Merchant cash advance relief is a top concern for business owners who are overwhelmed by daily or weekly payments and aggressive collection tactics. If you’re looking for ways to get relief from your merchant cash advance debt, there are several options. Those options may include negotiating directly with your merchant cash advance provider, requesting your business funder to perform a reconciliation pursuant to the contract, or exploring legal protections if you defaulted on your merchant cash advance. Contact Wilkie Puchi LLP for a free consultation and take control of your business’s financial future.

While merchant cash advances have less regulation than other traditional business financing products, the contracts can be confusing, and some include terms that may be unfair or even illegal. This article explains the most effective merchant cash advance relief strategies, the risks of debt settlement companies, what happens if you default, and how Wilkie Puchi LLP helps business owners like you find a path to fair resolution.

Understanding Merchant Cash Advance Relief and Debt Relief Strategies

Merchant cash advance relief is about finding ways to reduce or eliminate the burden of high daily payments and fees that come with MCAs. Many business owners turn to merchant cash advance debt relief when they realize that the cost of their advance is much higher than expected or their business revenue decreases from the revenue at the time of funding. Some MCAs can have effective annual percentage rates (APRs) as high as 350%. This can quickly drain your business’s cash flow and put you at risk of default.

Merchant cash advance debt relief can take several forms:

Reconciliation: You can ask your MCA provider to perform a reconciliation for the last month’s business receivables to see if your revenue was lower than it was at the time of funding. If it is, the funder is required to lower your payment amounts by the percentage of decline against the percent of future receivables they purchased. If they refuse to do this, no matter how long the reduced payments may be, they will be in breach of the agreement. Contact Wilkie Puchi LLP if your business funder is refusing to perform a true reconciliation on your account.
Debt Consolidation: Some business owners use an SBA loan, traditional business loan, or line of credit to pay off their MCAs. This can lower your overall interest rate and simplify your payments.
Legal Review: Because many MCA contracts are confusing or even predatory, having an attorney review your agreement can help you spot illegal or deceptive terms. Wilkie Puchi LLP has experience identifying these issues and can help you pursue relief.

If you’re considering merchant cash advance relief, it’s important to act quickly. The longer you wait, the more fees and penalties can pile up. Because every MCA contract is different, it’s essential to have a trusted legal professional review your specific circumstances. The best path to MCA debt relief will depend on the unique terms of your MCA agreement and the financial needs of your business.

The Risks and Realities of Merchant Cash Advance Settlement Companies

Many business owners in distress are approached by merchant cash advance settlement companies promising fast relief or big savings. These companies claim they can negotiate with your MCA provider and settle your debt for less than you owe. While some settlement companies are legitimate, there are also some risks to consider.

How merchant cash advance settlement companies work:

They instruct you to stop making payments to your MCA provider and instead pay the settlement company a reduced daily or weekly amount into an escrow account.
They typically charge a percentage of your total outstanding debt enrolled into their program with those fees being paid up front.

Risks to watch for:

If your MCA provider refuses to negotiate, you could end up in default on your merchant cash advance, facing lawsuits, asset seizures, and additional fees.
Some settlement companies charge high upfront fees or use generic legal filings that may not protect you in court.
You may still be responsible for the full amount of your MCA, plus legal costs, if negotiations fail.

Because of these risks, it’s important to choose a reputable partner for merchant cash advance debt relief. Wilkie Puchi LLP offers personalized legal strategies, not one-size-fits-all solutions, to help you avoid the pitfalls of generic settlement companies.

Schedule a Free MCA Consultation with Wilkie Puchi LLP

What Happens If You Default on a Merchant Cash Advance? Legal Protections and Next Steps

Default on a merchant cash advance can have serious and immediate consequences. Most MCA contracts allow the lender to take aggressive actions if you miss payments, including:

Filing lawsuits against your business, sometimes in courts far from your location.
Freezing your business bank accounts or placing liens on your assets.
Enforcing confession of judgment clauses, which can let the lender get a court judgment without a trial.
Damaging your business credit, making it harder to get future loans or keep your doors open.

If you default on a merchant cash advance, you may also face additional fees and penalties, including default fees and non-sufficient funds fees. In some cases, lenders can even seize business assets or garnish your accounts.

How Wilkie Puchi LLP Helps With Merchant Cash Advance Relief

Many small businesses enter into MCAs with terms that are intentionally confusing or unfair. Wilkie Puchi LLP’s deep understanding of the MCA industry allows us to spot predatory practices, expose illegal or deceptive terms, and provide a pathway to fair resolution. Our approach to merchant cash advance relief includes:

Free consultations: We review your MCA agreements and financial situation to find the best merchant cash advance debt relief options.
Legal expertise: We challenge predatory or illegal contract terms and defend you in court if needed.
Negotiation and settlement: We negotiate directly with lenders to reduce your payments or settle your debt, always with your best interests in mind.

If you’re struggling with merchant cash advance debt relief, don’t wait until you default on a merchant cash advance. Contact Wilkie Puchi LLP today to schedule a free consultation or call us to discuss your options for merchant cash advance relief.

Merchant cash advance relief is possible, but it requires careful planning and the right support. Whether you are considering renegotiation, working with merchant cash advance settlement companies, or need legal protection after a default on merchant cash advance, it’s important to understand your rights and the risks involved. While merchant cash advances are legal, some contracts contain unfair or even illegal terms. Wilkie Puchi LLP has the experience and knowledge to help you find the best path to merchant cash advance debt relief.