MCA Defense Group FAQ's

The MCA loan application process will require a business operator to provide merchant payment processing statements and bank statements to determine how much of an advance can be funded. A credit check may also be required in order to qualify in some instances.

The lender will provide the terms and conditions of the advance. The funds are then deposited into the business owner’s bank account for their use. The payments are scheduled to be paid back on a daily/weekly schedule.Repayment begins immediately.

If this truly were an advance against future receivables, the repayments would reflect the present revenue of the business.  This is not how the system works.  MCA Lenders have a fixed amount

that they continue to draw from the business bank accounts whether revenue has changed or not.

Business owners may find these loans unaffordable. MCA lenders are quick to bring lawsuits against borrowers who default on payments. It is important to seek the proper guidance if you have defaulted or may soon default on your loan against receivables.

The MCA loan application process will require a business operator to provide merchant payment processing statements and bank statements to determine how much of an advance can be funded. A credit check may also be required in order to qualify in some instances.

The lender will provide the terms and conditions of the advance. The funds are then deposited into the business owner’s bank account for their use. The payments are scheduled to be paid back on a daily/weekly schedule. Repayment begins immediately.

If this truly were an advance against future receivables, the repayments would reflect the present revenue of the business.  This is not how the system works.  MCA Lenders have a fixed amount

that they continue to draw from the business bank accounts whether revenue has changed or not.

Business owners may find these loans unaffordable. MCA lenders are quick to bring lawsuits against borrowers who default on payments.It is important to seek the proper guidance if you have defaulted or may soon default on your loan against receivables.

A merchant cash advance (MCA) is not a loan, it is a cash advance based upon the future receivables a business is scheduled to collect.

This type of agreement eliminates the need for collateral that would normally be required for a traditional commercial loan. The amount to be repaid is calculated by a “factor rate”which is based on the business’s financial status, cash flow and revenue.

Yes. A Merchant Cash Advance could be extremely detrimental to the business and most likely result in:

• Lawsuits being filed by the lender,
• Judgments (if not properly defended in a court of law)
• UCC liens are secured and filed by the lender.
• A loss of customers
• Freezing of bank and electronic payment processing accounts

MCA Defense Group can help make arrangements with creditor(s) to ensure that you can continue operating.

There is little to no regulationin the merchant cash advance industry.  MCAs are not considereda loan. There is no federal oversight and they do not fall under any state Usury laws.

If these were categorized as a loan with their annual percentage rates and fees, they would be predatory and usurious. 

Our team at MCA Defense Group has the experience needed to navigate you through this process resulting in favorable outcomes for our clients. 

Once you have a merchant cash advance, many other MCA lenders and brokers will call to offer additional advances on top of your existing advance.  This process is known as “stacking”.  This leads to additional debt, much higher fees, and worsening your financial position.  It is not uncommon for many of our clients to have multiple MCA loans.  If you are struggling to pay or are in default on one or more MCA loans, our team has a comprehensive legal strategy to lessen your financial burden. 

A “confession of judgment” takes away your right to defend yourself before a judge if you default or stop paying your merchant cash advance. You may have been required to sign a “Confession of Judgement” document when executing your MCA contract. If you have or are being asked to sign a confession of judgment, it would be in your best interest to consult professionals.  MCA Defense Group can give you the best advice to defend your rights and put you in a better financial position.

Reduce and restructure your payments

Insulate you from liability

• Defend against default lawsuits and collection attempts.
• Avoid potential judgments or satisfy existing judgments.
• Provide you and your business with the time needed to find financial relief.
• Provide solutions to avoid debt collection and maintain cash flow.

• A UCC filing or lien is used by lenders and MCA companies to enforce their rights to collateral, liens, or a secured interest. MCA companies will secure your receivables as a form of collateral using the Right Universal Commercial Code

  If you are in danger of defaulting or in default on your Merchant Cash Advance.

  • Understand what a UCC lien is
  • Review the UCC section on your Merchant Cash Advance Agreement
  • Search for your UCC Lien on your state’s secretary of state website
  • MCA Defense Group has the team and expertise to guide you regarding your rights and remedies regarding UCC Liens