Are Merchant Cash Advances Legal?
Quick Summary: Yes, merchant cash advances are legal. However, because MCAs are structured as purchases of future receivables rather than loans, they aren’t subject to state usury laws or the same consumer protections that apply to traditional business funding. This lack of regulation allows for high fees, aggressive collection tactics, and contract terms like confessions […]
What Is MCA Reverse Consolidation?
Quick Summary: MCA reverse consolidation doesn’t pay off your merchant cash advance debt. It adds more debt on top of it. A reverse consolidation lender funds your existing MCA payments weekly while you repay them at a lower amount over a longer term. While this reduces immediate cash flow pressure, you’ll owe more total and […]
What to Do When an MCA Lender Files a UCC Lien Against You
Quick Summary: A UCC lien is a financing statement MCA lenders file to claim your business assets as collateral. While standard for business financing, a blanket UCC lien can block future credit and allow lenders to contact your customers directly if you default. To remove a UCC lien, you must pay off the debt or […]
