Nov 23, 2022
Many small businesses end up loaning merchant cash advances (MCAs) for two reasons. First, obviously, they are in desperate need of funding. Second, MCAs are easier to obtain than bank and asset loans. Besides, MCA loans can be set up quickly, which makes them even more accessible to business owners. However, this convenience comes often with a huge cost.
Merchant cash advances are extremely expensive, which is why so many businesses that pick the route of this financing path end up even worse than before. To help you out, in this article, we will discuss all you need to learn about getting out of the vicious cage of MCA loans.
Most businesses who are repaying their merchant cash advances already realize how difficult it is to manage their finances when they have to repay MCA loans. However, MCA loans can be harmful to you and your business for many reasons. Some of these reasons are:
When you ask for merchant cash advances, you focus only on the weekly or monthly payments instead of focusing on the affordability of the MCA loan and the total cost of the loan. You think that if you can afford to make weekly payments, you will be fine and repay your loan in full on time. However, life isn’t simple and things don’t always go as you plan them.
You don’t consider the long-term consequences of making weekly payments which are usually quite high. In most cases, businesses find it extremely difficult to make these high payments every week for a long time for one or another reason.
When cash advances are used incorrectly and used for situations that cannot be solved with an advance, such as a cash flow problem, it makes things only worse. You cannot make cash flow problems, profitability problems, collection problems, or bad financial management problems go away with merchant cash advances. Still, many businesses use their MCA loans to try to solve such problems and hence, end up in a grave financial position.
As small businesses continue to face financial problems, many of them opt for additional cash advances in the hope that this additional amount will fix the problem that the previous cash couldn’t. The biggest problem is that they don’t realize that getting multiple merchant cash advances is the most expensive mistake one can ever make in their lifetime.
Fortunately, when you find yourself in such a bad financial condition, there is still a way out. While getting bank loans can be very difficult in such a stage, you can find lenders who refinance MCA loans to debt consolidation loans.
Loan consolidation is a process in which a fixed-rate loan is split into equal amounts and each payment includes both the principal and the interest. To be more precise, each payment pays off the required interest expense for the period and the remaining amount goes towards decreasing the principal amount.
At Royale Capital, we are the USA’s leading lender who refinances MCA loans to debt consolidation loans. In addition to MCA loans, we offer business debt restructuring also for other types of debt, such as equipment leases, bank loans, lines of credit, business vendors and suppliers’ invoices, and business credit cards. We accept applications from business owners in secured or unsecured debt of $30,000 to$10 million.
With our debt restructuring process, you will benefit in various ways and feel like a huge burden is lifted off your shoulders. With our debt restructured program, you can realize approximate savings of 50% excluding fees or 25% including our fees. You can repay your new loan on a new 24 to 78 weekly payment schedule, which is a 6 to 18-month timeline.
Business owners don’t have to pay any upfront fees as we get paid during the new repayment term. This way, you can significantly improve your business cash flow and overall profitability, which is almost impossible during the repayment of MCA loans. Plus, you can avoid serious defaults and prevent yourself or your company from bankruptcy.
Refinancing your MCA loans to a debt consolidation loan with Royale Capital is the ultimate ticket to save your business from closing and maintain business relationships for the future as well.
At Royale Capital, we understand that each business is unique and hence, goes through unique circumstances. While some businesses have only one MCA loan that is difficult to repay, others have stacked multiple MCA loans which strangle their cash flow badly.
Therefore, first, we understand your business, analyze your financial condition thoroughly, and only then we plan our debt restructuring process for you. With us, you can eliminate your merchant cash advances forever because we focus on making sure that your finances are not at further risk. We don’t waste time because time matters a great deal when you have MCA debt. Besides, we consider your reality and hence, prepare the debt restructuring process accordingly.
We aim for a total resolution of MCA debt so that you can flourish and grow your business without feeling strangled or suppressed by the tension of merchant cash advances. We aim to help you get out of MCA debt default and benefit from MCA debt relief offered by us through debt restructuring.
So, if you are looking for MCA debt consolidation, debt consolidation, or MCA debt refinancing, Royale Capital is the best choice as we are the lender who refinances MCA loans to debt consolidation loans or MCA consolidation loans. If you have any queries or need further details on how we can help you get out of merchant cash advance debt or other debts that you have, please get in touch with us today.
