How MCAs Can Help Florists

A florist shop in need of a MCA

The floral industry faces economic headwinds and floral shops are turning to merchant cash advances to manage the seasonality associated with inventory and to take advantage of special offers from suppliers. While these alternative funding products provide florists with quick access to working capital, the risk of default is high.

If your floral business is struggling under the terms of a merchant cash advance (MCA) agreement, turn to Our debt relief specialists know how to fight back against the high-pressure collection tactics MCA providers use and can help to reconcile your merchant cash advance. Contact our office now by completing the convenient intake form.

Florist & Floral Shop Merchant Cash Advances

Merchant cash advances give flower shops buying power than can result in better terms with vendors and cost savings. Florists can also use MCAs for business expenses such as:

  • Emergency funding to cover unexpected expenses
  • Equipment and new products if your business needs an equipment upgrade
  • Payroll and miscellaneous taxes when the business is slow
  • Stocking up for peak seasons, such as Thanksgiving, Christmas, and Valentine’s Day
  • Expanding, renovating, or adding additional store locations

MCA providers advertise quick approvals, require little documentation, often wire funds to your bank account in 3-5 business days, and bad credit is not a factor. If it sounds too good to be true, it probably is. Merchant cash advance agreements typically include onerous repayment terms that may jeopardize your floral business. 

How Do Merchant Cash Advances Work?

A merchant cash advance is not a loan, but the purchase of future receivables in exchange for a lump sum of cash upfront. The MCA provider takes withdrawals from your checking account based on an agreed-upon percentage of your daily sales (known as a holdback amount) until the advance is paid in full. The term can range from as little as 3 months to no longer than 18 months.

MCAs don’t have interest rates or annual percentage rates like business loans, but rather a factor rate that is expressed as a decimal figure ranging from 1.2 to 1.5. The factor rate is based on the amount of the advance, your prior sales history, and your credit rating: the lower your credit, the higher the factor rate. The factor rate is applied to the holdback amount. MCAs are more expensive than business loans because these products are short-term financings. When the factor rate is converted into an APR, the figure can rise into the triple digits.

What Happens If My Floral Shops Defaults on a Merchant Cash Advance

Many MCA providers advertise that no personal guarantee is required, but that is not always the case. In any event, MCA agreements usually include a provision known as a confession of judgment whereby you acknowledge liability for the advance and waive any legal defenses. If your floral business experiences a downturn and cannot repay the advance, the funder can ask the court for a judgment and begin seizing your business assets. If there was a personal guarantee attached to your MCA agreement, the funder can also levy your assets, such as your house, car, and bank accounts. With so much at stake, having merchant cash advance assistance is crucial. 

How Our Merchant Cash Advance Specialists Can Help

At, we know the ins and outs of merchant cash advances. A properly structured MCA agreement will include a reconciliation clause requiring the funder to restructure the payment plan if your floral business experiences a receivables shortfall. This clause means that an MCA is not a demand for payment and is not regulated like a consumer loan, leaving you with little protection if you default. That’s where we can help.

Our debt relief specialists can help to reconcile your merchant cash advance. But you must first notify the MCA provider of a receivables shortfall and demonstrate that your floral business can return to profitability. We can help compile all the necessary financial information and renegotiate the payment plan with your MCA provider. A funder that refuses to reconcile a merchant cash advance may be in breach of contract, and we will explore potential legal remedies if necessary. 

Contact Today

If your floral business is at risk of defaulting on a merchant cash advance, you may be forced into business bankruptcy. Don’t delay. Time is of the essence. This is the time to contact We are well-known as dedicated advocates of small businesses and will work to protect your interests. Complete the convenient intake form to get started. Our debt relief specialists are available 24/7.