Frequently asked questions

We build a complete schedule of your obligations, model the payment your business can sustain from its own cash flow, and then negotiate revised balances and terms with each creditor. The result is a documented plan with a defined end date instead of a set of competing withdrawals.

It can, and the degree depends on the type of obligation and how far behind it is. We walk through the likely credit implications of each option during the assessment so the decision is made with that information in front of you rather than discovered later.

The relief owners notice first is usually the shift in creditor contact and withdrawal pressure. Negotiated terms on the first positions commonly land within the initial 30 to 60 days, while a full plan runs over a longer period depending on the size of the obligations.

No. The consultation is free and there is no application fee. Our fee structure is presented in writing before you enroll, and we would rather lose the engagement than have a client sign something they have not fully read.

Personal guarantees are treated as part of the exposure, not an afterthought. Where a guarantee is in play we negotiate release language explicitly as part of the settlement rather than leaving it unresolved.

No. Restructuring is a negotiated, private process between you and your creditors. Bankruptcy is a court proceeding with a public record. For some businesses bankruptcy is genuinely the better route, and when that is the case we will say so.

Yes, in most states. An MCA is written as the purchase of a portion of your future revenue rather than a loan, so it sits outside much of the lending rulebook. A number of states have added disclosure and conduct rules in recent years, and courts have pushed back on funders whose contracts or collection tactics crossed the line. Read the agreement and the state rules that apply to you before signing.

Usury caps limit the interest a lender may charge on a loan. Because an MCA is structured as a discounted purchase of future receivables, the funder's position is that no money was lent and no interest was charged, which places the agreement outside those caps. Courts have recharacterized some advances as disguised loans where repayment was fixed and unconditional, but that is decided case by case.

Generally no. Banks work within lending regulation and offer term loans, lines of credit and SBA products. Advances come from alternative funders, fintech lenders and private capital, who underwrite on deposit volume rather than credit score. Some banks refer declined applicants to those funders, which is often how an owner ends up with an advance without ever seeking one out.

A loan has a principal balance, a stated rate and a fixed schedule. An advance has a factor rate and a fixed total payback collected through daily or weekly withdrawals tied to your deposits. Repaying an advance early does not reduce the amount owed, and the effective annualized cost is usually far above any bank product.

The market is led by a group of well-capitalized national funders alongside dozens of smaller shops and brokers. We maintain a working list of the companies we deal with most often on our List of MCA Funders page, and our familiarity with each funder's posture shapes how we approach a negotiation.

Expect the pace to change quickly: demand for the full balance, contact with your customers or processor, UCC notices, and in many cases a lawsuit. Most agreements carry a personal guarantee, so the exposure follows the owner as well as the business. Acting before the default hardens almost always produces a better outcome than reacting after a judgment.

Missed withdrawals usually trigger default fees, escalating collection contact and attempts to pull funds directly from your account. Where a guarantee exists, the funder can pursue the owner personally. Stopping payment without a negotiated position in place raises the pressure rather than relieving it, which is why we set the strategy first.

Fewer than most owners expect, because the agreement is not treated as a loan. What remains are contract defenses, state disclosure rules, limits several states now place on confessions of judgment, and arguments that a particular advance functioned as a loan. Keeping every contract, statement and written exchange is what makes those arguments usable.

There is no way to simply walk away from a signed agreement, but the amount and the schedule are both negotiable. The realistic routes are a reduced settlement, restructured terms, a reconciliation of the withdrawal against actual revenue, or a challenge to the contract itself. Which route fits depends on your cash flow, the funder and the paperwork.

It is the share of daily card or deposit revenue the funder takes until the fixed payback is satisfied. In principle it rises and falls with sales; in practice many agreements collect a flat daily or weekly amount and place the burden on you to request a reconciliation. That gap between the stated percentage and the actual withdrawal is where most cash flow damage occurs.

Respond promptly. Ignoring a complaint invites a default judgment, which opens the door to frozen accounts and liens. Send us the filing and the underlying agreement and we will assess the position with counsel, including whether a confession of judgment or restrictive venue clause is in play, and whether settlement is the faster path.

We negotiate with the great majority of active funders in the market, from the national names to smaller regional shops. That volume tells us how each one tends to value a file and where it will move, which is what allows us to present a proposal that gets taken seriously. The current list is published on our List of MCA Funders page.