MCA Settlement Letter Template

[YOUR BUSINESS NAME]
[STREET ADDRESS]
[CITY, STATE ZIP]
[PHONE]
[EMAIL]

[DATE]

[MCA COMPANY NAME]
ATTN: Collections / Workout Department
[MCA COMPANY ADDRESS]

Re: Settlement Offer — MCA Agreement dated [ORIGINAL AGREEMENT DATE]
Agreement Number: [CONTRACT NUMBER]
Business Name on Agreement: [BUSINESS NAME]

To Whom It May Concern:

I am writing to propose a full and final settlement of the above-referenced Merchant Cash Advance agreement. This offer is made in good faith to resolve the outstanding balance without further collection action and represents the maximum I am able to pay under current business conditions.

CURRENT OBLIGATION SUMMARY

Total amount funded:              $[FUNDED AMOUNT]
Total amount already remitted:    $[AMOUNT ALREADY PAID]
Remaining balance per agreement:  $[REMAINING BALANCE]

SETTLEMENT OFFER

I am prepared to pay $[SETTLEMENT AMOUNT] as full and final satisfaction of the remaining balance, representing approximately [X]% of the outstanding obligation. This offer is contingent upon execution of a written Settlement and Release Agreement prior to payment.

SOURCE OF FUNDS

The settlement funds will be sourced from [SOURCE, e.g., "a personal loan from a family member," "business cash reserves," "proceeds from the sale of business equipment"]. These funds are available for a limited time and this offer expires on [OFFER EXPIRATION DATE].

BASIS FOR THIS OFFER

[Choose one or more of the following and customize:]

Option A (Hardship): Our business has experienced a significant decline in revenue due to [SPECIFIC CAUSE], reducing our ability to service this obligation. Supporting documentation including bank statements and profit and loss statements is available upon request.

Option B (No hardship, straight settlement): We are offering this settlement as a good-faith effort to resolve the obligation efficiently, without implying any inability to pay in full over time. We believe a prompt resolution at this amount is in both parties' interests.

REQUESTED TERMS

In exchange for the settlement payment of $[SETTLEMENT AMOUNT], I request:

1. A written Settlement and Release Agreement confirming that payment of the settlement amount constitutes full and final satisfaction of all obligations under the agreement, including any fees, interest, and costs.
2. A written confirmation that no further collection action, including but not limited to bank account debits, ACH pulls, UCC lien enforcement, or third-party collection referral, will be taken following execution of the agreement and receipt of funds.
3. A UCC-1 termination filing (if applicable) within [10 / 15 / 30] days of payment.
4. A satisfaction letter suitable for use with my bank.

NEXT STEPS

Please respond in writing to this offer within [5 / 7 / 10] business days. I am available to discuss terms and provide documentation. Please direct your response to the contact information at the top of this letter.

I hope we can reach a mutually acceptable resolution promptly.

Sincerely,


[YOUR NAME]
[YOUR TITLE]
[BUSINESS NAME]

[OPTIONAL] Enclosures:
- Bank statements for [PERIOD]
- Profit and loss statement for [PERIOD]
- [OTHER DOCUMENTATION]