Vol. I · Independent Publication Not a Lender · Not a BrokerBy Bar Alezrah
All the funding facts that are fit to print
Step 4 of 4

Stuck in MCA Debt? You Have Options.

Take a deep breath. You're not alone, and this is fixable. Here's your step-by-step plan to get out.

Step 1

STOP. Don't Take Another MCA

The #1 mistake business owners make is taking a second MCA to pay the first. This is called 'stacking' and it will make everything worse. No matter how bad things feel, don't stack.

Step 2

Add Up What You Owe

List every MCA: who you owe, how much is left, what your daily payment is. You need to see the full picture before you can fix it.

Step 3

Call Your MCA Company

Yes, really. Ask for a lower holdback percentage or a payment pause. Many will negotiate. they'd rather get some money than none if you default.

Step 4

Consider a Settlement

MCA companies often accept 40-60 cents on the dollar as a lump sum settlement. If you can scrape together some cash, you might settle for way less than you owe.

Step 5

Get Legal Help If Needed

If you signed a Confession of Judgment, have UCC liens, or are being threatened. talk to a lawyer who knows MCA contracts. Some states have laws that protect you.

Step 6

Rebuild and Move Forward

Once you're out, rebuild your credit, get UCC liens removed, and set up a real line of credit so you never need an MCA again.

Is Your Bank Account Being Frozen?

If an MCA company is threatening to freeze your account or has already done it, you need a lawyer NOW. This is time-sensitive.

Read: What Happens When You Default

How long until you're free?

Use our calculator to see your payoff timeline.

Open Payoff Calculator

Detailed Guides