Restructure
60%
lower daily payment
Proactive MCA Defense
Pre-default MCA strategy — when reconciliation still works
Restructure merchant cash advances before default. Reconciliation rights, contractual modifications, stacking unwind, and pre-COJ strategy. The earlier you call, the more options you have.
PRE
pre-default
RECON
reconciliation rights
UNWIND
stacking unwind
COJ
pre-filing defense
THE PROBLEM
The window before default is where MCAs lose
PRE-DEFAULT WORKOUT
$420K stack
Reconciled & restructured · no default
Proactive MCA Defense is the version of the case where you call us before that happens.
Most MCA cases come to us after the first ACH bounces — when the funder has already declared default, filed a COJ, or frozen the merchant processor. By then the leverage has shifted.
Proactive MCA Defense is the version of the case where you call us before that happens. Reconciliation rights are still available. The contract still has its full set of merchant protections. The funder still has incentive to restructure rather than litigate.
It's the same case, weeks earlier, with 3x the optionality. It's also the version most owners never run because they didn't know it existed.
WHAT WE HANDLE
6 scenarios, opened up
01
Exercise contractual reconciliation rights to reduce daily debits in line with revenue decline.
How we run it
- 01Audit contract for reconciliation language
- 02Document gross-revenue decline
- 03Submit reconciliation demand
- 04Reduce daily debit per contract
Typical outcome
Avg outcome: daily debit cut 30–60% per funder
02
Negotiate term extensions, payment reductions, and amendment terms while still in good standing.
How we run it
- 01Map current contract terms across funders
- 02Build modification ask (term, payment, fee)
- 03Negotiate amendment terms
- 04Execute amended contracts
Typical outcome
Avg outcome: monthly outflow cut 40–70%
03
Strategic order of operations when paying down or restructuring multiple advances.
How we run it
- 01Inventory all open advances + balances
- 02Identify highest-cost positions
- 03Sequence paydown / settlement order
- 04Execute restructure plan
Typical outcome
Avg outcome: stack reduced and re-termed in 3–6 months
04
Stop the cycle of taking additional advances to pay existing ones.
How we run it
- 01Identify advance-on-advance pattern
- 02Build sustainable cash-flow model
- 03Halt new advances, restructure existing
- 04Stabilize operating cash
Typical outcome
Avg outcome: stacking cycle broken, sustainable burn
05
Engage funders before they file Confessions of Judgment, which is the highest-leverage moment in the contract.
How we run it
- 01Identify imminent COJ risk
- 02Engage funder pre-filing
- 03Negotiate forbearance or restructure
- 04Avoid COJ filing entirely
Typical outcome
Avg outcome: no COJ filed, workout closed
06
Identify the real per-month sustainable outflow and structure the plan to fit it.
How we run it
- 01Build 90-day cash-flow projection
- 02Stress-test against debt service
- 03Set sustainable monthly outflow
- 04Build restructure ask to that number
Typical outcome
Avg outcome: realistic plan that survives 90 days+
“
FROM THE DESK
The single highest-leverage moment in an MCA case is the day before the first ACH bounces. Reconciliation rights are intact, the funder hasn't escalated, and modifications close in weeks not months.
Our process
From
same-day
intake
to
closeout
Most cases hit resolution between months 3 and 6. We move on day one because deadlines don't wait.
01
30-min confidential call. We pull contracts, balances, and current status of each creditor.
Document review · Leverage map · Triage urgency assessment
02
Letter of engagement on file. We open communication with creditors on your behalf, work to pause aggressive collection actions, and help protect your bank accounts.
Engagement letter · Docket monitoring · Bank protection
03
Our team — and an affiliated attorney from our network when needed — handles every creditor communication. We document everything; you stop fielding calls.
Settlement memos · Counter-offers · Discovery if litigated
04
Signed settlement agreements, lien releases where applicable, and a clean path forward for the rebuild.
Final agreements · Lien releases · Closeout package
“Delancey Street walked us through every step. The settlement saved the business — and our credit.”
WHERE WE WORK
Proactive MCA Defense cases in all 50 states
FAQ
Common questions
I haven't defaulted yet — should I still call?
Yes. Pre-default is the highest-leverage moment in an MCA case. Reconciliation rights are intact, the funder hasn't escalated, and modifications are routinely negotiated without litigation. We see the best outcomes here.
What is "reconciliation" in an MCA contract?
Most MCA contracts include a reconciliation provision: if your gross sales drop, the funder will adjust the daily/weekly debit downward. It's a contractual right — but funders rarely volunteer it. We enforce it.
Can I just take another advance to pay these?
Almost never the right answer. Stacking compounds the problem and makes a future workout harder. We've never seen a case where the eighth advance solved the first seven. We map a real way out instead.
Will calling a debt firm trigger default?
No. Engaging counsel is your right and is not a contractual default trigger. The funder doesn't even need to know you've engaged us during the strategy phase.
What if I'm already in default?
Then you don't need Proactive MCA Defense — you need MCA Settlement, which is a different (more litigation-oriented) playbook. We do both. Tell us where you are and we'll route you correctly.
RESOURCES
Read more on proactive mca defense
Guide
Negotiation flow
1 Demand
2 Counter
3 Term sheet
4 Settled
How does business debt settlement work?
Step-by-step explanation of the negotiation, timeline, and what changes for your business.
Read article
Defense
VS
Fight
$0
if you win
When to settle vs. when to fight
Not every creditor responds to negotiation. Here's how to read the situation.
Read article
Strategy
Avg. payment reduction
54%
Best business debt settlement companies (2026)
How we compare on track record, pricing, and outcomes.
Read article
GET IN TOUCH
Talk to a strategist about your proactive mca defense case
Free initial review. We'll look at your contracts, the creditor mix, and what's actually triggerable in the next 30 days. No commitment, no sales pitch — just a real read on your situation.
Direct line
212-210-1851
Picked up by an actual case manager — no phone tree.
Email
info@delanceystreet.com
Replies within 4 business hours, 24/7 for COJ emergencies.
Confidential intake
Encrypted document upload
For uploading contracts, UCC notices, and bank statements.
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