawals occur every business day, which can strain cash flow during slow periods.
- Most MCA agreements require a personal guarantee from the business owner. In the event of default, the MCA provider may pursue the owner's personal assets, including bank accounts and property.
- MCA providers commonly file UCC-1 liens against your business assets. This lien may prevent you from obtaining additional financing until the advance is fully repaid and the lien is released.
- Merchant cash advances are not regulated by federal lending laws such as the Truth in Lending Act (TILA). State regulations vary widely, and some states have limited consumer protections for MCA products.
- Stacking multiple merchant cash advances (taking a second advance before the first is repaid) significantly increases the risk of default and can lead to aggressive collection actions including confessions of judgment in some jurisdictions.
- Zogby does not provide merchant cash advances or business financing. We are an independent comparison service. We do not fund advances, process applications, or guarantee approval on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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