Strategies for settling MCA debt, negotiating with funders, restructuring payments, and getting out of merchant cash advance obligations.
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 Can I consolidate multiple MCAs into one payment? True consolidation means replacing multiple MCAs with a single, lower-cost product — a term loan, SBA loan, or line of…
Quick Answer What should I do if my MCA goes to collections? Do not ignore collection calls. MCA collection agencies are typically more aggressive than consumer collectors. Document all communications,…
Quick Answer How do I request lower MCA payments? Send a formal reconciliation request to your funder citing the reconciliation clause in your agreement. Include bank statements showing reduced revenue.…
Quick Answer What is the best way to get out of MCA debt? The best exit depends on your situation: settlement (30–60 cents on dollar), reconciliation (reduced payments), refinancing (replace…
Quick Answer Can I refinance my MCA? Refinancing means replacing an MCA with cheaper financing — a bank loan, SBA product, or line of credit. This is possible if you…
Quick Answer How do you restructure MCA debt? MCA restructuring involves negotiating modified payment terms — reduced daily amounts, extended timelines, or lump-sum settlement. Options: direct negotiation with funder, reconciliation…
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 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 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…