Can You File Bankruptcy on a Merchant Cash Advance?
Quick Answer Can bankruptcy eliminate MCA debt? Yes, but it depends on the type. Chapter 7 liquidates assets to pay debts. Chapter 11 allows restructuring — including MCA obligations —…
Category: Merchant Cash Advance
Merchant Cash Advance articles, guides, and legal information.
How Does a Merchant Cash Advance Impact Your Credit Score?
Quick Answer Do MCAs affect your credit score? MCAs are not reported to consumer credit bureaus directly. However, defaulting can lead to judgments, collections, and UCC liens that do appear…
Dealing With MCA Legal Issues: What to Do
Quick Answer What should I do about MCA legal problems? Do not ignore legal notices. If you have received a demand letter, confession of judgment, or lawsuit, you have a…
I’m Facing a Merchant Cash Advance Lawsuit in New York. Now What?
Quick Answer What do I do about an MCA lawsuit in New York? Respond immediately. New York is the #1 jurisdiction for MCA litigation. You typically have 20–30 days to…
How to Negotiate with a Merchant Cash Advance Lender
Quick Answer How do you negotiate MCA debt? Leverage is everything. Funders settle at 30–60 cents on the dollar when they believe litigation will cost more than settlement. Key leverage…
Merchant Cash Advance Interest Rates: How They Work
Quick Answer How do MCA interest rates work? MCAs technically do not have interest rates — they use factor rates. But the effective cost is the same. A factor rate…
How Do I Stop Paying an MCA?
Quick Answer Can I stop making MCA payments? You can revoke ACH authorization through your bank, but this constitutes default and triggers UCC enforcement, potential COJ filings, and lawsuits. The…
MCA Stacking Explained: How It Impacts Your Business
Quick Answer What is MCA stacking? MCA stacking means having multiple merchant cash advances at the same time. It is the #1 cause of MCA-related business failure. Multiple daily ACH…
Merchant Cash Advance Disputes: Arbitration vs Lawsuit Explained
Quick Answer Should I go to arbitration or court for an MCA dispute? It depends on your contract. Many MCA agreements include mandatory arbitration clauses that prevent you from going…
Can an MCA Freeze Your Bank Account? When & Why It Happens
Quick Answer Can an MCA company freeze my bank account? Yes — if your contract includes a confession of judgment clause, the funder can obtain a judgment and direct the…