Merchant Cash Advance articles, guides, and legal information.
Quick Answer How does MCA debt settlement work? MCA settlement involves negotiating a lump-sum payoff below the outstanding balance — typically 30–60 cents on the dollar with proper legal leverage.…
Quick Answer When should you hire an MCA attorney? Hire an MCA attorney if: you have $50K+ in MCA debt, you have been served with a lawsuit or COJ, your…
Quick Answer What should I watch out for with MCA settlement companies? Red flags: upfront fees, no attorney involvement, guaranteed settlement percentages, aggressive sales tactics, no plan for litigation, and…
Quick Answer Do UCC filings affect personal credit? UCC liens are filed against your business, not you personally — so they do not appear on personal credit reports (Equifax, Experian,…
Quick Answer What should I do if an MCA broker scammed me? Document everything, report to your state AG and the FTC, consult an attorney about fraud and misrepresentation claims,…
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…
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…
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…
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…
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…