Running a business isn’t for the faint-hearted.
The landscape is unforgiving, the competition is relentless, and the margin for error is razor-thin. Success doesn’t happen by chance—it’s the result of calculated decisions, unwavering focus, and an unrelenting commitment to the right priorities.
If you’re coasting, hoping for a lucky break, or making half-hearted attempts to manage your challenges, you’re already losing.
This article is intended to give you the hard truth: If your business is going to survive, grow, and achieve victory, there are non-negotiables you must depend on.
These are not optional. Ignore them, and your business becomes another statistic.
Embrace them, and you give yourself a fighting chance in this brutal game of commerce.
If your business is struggling with negative or strained cash flow and drowning in debt, you’re playing with fire. These two issues are silent killers that destroy businesses from the inside out.
Business owners tend to make bad business decisions when cash flow is strained and business debt is weighing down on business operations.
Left unchecked, they can cripple business operations, ruin your reputation, and push you into insolvency. It’s time to face the facts and take action before it’s too late.
When it comes to business loans, many owners make a critical mistake—they focus solely on how quickly they can pay it off.
But the reality is, a shorter payback period is not typically the best decision for your business.
In fact, rushing to repay a loan over one or two years can crush your business cash flow, limit growth opportunities, and push your business into a corner.
On the other hand, a 10-year payback period can provide the breathing room you need to grow, invest, and thrive.
Business cash flow issues are one of the most common challenges business owners face.
The constant pressure of paying employees, managing inventory, covering rent, and handling unexpected expenses can lead many entrepreneurs to seek quick fixes.
Borrowing money to fill the gap often seems like the easiest and most logical solution.
But relying on debt to solve cash flow problems is rarely effective and can make your financial situation even worse.
While debt may provide short-term relief, it’s not a sustainable strategy for fixing cash flow problems.
In fact, it often exacerbates the root issues, leaving businesses more vulnerable in the long run.
Let’s explore why taking on more debt isn’t the answer and what steps you can take to create a more stable financial foundation.
Running a business often requires borrowing money, but not all debt is created equal.
When business cash flow is tight, it’s tempting to take on short-term, high-cost business loans to keep things running.
The promise of fast cash can feel like a lifeline—but it’s often the anchor that sinks the ship.
Short-term and high-cost business debt might seem like a quick fix, but it often does far more harm than good.
Why is this type of financing so dangerous and what you should do instead to ensure the long-term financial health of your business?
Benefits of Refinancing & Consolidating Business Debt + Merchant Cash Advance (MCA) loans include:
One monthly payment
Fixed interest rate
One lender
Flexible terms
Working capital
Debt Refinancing consolidation is the process of replacing multiple loans with one single loan. This reduces the number of creditors you are paying by consolidating your debts into one payment through a single lender.
1-Minute or Less Qualification for Business Debt & Merchant Cash Advance (MCA) Refinancing
Payoff all Business Debt & Merchant Cash Advance MCA debt to a term loan
One monthly payment on a 24 to 60-month term loan
All business debt paid off to a $0 balance at closing
Interest rates 14% to 18% (plus closing costs, PIK and legal fees)
Short-term Refinance (12 to 18-month term loan) can close in 3 to 5-business days
Long-term Refinance (24 to 60-month term loan) can close in 3 to 4-weeks
Working capital is available at closing in Refinance consolidation transactions
A new, on-going relationship with a Capital Partner (not just a one-time transaction)
Interest-only for 6 to 9-months after closing is available
Reconcile your Merchant Cash Advance MCA contract and payments
HAVE YOU RECONCILED YOUR PAST AND FUTURE MCA CONTRACT PAYMENTS?
Over payments on your MCA contract(s) may be present right now.
Your business may be owed over payment credits or refunds.
YOU MAY BE OWED MONEY FROM MERCHANT CASH ADVANCE MCA COMPANIES!
STOP TAKING MERCHANT CASH ADVANCE (MCA)!
