"Just because a business is profitable doesn’t mean it’s got sufficient cash flow to sustain itself."
Profit and cash flow are both important elements of measurement in a business, but they are not the same thing.
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Profit is defined as revenue less expenses. It may also be referred to as net income.
Cash flow refers to the inflows and outflows of cash for a particular business.
Positive cash flow occurs when there’s more money coming in at any given time, while negative cash flow means there’s more money out.
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Cash flow problems happen when a business does not have enough liquid cash to cover its liabilities. When cash outflows exceed cash inflows, businesses may struggle to pay debts and other expenses.
Net cash outflows don’t necessarily indicate that a business has a cash flow problem. It’s common for businesses to experience a net cash outflow when making large payments or experiencing seasonal business fluctuations. Cash flow only becomes a problem when outflows exceed inflows. At that point, the business uses up its cash reserve and can no longer meet its liabilities.
Cash flow issues can arise from holding too much business debt, low-profit margins, problems invoicing and collecting payments, and over-investing in inventory or capacity.
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When cash is short, it can impact businesses in several ways. Cash flow shortages can result in:
Late payments to suppliers, leading to strained relationships.
Late or missed debt repayments, resulting in decreased credit ratings.
Additional debt to cover business expenses.
Missed opportunities to grow the business through investments.
Negative impacts on marketing strategies and competitive advantages.
Covering business expenses with personal funds.
Reduced employee morale and unpaid wages.
Reduced customer satisfaction.
Business closures due to insolvency.
Understanding how and why cash flow issues commonly occur can help you address them before they affect your business.
How do I get out of Merchant Cash Advances?
If you’re wondering if you can get out of a Merchant Cash Advance (MCA) contract (receivables purchase or loan agreement), the simple answer is…”YES”
Options and Solutions: Merchant Cash Advance (MCA) refinancing or restructuring
Save your business by taking action now! Make you business debt more manageable. Stop collection activity by Merchant Cash Advance companies under UCC lien (Uniform Commercial Code, Article 9) and through Merchant Cash Advance companies filing civil law suits. You have options to help your business avoid bankruptcy and/or business closure (liquidation).
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Kanjorski Partners LLC can help you with one or all of the following—
* Considering Merchant Cash Advance (MCA) financing?
* What are alternatives to Merchant Cash Advance (MCA) financing?
* Refinancing of Merchant Cash Advance (MCA)?
* Struggling to make Merchant Cash Advance (MCA) payments?
* Nearing default on Merchant Cash Advance (MCA) agreements?
* Stopped paying (defaulted) on one or more Merchant Cash Advances (MCAs)?
* Restructuring of Merchant Cash Advance (MCA) agreements?
* Want to stop aggressive Merchant Cash Advance (MCA) collection activity?
*Reconciliation of Merchant Cash Advances (MCAs)
*Took too many Merchant Cash Advances (MCAs)?
*How do I lower my daily and/or weekly Merchant Cash Advance (MCA) payments?
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Non-payment of a Merchant Cash Advance could lead to breach of contract of the Merchant Cash Advance agreement and a potential lawsuit.
There are many instances of Merchant Cash Advance contract breach (“default”) like taking additional MCA advances, multiple NSFs, stopping payments, changing bank accounts and many other instances where default can occur.
Just remember, the Merchant Cash Advance company just wants to get paid.
Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program. -
Ways To Stop Paying Merchant Cash Advance:
1) REFINANCE: Refinance and payoff your Merchant Cash Advance with a new loan
2) RESTRUCTURE: Re-negotiate your Merchant Cash Advance agreement(s) to longer terms with lower payments that your business can manage and afford to pay (bi-weekly or monthly)
3) FILE BANKRUPTCY: Corporate reorganization or liquidation and/or personal bankruptcy
4) UCC ARTICLE 9 SALE: Restructure your business through an UCC Article 9 asset sale
Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program. -
Defaulting on a Merchant Cash Advance can potentially drain your bank account, trigger aggressive collection activity and legal action.
Try to Restructure the debt in our Merchant Cash Advance Restructuring program if you cannot continue to afford your payments.
Merchant Cash Advance (MCA) default can lead to bank overdraft fees, harassing collections activity, potential damage to your business and personal credit score, court filings, and Uniform Commercial Code (UCC) Article 9 collections activity.
Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program. -
If you answer YES to any of these questions below, we can help!
Do you currently have more than one Merchant Cash Advance (MCA)?
Do the Merchant Cash Advance (MCA) companies get paid before you do?
Do you have negative balances or frequent Not Sufficient Funds (NSFs) in your business account?
Have you seen a decrease in your gross sales deposits or income since taking out your Merchant Cash Advance (MCA)?
Have you taken out more than one Merchant Cash Advance (MCA) in the last year?
Are you late on your payroll, rent, or any other essential bills?
Do you have maxed out business or personal credit cards?
Do you see yourself needing another Merchant Cash Advance after this one to keep paying the existing ones?
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A merchant cash advance (MCA) is an extremely high-cost business financing option where you typically get a discounted lump sum of money in exchange for a percentage of your future accounts receivable or sales deposits.
Essentially, your business sells its future sales deposits at a discount to the Merchant Cash Advance (MCA) company through a Receivables Purchase Agreement.
Most small business owners take out a Merchant Cash Advance to grow or expand their business, but more often than not, it can hold back, hurt and destroy your business.Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program. -
Merchant Cash Advances (MCAs) are a trap for small businesses.
Easy to get into and hard to get out of Merchant Cash Advances (MCAs) should be the last resort for small business owners that need funding quickly or who may not qualify for a traditional bank loan.
