What Tariffs Mean for Merchant Cash Advance Borrowers
Quick Answer How do tariffs affect businesses with MCAs? Tariffs increase the cost of imported goods, squeezing margins for businesses with fixed MCA payments. If tariffs reduce your revenue or…
Category: Merchant Cash Advance
Merchant Cash Advance articles, guides, and legal information.
Are Merchant Cash Advances a Scam?
Quick Answer Are MCAs a scam? MCAs are legal financial products, not inherently scams. However, the industry has predatory actors — brokers who misrepresent terms, funders who ignore reconciliation rights,…
How Do I Stop Merchant Cash Advance Withdrawals Without Defaulting?
Quick Answer How do I stop MCA withdrawals without defaulting? The only way to stop withdrawals without defaulting is to negotiate a modification — reduced payments, payment holiday, or settlement.…
What Is a Merchant Cash Advance? How MCAs Work and What They Really Cost
Quick Answer What is a merchant cash advance and what does it cost? An MCA is a purchase of future receivables — not a loan. A funder advances $X and…
Can You Sell Your Business If You Have a Merchant Cash Advance?
Quick Answer Can I sell my business if I have an MCA? Technically yes, but the UCC lien complicates the sale. Buyers will discover the lien during due diligence. You…
Merchant Cash Advances: How Many Is Too Many?
Quick Answer How many MCAs is too many? More than one is a warning sign. Three or more is a crisis. Each additional MCA compounds daily payment obligations. By the…
How to Use a Merchant Cash Advance Responsibly
Quick Answer Can you use an MCA responsibly? Yes, but it requires discipline: only take an MCA for revenue-generating opportunities, never use it to cover operating shortfalls, calculate the true…
Merchant Cash Advance vs Bank Loan: Which Is Right for Your Business?
Quick Answer Should I get an MCA or a bank loan? A bank loan is almost always cheaper. SBA loans: 6–13% APR. Bank lines of credit: 7–15% APR. MCAs: 40–350%…
Is a Merchant Cash Advance a Loan? Differences, Costs & Risks
Quick Answer Is an MCA legally a loan? Legally, no — MCAs are classified as commercial purchase agreements. Practically, many MCAs function exactly like high-interest loans with fixed daily payments.…
How a UCC Attorney Can Help Your Business Resolve UCC Lien Issues
Quick Answer When do I need a UCC attorney? A UCC attorney can: negotiate lien releases as part of settlement, file UCC-3 termination statements, challenge improperly filed liens, advise on…