The Vicious Merchant Cash Advance Cycle:
MULTIPLE MERCHANT CASH ADVANCES
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Excerpt from our latest report on the dangers of MCAs…
“…The reason the vicious cycle of MCAs can sustain itself for some period of time is because of one simple word in the industry, “stacking”. MCA “stacking” is to put a second MCA on top of a first MCA and a third MCA on top of the second MCA and so on, until the business and its’ cash flow becomes so exhausted that it can’t continue to make its payments as scheduled and then its left with multiple MCA “stacks” to pay back….”
“…The 1st MCA company relies on the 2nd MCA company to come in with a new advance to ensure pay back of the 1st MCA. The 2nd relies on the 3rd and so on until the business is no longer fundable. It is sort of like musical chairs. When the music stops and there are no more chairs for the business to sit down on [no more MCA companies want to “fund” (loan to) a business because they have too many MCAs], the business ends up completely over-leveraged with debt and is out of options for future financing….”
If one MCA is barely sustainable, then how does a business handle a 2nd, 3rd, 4th and so on?
The real answer is “They cannot.”
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Visit our post and download our latest FREE FULL MCA REPORT-
“The Critical Dangers of Merchant Cash Advances”
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Solutions are available to get you and your business out of the destructive MCA cycle.
MERCHANT CASH ADVANCE SOLUTIONS:
MCA Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidationMCA Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services