Merchant Cash Advance articles, guides, and legal information.
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 should I look for in an MCA contract? Critical terms to review: factor rate, total purchased amount, daily payment amount, reconciliation clause, confession of judgment clause, personal…
Quick Answer What are alternatives to merchant cash advances? Better options: SBA loans (6–13% APR), business lines of credit (7–15%), invoice factoring (1–5% per invoice), equipment financing (6–16%), business credit…
Quick Answer Am I still liable for an MCA if my business closes? It depends on your personal guarantee. If you signed one (most MCAs require it), you are personally…
Quick Answer What fees are involved in an MCA? The primary fee is the factor rate premium — the difference between the advance and the purchased amount. Additional fees may…
Quick Answer What is a confession of judgment in an MCA? A confession of judgment (COJ) is a pre-signed legal document that allows the MCA funder to obtain a court…
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 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 How are MCA payments structured? Most MCAs use fixed daily ACH withdrawals from your business bank account (Monday–Friday). Some use weekly withdrawals. The amount is calculated by dividing…
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.…