Three-MCA stack collapsed two months from default
A 22-year masonry contractor in Queens stacked three positions to bridge a delayed municipal receivable. By the time they reached us, daily debits exceeded weekly revenue. Here's exactly what we did.
$28K weekly debits on $22K weekly revenue.
The client built their business over two decades doing brick-and-mortar masonry work for the City of New York and several mid-sized GCs. In late 2023, a single $480K receivable from a municipal contract slipped from "30 days" to "180+ days" — an unrecoverable timing gap for a 12-employee shop.
Position #1 was supposed to be a bridge. By the time we picked up the phone, the client had stacked two more positions just to service the daily debits on the first. Net cash flow had been negative for 11 weeks. Payroll was being funded out of the owner's personal HELOC.
- $28,400 in combined daily debits across 3 funders
- 11 consecutive weeks of negative net cash
- UCC notice from MCA #2 received 14 days prior
- 12 employees, 22 years of operating history at risk
- Funder #2 had requested a Confession of Judgment
Three positions. Three funder profiles. Three negotiation tracks.
14 mo, day-by-day
Emergency intake
Funder #3 had filed acceleration. Mapped the stack and identified the 60-day default window.
Standstill on all 3 MCAs
Cease-debit notices to all funders. SBA position explicitly preserved.
Funder #3 settled at 30%
Bridge funder accepted 30% to avoid litigation expense — first deal cleared in three weeks.
Funder #2 settled at 35%
Refi position closed. Stack momentum building, owner returning to operations.
Funder #1 final settlement at 39%
Lead funder closed at 39%. All three MCAs satisfied for $141k against $395k stack.
I went from not sleeping at all to actually thinking about which jobs I want to take. Delancey didn't just settle the debt — they gave me my company back.
What the next 36 months look like
Operations Restored
Daily debits eliminated. Payroll fully covered from operating revenue for 9 consecutive months as of latest review.
No COJ Filed
Confession of Judgment threat from MCA #2 was withdrawn as part of the structured settlement. No public judgment on record.
Liens Released
All three UCC-1 financing statements terminated within 30 days of final settlement. Client now eligible for traditional financing.
Crew Retained
All 12 employees retained through the workout. Two new hires made in month 11 to service a new GC contract.
Receivable Recovered
The original $480K municipal receivable was collected in month 8 — used to fund a portion of the lump-sum settlements.
Owner's HELOC Repaid
The personal HELOC the owner had drawn on to make payroll was fully repaid in month 16. Personal credit restored.
14 months, day-by-day. Standstill, audit, sequenced settlement.
Day 0 — founder reached out at 8:14am after receiving a UCC notice from MCA #2. By 11am we had executed standstill on all three positions. Day 4 — our team mapped factor rates, daily debits, and remaining balances across all three MCAs. Identified $48K in usurious fees and $112K in already-paid principal misallocated to factor cost. Week 2 — sent demand letter outlining sustainable payback structure to MCA #1.
Week 5 — MCA #1 settled at 32¢ on the dollar. Lump-sum payoff structured against a 3-month operating reserve. UCC released. Funder #1 closed. Months 4–9 — coordinated negotiation across MCA #2 and #3, leveraging the Funder #1 settlement as anchoring evidence. Month 9 — MCA #2 settled at 38¢. Month 14 — MCA #3 closed at 29¢. Total reduction across all three positions: 68%.
Daily debits eliminated. Operations restored. Crew retained.
Daily debits eliminated. Payroll fully covered from operating revenue for nine consecutive months as of latest review. The Confession of Judgment threat from MCA #2 was withdrawn as part of the structured settlement — no public judgment on record. All three UCC-1 financing statements terminated within 30 days of final settlement; client now eligible for traditional financing.
All 12 employees retained through the workout. Two new hires made in month 11 to service a new GC contract. The original $480K municipal receivable was collected in month 8 — used to fund a portion of the lump-sum settlements. The personal HELOC the owner had drawn on to make payroll was fully repaid in month 16.
Numbers at a glance
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Names withheld for client privacy. Industry, location, and dollar figures are accurate. Past results do not guarantee future outcomes — every case is fact-specific. Delancey Street is not a law firm.
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