MCA-taking allows MCA companies to steal your top-line sales.
When you take an MCA, the “factor” rate that you pay is directly related to the amount of top line sales that you are giving away.
$100,000 MCA at 1.38x “factor rate” is the SAME AS IMMEDIATELY GIVING AWAY $38,000.
That is why you don’t have enough cash flow.
That is why you cannot afford the daily or weekly payments.
DEAL TABLE: $1,370,000 IN MCA LOANS PAID OFF TO A SHORT-TERM (18-MONTH) “MCA RELIEF” REFINANCE + $750,000 IN WORKING CAPITAL
SaaS and I.T. Cloud Services Company with Merchant Cash Advance MCA loans and other high-interest, short-term debt totaling ~$1,370,000.
The Company was paying ~$197,072 Total in monthly payments to MCA companies and short-term debt providers.
At closing, all MCAs were paid off for a discounted amount and zero-balance letters (ZBLs) were issued to the Company from the MCA loan companies.
The Company’s new TOTAL monthly payment is now $79,500 (payment reduction of over 60%, down from $197,072), and company was given $750,000 of working capital at closing.
It’s is extremely important to understand the true Cost of Capital when you are considering taking on any type of business debt financing.
This is the #1 reason that MCA loans destroy good, profitable businesses since MCA loan’s Cost of Capital is extremely high compared to all other business debt financing options.
DEAL TABLE: $500,000 IN MCA LOANS PAID OFF TO A SHORT-TERM (18-MONTH) MCA RELIEF REFINANCE + $100,000 IN WORKING CAPITAL
Real Estate Management Company with Merchant Cash Advance MCA loans and other high-interest, short-term debt totaling ~$500,000.
The Company was paying ~$134,972 total monthly payments to MCA companies and short-term debt providers.
At closing, all MCAs were paid off for a discounted amount and zero-balance letters (ZBLs) were issued to the Company from the MCA loan companies.
The Company’s new total monthly payment is now $64,000 (payment reduction of over 52%, down from $134,972), and company was given $100,000 of working capital at closing.
DEAL TABLE: $900,000 IN MCA LOANS PAID OFF TO A LONG-TERM LOAN + $500,000 IN WORKING CAPITAL
General Contractor and Builder with Merchant Cash Advance MCA loans and other high-interest, short-term debt totaling $900,000.
The Company was paying $123,842 total monthly payments to MCA companies and short-term debt providers.
At closing, all MCAs were paid off for a discounted amount and zero-balance letters (ZBLs) were issued to the Company from the MCA loan companies.
The Company’s new total monthly payment is now $48,612 (payment reduction of over 60%, down from $123,842), and they were given $500,000 of working capital at closing.
Merchant Cash Advance MCA refinance and consolidation pays off all your MCAs to a zero balance and stretched your business debt over a longer period, therefore lowering your total monthly debt payments by 50% to 90%+.
We always prefer to hear more details of your business financing situation and goals, now and in the future, prior to making specific recommendations. Please book a consultation call here —>
Kanjorski Partners LLC’s consultants and advisors are equipped to handle most any MCA stressed and/or distressed situations.
