This article describes the hard facts about MCAs and what to do if you’re buried underneath them.
1 Your merchant cash advance (MCA) ISN’T a loan. And your lender isn’t a bank.
MCA loans are predatory. They are systematically designed to parasite off your business until it dies. So, while they may claim to offer the solution, we believe they are the real problem.
- These products are specifically designed to bleed small businesses dry and force them to sign up again and again. Stacking loans on top of loans, on the inevitable decent into failure.
- These products are not designed to help your business. They are designed to strangle cash flow, to disrupt and destabilize while they collect profits from thousands of other struggling businesses like yours.
- MCA “lending” isn’t a solution to your cash flow problem. Quite the opposite, your MCA loan may actually be your cash flow problem
2 How your MCA lender will attack your operating accounts – and how to stop them.
You’ve given them permission to draw from your operating account at will. They will not be sensitive to your business’ needs as they take freely and bleed your accounts dry
- Think it’s as simple as blocking the withdrawal? Think again. MCA’s are aggressive and unscrupulous and will even try to freeze or empty your entire account when they deem it justified.
- They will attack your relationships with your customers, demanding any funds they would normally direct to you and your business.
3 You have likely signed a COJ (confession of judgment), so here’s what you must know:
- A COJ is a fast track that allows your predatory creditor to empty your account within 48 hours of any perceived default
- You’ve given them a legal path to seizing and liquidating business and personal assets.
4 How your MCA lender will attack your customers.
- A Uniform Commercial Code Article 9, section 406 letter can be used by your creditor to stake a claim on your accounts receivable, and intercept the funds before your customer submits payment to you
- This is not the practice of a creditor that wants your business to survive. This is the practice of a pirate and a thief who only wants to gain as much as they can from the businesses they rob until it dies.
5 Why ‘consolidation’ won’t save you or your business – and what can.
- Consolidation services are bloated with hidden fees and small print. They are often just another level down the waterfall of predatory lending. At best they will only prolong the slow death of your business.
- Because lending requirements which are often 2x the amount needed, an already leveraged business usually won’t qualify. This non-starter can mean a costly waste of time.
- The cash flow you need to survive may ALREADY BE IN YOUR BUSINESS RIGHT NOW. It’s just being stolen from you on a daily, weekly, or monthly basis by creditors operating outside of regulations and protocols. It’s time to stop the theft.
6 Why bankruptcy isn’t the answer: There’s a better way.
In bankruptcy, there’s one thing that’s certain. You will lose the business you’ve built. But you don’t have to. We, unlike anyone else, have 40 years of proven strategies that eliminate debt without bankruptcy.
- In bankruptcy, you will lose most of your personal assets. There’s far more risk than you realize! And even after destroying your business, you still won’t be as protected as you think.
- Your credit will be destroyed. This will impact every aspect of your life. Every aspect of life requires credit. Including the ability to start over. Don’t declare bankruptcy and tear your life apart. You don’t have to.
- A lien on your home. Bankruptcy will turn you into a renter. (your mortgage payments will be servicing the bankruptcy, not building equity.)
- You won’t be able to borrow for 7 years. That’s not a fresh start. But you can have one NOW.
ASK US HOW to eliminate debt without bankruptcy.