Nov 9, 2021
Do you have a merchant cash advance loan, a merchant cash advance, or any business loan that you're having trouble repaying? If this is the case, you may face various issues, including collection calls, lawsuits, harm to your business and personal credit histories, and more. The sooner you seek assistance with your business debt, the simpler it will be to work out a solution with your lender. Here's what you need to know about merchant cash advances and how to deal with them if you're overdue on your payments.
A merchant cash advance(MCA) is a type of business financing that involves receiving a large sum of money in exchange for a percentage of future debit or credit card sales or income. When a company needs immediate capital or cash, it usually chooses a merchant cash advance. Loans are pretty easy to obtain, but they come with extremely high-interest rates, making repayment difficult.
The payback may be required to be made as a debit from your bank account on a daily or monthly basis. However, these payments might deprive your company of much-needed cashflow and, ultimately, your wallet. If you default on a merchant cash advance loan, it can be very damaging to your business, leading to litigation, judgments, and liens from the lender, as well as poor credit reports. It has the potential to put you out of business.
Depending on where you are in the process, you may be asked to sign (or have already signed) a confession of judgment, leaving you with limited legal recourse and compromising both your personal and business assets.
Royale Capital will assist you if your company defaults on a Merchant Cash Advance or is being debilitated by weekly or daily withdrawals. MCAs may appear to be an appealing solution for firms with a working capital disturbance or require funding to explore a time-sensitive possibility, but the conditions are frequently unsustainable.
Thousands of firms collapse as the repayment of this form of advance suffocates their operational cash. We provide business owners in this circumstance with an affordable way out of debt and a clear path to recovering control of their finances and their life.
Royale Capital’s MerchantCash Advance Debt Resolution service is available in all 50 states. It is designed to assist business owners in overcoming the severe debt difficulties caused by Merchant Cash Advance transactions.
There is no such thing asa one-size-fits-all MCA debt solution. Our debt relief techniques, on the other hand, are all concentrated on the following actions:
· We quickly secure your company's finances.We'll cease the daily withdrawals and make sure your money isn’t jeopardized.
· We reach an amicable agreement. Our experts collaborate with your lenders to reach terms that your company can truly meet.
· Your company begins to set aside funds for the resolution. With the elimination of daily withdrawals, your company can save for the agreed-upon payment.
· You pay off your MCA debt. You repay the lender following the settlement terms and reclaim control of your life.
The procedure outlined above will result in a complete resolution of your MCA debt, but time is of the essence. MCA funders have developed an aggressive lending cycle that is not designed to benefit small business owners, but you don't have to give up on everything.
We can help you immediately if you have at least $50,000 in high-cost Merchant Cash Advance(MCA) company debt and struggle to make payments. Numerous consumers have informed us that their debt gave them anxiety, despair, dread of revenue loss, the danger of business closure, and bankruptcy. They were continuously monitoring their bank account balances numerous times a day to ensure that the daily MCA payment was made withdrawal was not missed.
Does this ring a bell? If this is the case, we can assist you in significantly reduce your MCA debt payments to bring them in line with your existing revenue stream and what your firm can reasonably manage.
Following your initial meeting, we will request your MCA funding paperwork to run your file through our internal underwriting processes. We will explain precisely what restructuring arrangements we can put in place with your lenders once we have completed the process, which should take a few days.
We will begin finalizing the revised agreements with your lenders as soon as you agree, allowing us to free up your cash flow immediately. Ours is a 2–4-week approach that saves money for 90% of our clients.
The mechanism we put in place is intended to resolve your MCA debt ultimately, but time is essential. MCA lenders have a rigorous lending loop built in that is not designed to benefit small business owners, but that doesn't mean you have to lose hope and risk losing all you've worked so hard to achieve. You must take charge now and take action to eliminate MCA debt as soon as possible before it spirals out of control!
The method for getting out of a merchant cash advance isn't simple — there isn't one approach that works for everyone. As a result, it's critical to examine each alternative and weigh its advantages and disadvantages. Then you should consider your financial circumstances and decide which option is ideal from that standpoint. Applying for a term loan or a secured loan, for example, is appropriate if you have the necessary cashflow to meet the monthly installments. If you don't, you might still be dealing with some of the same issues you are now.
Debt settlement is a good option for people who don't have good credit and can't afford to make hefty monthly payments. However, you will want revenue to acquire sufficient funds with which to bargain.
Finally, just like in a personal debt situation, bankruptcy should be viewed as a last choice.Otherwise, you may end up destroying your credit score unnecessarily.