If you’re reading this, it’s because you’re struggling with your expensive merchant cash advance loans. You may have stacked a number of merchant cash advance positions, or were convinced by a broker it was a good idea – and now you’re regretting it.
You need a solution to restructure your merchant cash advance debt. You’re probably borderline, about to default on a merchant cash advance, because the cost is so high and you have no way of surviving the daily payments.
The minute you have an unexpected cash flow slow-down, your high interest merchant cash advances could have a disastrous impact on your business.
What are your options when trying to restructure your merchant cash advance?
Negotiate with vendors/suppliers: Many owners never consider this, but one of the best ways to handle a cash flow issue is deal with the vendors/suppliers and negotiate new terms. Many people see terms with vendors as a fixed situation, but in many cases – vendors will treat you like partners and work with you. Some might be willing to lower costs, or spreading them over a longer term. Others might be willing to waive/reduce late fees or interest penalties.
Cut Costs: Rework your budget, and eliminate non-essential expenses. Consider reducing staff, entertainment, travel, etc. In some cases you might want to have seasonal, or part-time staff, instead of full-time employees. You might want to rent or lease equipment rather than buying it. Bottom line, look at the high interest items first.
Shut Down Your Business: This is not the best option. But it’s an option. If you shut down the business, you will force the MCA funder to pursue litigation in order to attempt to collect the money you owe them. If you have truly gone out of business and there’s no cash flow, you have no further payment obligation. Merchant cash advances aren’t reported to a credit reporting agency, and because there’s no collateral – the funder has no real avenue to collect once you’ve closed the business.
Beware! You can get into trouble if you do the following before shutting down the business
- Switching bank accounts
- Interfering with the lenders company to take ACH payments
- Change processing companies
- Take cash, or other payments, to reduce revenue into your bank account
In the scenario above, it’s likely the lender will accuse you of breaching your agreement and try to pursue legal options. You should avoid these actions.
Get a merchant cash advance consolidation
This is a great option since it allows you to EXTEND the term of your loan, and reduce your daily payment as a result. Delancey Street can help you restructure your merchant cash advance via a cash advance consolidation.
Our process is straightforward, and it costs you nothing to find out more information about it. In order to begin, please apply now online. Merchant cash advance consolidations are one of multiple options to help you reduce cash-flow crunches associated with multiple merchant cash advances. These reverse consolidations will help you reduce your daily payments, but won’t reduce/eliminate debt.
Reverse consolidations provide business owners with weekly disbursements to satisfy the daily existing Cash Advance payments
Reverse consolidations are like a Merchant Cash Advance and are repaid with automatic daily withdrawals at a reduced amount against the outstanding positions. It’s not a Debt Consolidation Loan. It simply frees up cash flow, which can prevent businesses from being crippled by having TOO MANY open positions.
- Fico score: 500+
- Time in business: 1 year+
- Weekly Distributions