Two MCAs settled before the practice closed
A solo dental practice was 14 days from defaulting. Same-day intake and standstill kept the doors open.
Two practices, one owner, 14 days from default.
A solo dental practitioner in Brooklyn ran two clinics. Two MCAs taken in 2023 to fund equipment upgrades had compounded into a daily debit she could no longer service. Insurance reimbursements ran on a 60–90 day cycle, while MCA debits ran daily — a structural mismatch that had cost the practice $46K in overdraft fees over six months.
Three positions. Three funder profiles. Three negotiation tracks.
8 mo, day-by-day
Intake + cash-flow audit
Reviewed 90 days of patient revenue, ACH debits, supplier obligations. Quantified daily burn from the two MCAs.
Standstill letters to MCAs
Attorney-supervised cease-debit notices to both funders. Equipment lease + supplier AP explicitly preserved.
Both MCAs paused ACH
Daily debits stopped on both. First negotiation calls held week 2.
MCA #2 settled at 36%
Smaller stacked position settled first. Practice cash flow stabilized.
MCA #1 settled at 41%
Holdout closed at 41% of current balance. Full satisfaction letter delivered. No litigation filed.
I had stopped taking patient calls because I was constantly on the phone with the funders. Delancey took the funders, I took the patients, and the practice came back.
What the next 36 months look like
Clinics operating
Both Brooklyn locations remain open.
Reduction
Combined settlement at 36¢ on the dollar across both positions.
YoY patient volume
Practice volume rebounded once the owner could focus on operations.
To full resolution
From standstill to executed settlement on both MCAs.
Standstill same day. Settlement at 36¢.
We executed standstill on both MCAs the same afternoon as the intake call, citing imminent default. Both funders accepted an extended 30-day standstill on the strength of insurance receivable evidence. We then built a 13-week cash flow forecast that put the maximum sustainable monthly outflow at $14K. We negotiated MCA #1 to a lump-sum settlement at 32¢ funded from a personal real estate equity loan; MCA #2 to a structured settlement at 39¢ paid over 12 months from operating cash. Both included UCC releases.
Both clinics operating. Patient volume up 22% YoY.
Both clinics operating today. Patient volume is up 22% year over year — a function of the owner being able to focus on practice management rather than cash triage. The practice's payment processor restored normal limits within 30 days of the UCC release. The owner has not taken on any short-term financing since.
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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