Before you consider taking a Merchant Cash Advance (MCA), please seek other alternative (non-bank) financing as there are much better options out there for your business.Your Merchant Cash Advance (MCA) broker will not tell you this though since they are looking to make 10% to 15% commissions on the Merchant Cash Advance (MCA) loan that they are trying to sell you.
If your business loan broker suggests a Merchant Cash Advance (MCA) to you, run away immediately and find a new business loan broker that does not recommend Merchant Cash Advances (MCAs)!
Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program. -
If Merchant Cash Advance (MCA) payments have become unsustainable, then closing or changing your bank account is an option for immediate relief.
This will create an instance of default and Merchant Cash Advance (MCA) companies will deploy aggressive collection activity and it will begin in short order.
Help us protect you and your business.
Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program. -
Merchant Cash Advance (MCA) advance or “loans” are normally secured by UCC (Uniform Commercial Code) lien filing.
This means you can risk losing those assets if you can't afford to repay your Merchant Cash Advance (MCA). -
A stop payment order request at your bank, even if you have not revoked your authorization with the company, can stop an automatic payment from being charged to your account. This instructs your bank to stop the company from taking and drafting further payments from your account.
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To stop the next scheduled payment, give your bank the stop payment order at least three business days before the payment is scheduled. You can give the order in person, over the phone or in writing. Your bank will charge a one-time “stop payment” fee.
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NOT A REVERSE CONSOLIDATION!
A Merchant Cash Advance (MCA) or Debt Consolidation Loan pays off all Merchant Cash Advances (MCAs) while a Reverse Consolidation does not pay off your Merchant Cash Advances (MCAs).
A merchant cash advance (MCA) consolidation is one new loan or new financing used to payoff several smaller loans or Merchant Cash Advances (MCAs).
The goal is to lower total daily, weekly and monthly payments by extending the payback term (amortization), lowering the rate, or both.
Some programs are structured differently or give you a longer term to payoff the current debt while others may have a shorter payoff term.
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WARNING: REVERSE CONSOLIDATION IS NOT A TRUE CONSOLIDATION!
A Merchant Cash Advance (MCA) Consolidation Loan should pay off all Merchant Cash Advances (MCAs) while a Reverse Consolidation does not pay off your Merchant Cash Advances (MCAs). Be sure you know the difference.
With a Merchant Cash Advance (MCA) Reverse Consolidation, normally a Merchant Cash Advance (MCA) funder will deposit weekly amounts in the beginning of the week to cover all existing Merchant Cash Advance payments that are due for the week. They will not pay off your Merchant Cash Advances (MCAs) with a lump sum.
At the end of the week, the Merchant Cash Advance (MCA) funder will take a weekly payment which is 25% to 30% less than the total weekly payments currently due to the Merchant Cash Advance (MCA) companies.
A Reverse Consolidation does not pay off or consolidate Merchant Cash Advances (MCAs). It simply lowers your payment by 25% to 30% but be careful as a Reverse Consolidation adds more MCA debt to your total MCA debt keeping you in the endless Merchant Cash Advance (MCA) cycle!
A Merchant Cash Advance (MCA) Reverse Consolidation is simply a new Merchant Cash Advance (MCA) on top of all exiting Merchant Cash Advances (MCAs).
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The crux of a Merchant Cash Advance (MCA) contract is that your business’ future accounts receivables and/or sales deposits were sold and purchased at a discount according to the Merchant Cash Advance (MCA) contract.
The proceeds that you received at “funding” were not a loan, they were future sales receipts received in advance from the Merchant Cash Advance (MCA) company from a discounted sale of your future accounts receivables and/or sales deposits.
In the MCA contract, a borrower is called a “Merchant” and the Merchant Cash Advance (MCA) company is called a “Purchaser” since they purchase future accounts receivables and/or sales deposits at a discount to current value. -
A merchant cash advance is a form of alternative (non-bank) financing for small-businesses.
Merchant Cash Advance (MCA) companies claim that their financing product is technically NOT a loan.
Merchant Cash Advance (MCA) companies, upon execution of a Merchant Cash Advance (MCA) Agreement (contract), typically place a UCC (Uniform Commercial Code) lien across all business assets (cash, AR, inventory, etc) as collateral (security) to protect them in instances of default by a “Merchant” (business and business owner).
Personal guarantees are normally required which puts the business owner in a position where they agree to guarantee the payments if the business cannot continue to make them.
Personal guarantors are responsible for MCA contract payments, personally according to the Agreement, even if their business ends up failing, shutting down or filing for bankruptcy (insolvency).
A Merchant Cash Advance (MCA) company’s Receivable Purchase Agreement is a business-to-business contract that gives you an upfront sum of cash in exchange for selling your future receivables and/or sales deposits at a discount to their current value.
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Refinance and pay off all Merchant Cash Advances (MCAs) through our refinance program. One new bi-weekly or monthly payment through a term loan or line of credit.
Solve your Merchant Cash Advance (MCA) issues: RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program.
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Restructure all existing Merchant Cash Advances (MCAs) through our Restructuring Program.
One new weekly, bi-weekly or monthly payment (your choice) into our debt Restructuring program and escrow services.
With our expertise and deep knowledge of distressed debt collection and business debt restructuring, Kanjorski Partners LLC can assist you in Restructuring all Merchant Cash Advances (MCAs), resulting in lower payments and a longer period of time to pay off your business debt.
Our Restructuring experts restructure the original Merchant Cash Advance (MCA) contracts, in writing and accepted by both parties, so your MCA debt is permanently restructured on a contractual basis.
Solve your Merchant Cash Advance (MCA) issues:
RESTRUCTURE or REFINANCE your Merchant Cash Advances (MCAs) in our program.