MCA Default: Should I get into a Payment Plan post-default?

With the dramatic surge in calls received related to troubled Merchant Cash Advance loans, it’s time to set the record straight on an issue that we frequently run into. We have written about this many times recently. Be sure to also read this article on the topic. 

Upon defaulting on your daily payments owed to MCA creditors, you will most certainly encounter the aggressive, harassing collection techniques employed by the industry. Rude text messages sent to ...

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How to Protect yourself during a Merchant Cash Advance Loan Default

Recently Second Wind Consultants has seen a large influx of business owners overburdened with merchant cash advance loans and other forms of high interest short term financing. Instead of one large monthly payment, these multiple, often daily, payments are strangling cash flow of an otherwise “stable” business. We have wrote other articles on the topic that have received much praise, hopefully this one helps you out too.

The most common profile is a small business that has obtained one ...

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How to Successfully Negotiate with the US Treasury Department

Federally backed loans in serious delinquency, past the point of collection by the primary lender, often end up at the US Treasury Department. This can include student loans, Federally backed agricultural loans, and as we often see, SBA backed loans.

If you are reading this article, chances are you once took on an SBA backed loan for your business and things have not worked out as planned. The business is closed and you were unsuccessful in settling your debt. Now you ...

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My Business Partner Filed Bankruptcy – What happens to our joint debts?

When creating a business with a partner, few entrepreneurs truly understand how that act intertwines the financial positions of the partners, especially when debt is involved. No one ever thinks about this when business is going well or at the formation of the partnership, but what happens if your business is performing poorly or your business partner files bankruptcy? Where does this leave you?

Many owners create their company, establish partnerships, go to a bank for a loan, and enter into ...

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What can you do to improve your credit score? Easy steps to rebuild your credit fast.

Many of our clients come to us with very poor credit scores. This is a symptom of the small business owner leveraging everything they can in order to keep the operation running, including their personal credit.

While it is important to note that in the vast majority of SBA workouts, personal credit is not impacted, our clients are typically dealing with a variety of personally guaranteed debts all at once, like business & personal credit cards, commercial lines of credit, ...

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Defaulting on a Merchant Cash Advance Loan?

In the years leading up to the 2008 financial crisis, small business owners had a consistent source of short term capital, their home equity. Rapidly rising house prices allowed them to borrow against their homes and put the money into their company to buy more inventory, fulfill a purchase order, hire more employees etc.

Then things changed. The 2008 financial crisis crippled home equity nationwide and tightened lending standards. Business owners in desperate need of short term capital were flocking to ...

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How do I Settle my Debt with the US Treasury Department?

In the world of SBA collection, there exists a name that inspires fear in debtors far and wide.  If a lender is having trouble collecting, they tell a debtor they will send the matter off for collection in the “Treasury,” using the name like some taboo character parents use to scare children in behaving properly.

SBA backed debts are guaranteed by the federal government in the event of default and, like all federally supported obligations, defaulted files that do not reach a ...

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Cannot Make SBA Loan Payment. What Happens if I Default on My SBA Loan?

An SBA loan is a loan to a small business that otherwise would not qualify for a loan through normal business lenders. The small business receives the funds because the lender’s risk is mitigated by the Small Business Administration’s guarantee. If your loan goes into default, the government will cover the losses of the lender up to 90%. A great program to get our economy stimulated and likely responsible for the creation of millions of jobs.

But there is another side ...

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Can a Creditor Take My Retirement Money?

When faced with reduced revenues, increased overhead, and other market forces that put pressure on the cash flow of small businesses, many owners liquidate their personal assets and invest them into their business.  They liquidate stock accounts, cash savings, sell other assets in order to raise cash, and even forego a paycheck. It is their passion and their determination that leads them to believe that they will be returned that money and more once they turnaround their business and improve ...

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