What Is a Merchant Cash Advance?
A merchant cash advance (MCA) is a business financing option where you typically get a lump sum of money in exchange for a percentage of your future debit or credit card sales or income.
Most businesses choose a merchant cash advance when they need quick capital or cash. They’re relatively easy to get, but they also charge very high interest rates, which can make them challenging to repay.
The repayment can be required to be made daily or weekly from your bank account as a debit. But these payments can take away much needed cash flow from your business and ultimately your pocket.
If you default on a merchant cash advance loan, it can be especially detrimental to your business and could result in lawsuits, judgments, and liens from the lender as well as negative credit reporting. It could put you out of business.
Depending on where you are in the process, you could be required to sign (or have already signed) a confession of judgment, leaving you with limited legal recourse and jeopardizing your personal assets as well as that of your business.
Is a Business Loan or Merchant Cash Advance a Snake in the Grass or Business Savior?
As a business owner, you want what’s best for your company. Feelings of desperation for quick cash can make it easy to be manipulated by the lure of merchant cash advances or other business loans. This is especially true if you’re waiting for income from one or more sources that simply hasn’t come in yet.
When you are having trouble with business finances, limited resources, and credit, you may feel as though a merchant cash advance or other business loan may be your only option to cover your business expenses.
You may think that you can then pay off the loan with the next job, sale, or receivable that comes in, but this is not always a reliable or a realistic solution. Too often this thinking ends up making things worse for your business, with frozen business accounts, liens, lawsuits, and judgments.
Merchant cash advances can restrict a business’ cash flow, giving you no choice but to go into default and ultimately fail without the operating capital you need and depend on.
How Tayne Law Group Can Help With Your Merchant Cash Advance Debt
Tayne Law Group is a debt resolution law firm with offices in your community and years of experience helping to strategize, implement and resolve business debts for all size businesses.
Concentrating on resolving business loans, business debt and merchant advance loans since 2001, we know debt and can offer the best strategies to resolve your business loan debt to keep you afloat, out of bankruptcy and your cash flow positive.
We know time is limited as a business owner and that you’re feeling the pressure of diminishing cash flow to keep up with the business’s bills. If you’ve tried other options with no success, consider reaching out to Tayne Law Group for help. We can work with you to keep your business running, increase cash flow and get your business debts and merchant cash advances resolved so you can focus on making money and growing your business again.
Our process is straightforward, and it costs nothing to find out more. We start with a free, no-obligation phone consultation, where you can speak with an experienced staff member from the firm who will discuss your situation to customize solutions and strategies from our attorneys for your particular circumstances.
As an experienced, award-winning and trustworthy financial and business debt resolution law firm, we work regularly with business clients who have fallen into debt, are struggling to pay bills and simply have lost income as a result of changes in their business. Our firm only concentrates in the area of debt solutions, so you are at peace knowing you went to the best of the best.
Let us help get you back on track with proven strategies and options to resolve the debt, increase cash flow, and take the pressure off with a comprehensive plan for your business to get out of this mess.
Call our firm at 866.890.7337 to set up your consultation.
Examples of Business Lenders We Work with to Settle Business Debt