68% Reduction in Acquisition Costs Using Aged MCA Leads
How Merchant Advance transformed their profitability with cost-effective lead strategies
Executive Summary
Merchant Advance, a mid-sized alternative lender founded in 2015, partnered with Master MCA to optimize their customer acquisition costs and improve profitability. By implementing our aged MCA leads strategy, they achieved a remarkable 68% reduction in acquisition costs within just 6 months.
The implementation resulted in 145% higher profit margins, 89% improvement in lead-to-funding conversion, and a 2.3x increase in monthly funding volume. This case study explores how Merchant Advance transformed their cost structure and significantly improved their bottom line using Master MCA's aged leads approach.
Company Background
Founded in 2015, Merchant Advance has established itself as a reliable provider of merchant cash advances and short-term business loans. With 45 employees and headquarters in Tampa, Florida, they focus on serving small to medium-sized businesses across various industries throughout the United States.
Prior to partnering with Master MCA, Merchant Advance was struggling with rising customer acquisition costs that were eating into their profit margins. They needed a cost-effective solution to maintain growth while improving profitability in an increasingly competitive market.
Company Facts
- Founded: 2015
- Employees: 45
- Location: Tampa, FL
- Industry: Alternative Lending
- Focus: MCAs, Short-term Loans
The Challenge
Before partnering with Master MCA, Merchant Advance faced several significant challenges that were threatening their profitability and growth potential:
Skyrocketing Acquisition Costs
Customer acquisition costs had increased by 180% over 18 months due to increased competition and rising advertising costs, severely impacting profit margins.
Limited Marketing Budget
As a mid-sized company, they couldn't compete with larger funders on expensive lead sources, limiting their growth opportunities.
Declining Profit Margins
High acquisition costs were eating into profit margins, making it difficult to reinvest in growth and compete effectively in the market.
Inefficient Lead Utilization
They were only working fresh leads and missing opportunities with prospects who might be ready to fund after initial consideration periods.
The Solution
After evaluating several cost-reduction strategies, Merchant Advance chose Master MCA's aged leads approach for its cost-effectiveness and proven conversion potential. The implementation included:
Premium Aged Leads Program
Master MCA provided 1,500 aged leads monthly (30-90 days old) at a fraction of the cost of fresh leads, with detailed prospect history and previous interaction data.
Nurturing Strategy Development
Developed specialized nurturing sequences and follow-up strategies designed specifically for aged prospects who had previously shown interest in MCA funding.
Automated Follow-up Systems
Implemented automated email and SMS sequences to efficiently nurture aged leads and identify prospects ready to move forward with funding.
Conversion Optimization Training
Master MCA provided specialized training for Merchant Advance's sales team on converting aged leads and overcoming common objections from previously contacted prospects.
Implementation Timeline
Initial Assessment & Strategy Development
Analyzed existing lead sources and developed a comprehensive strategy for integrating aged leads into their sales process.
Aged Leads Integration & Team Training
Implemented aged leads workflow and trained sales team on nurturing strategies for older prospects.
Process Optimization & Automation
Developed automated follow-up sequences and optimized conversion processes for aged lead campaigns.
Volume Scaling & Performance Analysis
Increased aged lead volume and implemented comprehensive tracking for ROI analysis.
Full Implementation & Cost Optimization
Achieved full operational capacity with 68% reduction in acquisition costs and improved margins.
Results Analysis & Future Planning
Analyzed comprehensive performance metrics and developed long-term growth strategy.
The Results
Within 6 months of implementing Master MCA's aged leads strategy, Merchant Advance achieved remarkable results that transformed their business profitability:
Cost Analysis
Before Aged Leads
- Cost per acquisition: $750
- Monthly lead budget: $45,000
- Conversion rate: 3.2%
- Monthly funding volume: $2.8M
- Profit margin: 12%
After Aged Leads
- Cost per acquisition: $240
- Monthly lead budget: $18,000
- Conversion rate: 6.1%
- Monthly funding volume: $6.4M
- Profit margin: 29.4%
Future Plans
Following their success with Master MCA's aged leads strategy, Merchant Advance has developed an ambitious growth strategy:
Expand Aged Leads Volume
Merchant Advance plans to increase their aged leads volume by 200% over the next 12 months to support continued growth while maintaining low acquisition costs.
Geographic Expansion
Using the cost savings from aged leads, they're expanding into new geographic markets across the Southeast and Midwest regions.
Product Diversification
Leveraging improved margins to develop new funding products including equipment financing and working capital loans.
Technology Investment
Investing in advanced CRM and automation tools to further optimize their aged leads nurturing process and improve conversion rates.
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