Generally we have two types of MCA refinance programs and processes:
1) Short-term MCA Relief (Payoff and Consolidation to a Longer Term)
3 to 5-business-day process (app to closing) for MCA payment relief and working capital
MCAs paid off to a zero balance at closing and UCC removed
Cost of capital ranges from 18% to 28% (pending underwriting risk assessment)
Weekly or Bi-weekly payment options (determined in underwriting)
12 to 18-month term (pending underwriting)
Reduce your total monthly debt service payments by 50% to 60%
2) Long-term Full Refinance (Payoff and Refinance all business debt to a Longer Term)
Full refinance and payoff of all business debt (will leave a bank, SBA or AR factoring relationship in place)
3 to 4-week process (app to closing) for a full refinance (recap) of all business debt
Working capital provided at closing (determined in underwriting)
One monthly payment
2 to 3-year term (and in some cases and industries, 5 to 7-year+ or longer)
SBIC, private equity and investment banking is also available for special situations
MCAs paid off to a zero balance at closing and UCC removed
Cost of capital ranges from 12% to 18% (pending underwriting)
Monthly payment is principal and interest
Interest only (IO) “relief” period for 6 to 9-months after closing
Reduce your total monthly debt service payments by 60% to 90%
SHORT-TERM MCA REFINANCE —> 12 to 18-month term —> weekly and/or bi-weekly payments
—> 3-5 days application to closing —> APPLY HERE
LONG-TERM MCA REFINANCE —> 24 to 36-month term —> monthly payments
—> 2 to 3-weeks application to closing —> APPLY HERE
“…Defaulting (missing or stopping payments) on a Merchant Cash Advance (MCA) can potentially drain your business’ bank account, trigger aggressive collection action under Uniform Commercial Code (UCC) and civil litigation. Default under the provisions of a Merchant Cash Advance (MCA) agreement can put your business and you personally in a difficult position.
If you cannot continue to afford your Merchant Cash Advance (MCA) payments,
there are solutions for you and your business!….”
“….Merchant Cash Advance (MCA) is 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…..”
1) MERCHANT CASH ADVANCE (MCA) REFINANCE:
Refinance and payoff your Merchant Cash Advance with a new term loan or line of credit
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation
2) MERCHANT CASH ADVANCE (MCA) RESTRUCTURE:
Re-negotiate your Merchant Cash Advance agreement(s) to longer terms with lower payments that your business can manage and afford to pay back on a new weekly, bi-weekly or monthly payment schedule
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services
Continue to full post….
Read our post to hear about all of your options and to setup a
FREE consultation call for Merchant Cash Advance (MCA) Solutions…..
Merchant Cash Advance (MCA) Debt Refinance-
https://www.kanjorskipartners.com/merchant-cash-advance-refinancing-consolidation
Merchant Cash Advance (MCA) Debt Restructuring-
https://www.kanjorskipartners.com/merchant-cash-advance-and-business-debt-restructuring-services
Merchant Cash Advance (MCA) Help & Information for Business Owners-
https://www.kanjorskipartners.com/merchant-cash-advance-information-and-resources-refinancing-restructuring-stop-merchant-cash-advance-lower-merchant-cash-advance-payments
“…Merchant Cash Advance (MCA) has many disadvantages that you should be aware of before you enter into a MCA receivables purchase agreement. Weigh these disadvantages against the potential benefits.
1. MERCHANT CASH ADVANCE (MCA) IS AN EXTREMELY EXPENSIVE FORM OF FINANCING
2. MERCHANT CASH ADVANCE (MCA) IS A SHORT-TERM FINANCING OPTION, NOT A SOLUTION
3. MERCHANT CASH ADVANCES (MCAs) DO NOT SOLVE CASH FLOW PROBLEMS
4. SELLING FUTURE SALES IN A MERCHANT CASH ADVANCE (MCA) AGREEMENT IS DANGEROUS…”
Read our full post about the “Disadvantages of Merchant Cash Advance (MCA)”
“…When your business financing broker is presented with an “Approval” from the Merchant Cash Advance (MCA) company, your broker chooses from a list or tier of “Offers” at each Merchant Cash Advance (MCA) company. This list of offer options contains variable commission rates and payback terms and cost to the borrower. (Ex.- $100,000 in “funding” at a 1.35x factor rate or $135,000 payback). Your “trusted, friendly broker” adds from 0.10x to 0.15x to the offer and presents it to you as: $100,000 in “funding” at a 1.50x factor rate of $150,000 payback…”
Business Finance & Strategy Advisors
Refinance. Restructure. Reorganize.
Help with Business Debt, Loans and Merchant Cash Advance (MCA)
