Merchant Cash Advance Debt Relief

man using a calculator to count money

Businesses that are carrying bank loans, lines of credit, and other traditional sources of funding have several opportunities to restructure their debt. But there may be fewer options for those that have taken a merchant cash advance (MCA). By working with an experienced debt relief specialist, there are ways to find merchant cash advance debt relief.

At ReconcileMyMCA, we provide merchant cash advance assistance to small businesses around the country. If your business has experienced a downturn and is struggling under the terms of a merchant cash advance agreement, we can help. 

When you meet with us, we will review your finances and explore all your options. Given that defaulting on a merchant cash advance could put you out of business, you need to have dependable advice and guidance. Contact us today by completing the convenient intake form. 

Options for Merchant Cash Advance Debt Relief

By this time, you already know that MCA providers take a significant percentage of your daily sales to recoup the cash that was advanced to your business. What happens if your business experiences a receivables shortfall? What if you default on repaying the merchant cash advance?

If you read the fine print of the MCA agreement, you may notice things like a confession of judgment and a personal guarantee. These provisions give the funder the power to seize both your business and personal assets if you default. Our debt relief specialists are here to help you explore all your options for MCA debt relief. These include:

Applying for a Term Loan

Taking out a term loan will allow you to refinance your merchant cash advance debt. Term loans offer more favorable terms than merchant cash advances, such as lower interest rates and longer repayment periods. You will also have one monthly payment rather than daily withdrawals from your credit card sales that could take a bite out of your cash flow. 

While a term loan can help you better manage your cash flow, some lenders restrict how the funds can be used – merchant cash advance debt may not qualify under certain loan programs. And you also need to meet the lender’s credit criteria, which are likely to be more strict than the criteria for an MCA.

Taking Out an Asset-Backed Loan

As the name implies, an asset-backed loan is collateralized by your business’s assets, such as property, equipment, and inventory, and may also require a personal guarantee. The main benefit of an asset-backed loan is that you can refinance your merchant cash advance debt at a lower interest rate with a longer repayment term. But if you can’t repay the loan, the lender will seize the business assets you put up as collateral. 

Considering a Debt Consolidation Loan

It is uncommon for businesses to take multiple cash advances. If this is your situation, your business and personal assets are in serious jeopardy because the MCA agreements may contain cross-default provisions. This means that defaulting on one merchant cash advance may trigger a default on the others. 

If you are carrying multiple cash advances, one option is a debt consolidation loan. Instead of repaying different funders with multiple withdrawals from your daily credit card sales, you will have one loan with a lower monthly payment and interest rate. The challenge is finding a lender with expertise in the MCA sector that offers suitable loan products. 

Reconciling Your Merchant Cash Advance

Your best option for merchant cash advance debt relief is to reconcile your MCA. A well-designed merchant cash advance agreement will include a reconciliation clause that requires the MCA provider to restructure the repayment plan by reducing the daily withdrawals until your receivables meet the original projected target. However, you must notify the funder of the receivables shortfall and demonstrate that your business will return to profitability. 

How We Can Help

If you need merchant cash advance assistance, our debt relief specialists can help you reconcile your MCA. When you meet with us, we will:

  • Evaluate your financial position
  • Review the terms of your MCA agreement
  • Help you document the receivables shortfall
  • Produce evidence showing how your business will return to profitability
  • Negotiate a new repayment plan with the MCA provider

If the funder refuses to reconcile your merchant cash advance, they may be held in breach of contract. Trust our team to achieve the best possible outcome and keep your business a going concern. 

Contact Today

If your business is at risk of defaulting on an MCA agreement, we can help you obtain merchant cash advance debt relief. We know the ins and outs of merchant cash advances and how to deal with all the players in the industry. The sooner you contact our office, the sooner we can help you reconcile your merchant cash advance. Complete the convenient intake form now. Our debt relief specialists are available 24/7.