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MCA Advocates

 

How Can An MCA Advocate Restructure Your MCA Loan To Make It Affordable?

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     Getting a Merchant Cash Advance for your business has never been easier. And even easier than getting a traditional loan from your bank. It seems like the MCA companies contact you at just the right time when your business needs money the most.

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     To qualify for your MCA loan, you simply provided 3-4 months of business bank statements. The MCA company takes an average of your gross revenues over those months and is willing to fund your business based on that average. We call that your top-line gross revenues. That number is then multiplied by 1.4 (most cases) equaling to 40% over what they are lending you. Ultimately you are selling them 140% of your future business. And here’s the fun part…Your MCA company deposits roughly 90% of the 140% they buy of your receivables, deduct their fees and then deposit the remainder amount into your operating account. As part of your agreement with the MCA you must give them access to your operating account to deduct your payment on a daily or weekly basis. They call this the hold back rate or pay back rate at approximately 15% (industry average). The rate and frequency of the deductions from your business account skyrocket your interest rate to greater than 200%. Quickly making this financial instrument unaffordable for your business.

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     You quickly realize your business may not be able to keep up with the payments no matter how profitable and successful your business is. And if you have more than one MCA your business is in jeopardy of default and likely will be out of business, get sued or file for bankruptcy protection.

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   Restructuring your MCA payments is one of the fastest ways to get your business back on track financially.

 

     By simply lowering your daily or weekly payments and lengthening out the terms of your agreement your payments can be made affordable. We lower your daily or weekly payments by at least 70% of what you're paying out to your MCA companies. Imagine what you could do with all of that cash flow that you don't give to the MCA's!

 

      We get calls from businesses every day telling us they can't afford their MCA payments anymore and can we help them.

     

       This is how we do it...We start by doing a true accounting of how much merchant cash advance debt your business has by looking at your MCA agreement contracts. We want to know how much of your accounts receivable was purchased for, your pay back rates and the length of your contract until your advance is paid off. Then we do an accounting of how much you've paid back to the penny and how much you still owe. We then look at how your business is performing in the months prior leading up to the advances becoming unaffordable.  

      We use real business accounting. Instead of looking at your business from your top line or gross revenues like the merchant cash advance companies do. We look at your businesses accounting from real business math which is based on your business’ bottom line. Real business math is your businesses gross revenues minus all your business expenses (leases, payroll, insurance, taxes, marketing, etc.) and what's left over is your net income. This is where we begin the negotiation with your merchant cash advance company. We do this legally. We have an attorney representing you. Not to create escalated litigation and drive-up costs but to deescalate the negotiation and keep your merchant cash advance company negotiations respectful and transparent as we present your position...which is...

Your merchant cash advance is unaffordable, and you qualify for a reduced payment.

 

     We then exercise clauses in your MCA contract to present your situation to your MCA company. We use a proprietary accounting system that helps us determine what your business can really afford. Not some arbitrary guess but real business accounting. Numbers that allow us to represent your business accurately and your need for a reduction.

     This negotiation is swift and takes 5-10 business days to complete. Within two weeks after engaging with us you will literally have new lower payments that your business can afford. Generally, 20-30% of what you were paying daily or weekly.

 

     We are effective at this for several reasons. Our CEO is a former attorney out of the state of New York. He knows intimately how the merchant cash advance lending industry works. Most all of the MCA companies are located within the state of New York. When a company defaults on a merchant cash advance loan, lawsuits are filed in the state of New York.  Representation by a New York state barred attorney is necessary and essential to defend your company’s rights. We file an answer, present your case and negotiate a payment your business can afford. Most importantly we are not trying to reduce the total amount owed in any way. You owe what you owe. We lead the voluntary payment negotiation with your MCA company wanting to pay off your MCA debt by simply demonstrating your need for a reduction.  

 

       Let's repeat this...We reduce the amount you are paying daily or weekly on average by 70-75% and extend the length of the loan. We do this by showing your MCA company your business’s true accounting coupled with clauses that they put into your contract that allow for a reduction based on what your business can afford. The best part is we get this done for you and your business in 5-10 business days. Literally in two weeks you will have new payments that support your business, not drain your profits.

                                     

      Imagine what you can do with all that extra cash flow.

     

      The end result...is you are thrilled with your new payments that now take the pressure off you and your business.  Payments you NOW can afford and the short amount of time it took to get your new payments.

      Your merchant cash advance company is satisfied because you have voluntarily agreed to honor your contract and pay all of what you owe.  

     And we get to be the hero that was able to solve a serious problem for your business and get it growing again. We believe that small business is the life blood of our economy. We look forward to helping you.

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Call Us Today and have an MCA Advocate Restructure Your MCA Loans!

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(888)660-9654