WHAT HAPPENS NOW THAT A I CANNOT CONTINUE TO PAY MY MERCHANT CASH ADVANCES (MCAs)?
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Excerpt from our latest report on the dangers of MCAs…
Merchant Cash Advance companies use extremely aggressive, shaming and dirty, back-handed collection tactics to attempt collections on defaulted or struggling businesses.
One common tactic is collection attempts under Article 9 of the Uniform Commercial Code (UCC) which allow creditors who have filed a valid UCC lien on some or all of a business’ assets to notify accounts receivable creditors of the business to pay them and not the business.
Even when a business speaks to the MCA company and attempts to work out a payment plan that they can afford, the MCAs normally immediately start using these aggressive collection tactics and do not agree to a modification (Restructure) of the MCA. The business is now running out of options to deal with their MCA debt.
Many businesses, distraught by a now even worse situation, attempt to change bank accounts and/or block future payments to MCA companies in a desperate attempt to keep its doors open. Defaults for non-payment become imminent and all sorts of other default covenants are tripped in the Receivables Purchase Agreement when the business is frantically trying to find a way out of the MCAs that have leeched onto their business bank account and won’t let go.
Eventually, and in short order, the business’ options remaining seem to only be to file bankruptcy and reorganize or liquidate the business and close its doors.
But is this the only option? We think not.
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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:
Merchant Cash Advance (MCA) Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidationMerchant Cash Advance (MCA) Debt Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-servicesMerchant Cash Advance (MCA) Help & Information for Business Owners-
Merchant Cash Advance (MCA) information and resources — KANJORSKI PARTNERS, LLC