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Merchant Cash Advance

Business Debt Law Group > Merchant Cash Advance

The State of Merchant Cash Advance During the Coronavirus Pandemic

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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...

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How to Evaluate the Source of Information for Merchant Cash Advances

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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...

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6 Debt Restructuring Strategies That Consolidation Companies Won’t Mention

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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...

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How to Prioritize The Repayment Of Your Business Debt Obligations


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...

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


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...

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Does Merchant Cash Advance Regulation Exist?


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...

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


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...

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


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...

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Everything You Need to Know About Confessions of Judgment


When you sign a Confession of Judgment, you sign away your rights to the legal process. A Confession of Judgment (Cognovit Note/Warrant of Attorney) is an extraordinary weapon that creditors can use to remedy loan defaults. In short, It allows Merchant Cash Advance companies and other creditors to enter a judgment against debtors without having to give notice when a complaint is filed in court and without a hearing where a borrower would have the ability to defend themselves. What does it look like in practice, though? The Aftermath of a Confession of Judgment Filing You wake up and go to work as you...

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What are UCC-1 Lien Notice Filings and What Do You Do if Your MCA Lender Files One Against You?


  Did you just receive a call from one of your vendors telling you that they received a UCC lien from your merchant cash advance lender? Is the lender demanding that your vendor pay them directly instead of paying you? Hopefully we can explain here what is going on and advise you as to what your options are. When you received your merchant cash advance, your lender prepared and recorded what is referred to as a UCC-1 filing. What is a UCC Filing? A UCC filing, also known as a UCC lien or a UCC-1, is a financing statement which lenders can file against...

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