Can You File Bankruptcy on a Merchant Cash Advance?
Quick Answer Can bankruptcy eliminate MCA debt? Yes, but it depends on the type. Chapter 7 liquidates assets to pay debts. Chapter 11 allows restructuring — including MCA obligations —…
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Can You Write Off a Merchant Cash Advance on Taxes?
Quick Answer Can you deduct MCA fees on your taxes? The fee portion of an MCA (total repayment minus the advance amount) may be deductible as a business expense. The…
What is a Merchant Cash Advance Factor Rate, and How Does It Affect Repayment?
Quick Answer What is an MCA factor rate? A factor rate is a multiplier (typically 1.1–1.5) applied to your advance amount to determine total repayment. A factor rate of 1.35…
Are Merchant Cash Advances Regulated?
Quick Answer Are merchant cash advances regulated by federal or state law? Minimally. MCAs are classified as commercial transactions, not loans, so they escape banking regulations, usury caps, and Truth…
Merchant Cash Advance FAQ: What You Need to Know
Quick Answer What do business owners need to know about merchant cash advances? MCAs are not loans — they are purchases of future receivables. Factor rates of 1.2–1.5 translate to…
Merchant Cash Advance Pros and Cons
Quick Answer What are the pros and cons of a merchant cash advance? Pros: Fast funding (24–48 hours), no collateral required, flexible repayment tied to revenue. Cons: Extremely high effective…