Merchant Cash Advance articles, guides, and legal information.
Quick Answer How should I prioritize payments when I have MCA debt? Priority order: 1) Payroll (legal obligation), 2) Rent/lease (keeps business operating), 3) Essential vendors, 4) Tax obligations (IRS…
Quick Answer What is MCA reverse consolidation? Reverse consolidation is a new MCA product that claims to combine multiple MCA balances into one payment. In practice, it often adds another…
Quick Answer What should I do about a UCC lien from my MCA funder? A UCC lien filed at MCA signing is standard procedure — not an emergency. It becomes…
Quick Answer Are MCAs legal? Yes, MCAs are legal in all 50 states. They operate in a regulatory gap — classified as commercial transactions rather than loans. However, specific MCA…
Quick Answer Should I use AI for my MCA legal case? No. AI tools can help you understand concepts, but they cannot file court documents, appear at hearings, negotiate with…
Quick Answer Do UCC liens prevent me from getting a business loan? Yes — in most cases. Banks and SBA lenders check UCC filings during underwriting. An active UCC-1 from…
Quick Answer How can I tell if an MCA consolidation company is a scam? Red flags: upfront fees before any work, “guaranteed” settlement percentages, no attorney on staff, pressure to…
Quick Answer What MCA protections does California law provide? California requires MCA funders to disclose total cost, estimated APR, and payment amounts (SB 1235). The DFPI enforces these rules. If…
Quick Answer What do I do when MCA payments threaten payroll? This is a crisis. Payroll obligations have legal penalties — MCA obligations do not. Immediate steps: contact an MCA…
Quick Answer What is the difference between a UCC lien and a judgment lien? A UCC lien is a voluntary security interest you granted at signing — it covers business…