02 December

Sticky

When are Merchant Cash Advances Loans? When Do They Cross the Line?

A row of toppled dominoes lays next to a row of standing dominoes. Merchant cash advance debt can have a domino effect on many businesses.

If you are a business owner struggling under debts from a merchant cash advance, you may be asking yourself how the advance you received can be legal. You may be wondering what you can do to get free of your debt and return to operating your business as usual. You may also be asking yourself some variation of the following questions: When may a merchant cash advance be considered by a court of law or a governmental regulatory agency to be a “loan”, as opposed to a “purchase of future receivables”? Under what circumstances does a merchant cash advance lose its unregulated...

09 October

0 Comments

Sticky

The State of Merchant Cash Advance During the Coronavirus Pandemic

Posted by Anthony Rumore

in Merchant Cash Advance

The MCA industry has experienced steady growth since its inception in 2008. Last year, MCA lenders funded an estimated $19 billion to small businesses, representing a substantial increase to the total industry funded amount of $8 billion, only five years ago. Now, in a time of global economic slowdown due to the ongoing pandemic, regulators from the Federal government and certain state governments have begun to take notice of the merchant cash advance industry. In this article we will look at the current state of the Merchant Cash Advance industry, the scrutiny the federal government has placed the industry under, MCA brokerage’s...

07 September

0 Comments

Sticky

How to Evaluate the Source of Information for Merchant Cash Advances

Posted by Anthony Rumore

in Merchant Cash Advance

black dice on a black background spelling out the words fact and fake

The quality of information found online is extremely varying. Anyone can post information on the Internet and not all online sources are equally reliable, valuable, or accurate. It is important to carefully evaluate information found online before relying on it for your own research. You are wondering about merchant cash advance as an alternative financing option for your business. You begin an internet search and find what you believe are valuable bits of information to help guide you in your process of assessing a merchant cash advance option for your business. Everything you find on the top results of a Google search...

07 September

0 Comments

Sticky

6 Debt Restructuring Strategies That Consolidation Companies Won’t Mention

Posted by Anthony Rumore

in Business Debt, Merchant Cash Advance

businessman arranging wooden blocks with letters to spell the word debt

With the current slowing of many industries due to the COVID-19 pandemic, there is a good chance that your business cash flow has slowed as well. While MCA lenders have been slightly more flexible throughout the Coronavirus pandemic, some may still be unwilling to work with their borrowers. You may be in a difficult situation where you are no longer able to pay for your merchant cash advance debt. Maybe your cash flow is solid, but you did not realize the merchant cash advances you accepted would make such a dent in your daily cash flow. You’ve searched the internet and found...

10 August

0 Comments

Sticky

How Small Businesses Owners Can Protect Their Personal Assets from Business Debt

Posted by Anthony Rumore

in Business Debt

businessman-holding-small-cardboard-cutout-umbrella-over-miniature-bundles-of-money-to-symbolize-protecting-your-personal-assets

If you don't properly protect your personal assets, which you have worked very hard to accumulate, those assets can be lost very quickly as a result of a judgment or possible bankruptcy. Fundamental asset protection begins with implementing affordable, solid, reliable strategies and exercising good fiscal and business habits. There are laws on the books affording measures that you can easily implement to provide you with a great deal of protection in the event of a claim or lawsuit. Bad things happen to good people all the time. You do not necessarily need to be irresponsible or negligent to be...

10 August

0 Comments

Sticky

How to Prioritize The Repayment Of Your Business Debt Obligations

Posted by Anthony Rumore

in Merchant Cash Advance

businessman-using-calculator-and-receipts-to-figure-his-merchant-cash-payments

With a seemingly overwhelming amount of business debt on the balance sheet and creditors calling to collect, your head may be swimming. Who should you pay first? What will be the plan to right the ship and nurse your business back to health? Paying off business debt can be a long, trying journey. Many lose motivation and simply give up, especially when facing other financial responsibilities competing for limited resources. Therefore, it is critically important to create a plan to address the problem head on and take control of your organization’s business debts obligations, once and for all. Thankfully, there are a...

10 August

0 Comments

Sticky

Merchant Cash Advance Reconciliation Clauses and the “Look Back” Reality

Posted by Anthony Rumore

in Merchant Cash Advance

silhouettes-of-two-businessmen-sitting-at-a-table-in-front-of-window-with-view-of-office-park

If your business is struggling to pay back a merchant cash advance due to a decrease or complete halt in business revenue or cash flow, then it is in your best interest to request a readjustment on your payment schedule from your lender. Merchant cash advance contracts are full of clauses and junk fees that work to your lenders advantage, but there are certain clauses that work for you too. In order to not be considered an illegal loan, merchant cash advance companies must allow you to request a change in your payment plan based on your business’ revenue. In this...

10 August

0 Comments

Sticky

Does Merchant Cash Advance Regulation Exist?

Posted by Anthony Rumore

in Merchant Cash Advance

wooden-gavel-next-to-bundle-of-american-hundred-dollar-bills-held-in-roll-by-a-rubber-band

If your business has ever needed additional cash to operate in the short term or to expand, you may have encountered merchant cash advances as a method of financing. While considering this option, you may have asked yourself what the difference is between alternative financing and traditional loans or questioned whether it affects credit scores the same way. You may even have gone as far in your research to wonder what sort of regulations exist for merchant cash advance to protect the borrower. Unfortunately, very few protections, if any, exist for people who take out one of these advances, though there...

14 July

0 Comments

Sticky

Is Merchant Cash Advance Default a Potential Reality? Critical Steps to Consider During a Business Slowdown

Posted by Anthony Rumore

in Merchant Cash Advance

businessman-holding-a-red-arrow-pointing-down-above-boxes-stack-pile

Merchant cash advances can prove tempting to small business owners in need of fast cash, especially for those businesses that earn much of their money through credit card transactions. If you have found yourself with too much debt from merchant cash advances, it is a healthy response to be concerned. However, if you understand the methods to minimize your risk and/or to protect yourself from hyper aggressive collection tactics, you can successfully mitigate your risk. You may be at risk of defaulting on your Merchant Cash Advance (MCA) agreement with one or more lenders if your business has been declining (for instance...

13 July

0 Comments

Sticky

What You Know About Traditional Business Funding Does Not Apply to Merchant Cash Advance

Posted by Anthony Rumore

in Merchant Cash Advance

man-signing-business-loan-documents-while-loan-officer-points-to-document

You may be in a position where your business is booming but you need cash to expand your business. Or maybe you had a few bad months and need some additional capital to give you some breathing room. In either situation you may decide that now’s the time to find new funding. When you start researching your options on the internet, you will most likely be exposed to various types of funding sources to help meet your business needs — traditional loans, lines of credit, and alternative funding. A traditional business loan and a merchant cash advance are two of the most...

Blog