Merchant Cash Advances (MCAs) can be a lifeline for small businesses, but the high repayment demands often create financial strain.
When faced with overwhelming MCA payments, many business owners turn to solutions like debt settlement companies, enticed by promises of dramatic payment reductions and principal balance savings.
However, these promises often come with hidden consequences that can devastate your business.
At Advance Consolidation Experts (ACE), we offer a better solution: MCA consolidation loans tailored to your business’s financial reality—without requiring you to default on your MCA agreements.
Here’s why our approach works and how it differs from debt settlement companies.
The Problem With Debt Settlement Companies
Debt settlement companies often promote themselves as saviors, claiming they can negotiate reduced payments or settle your MCA debt for a fraction of the principal.
While this sounds appealing, their strategies come with significant risks and results often fall well short of the promises:
1. Default Is Mandatory
Debt settlement companies nearly always require businesses to stop paying their MCA creditors, an act that triggers a default under every MCA agreement.
This tactic is inherently dangerous, as default opens the door to severe creditor actions without the need for court intervention.
2. False Promises
These companies might promise to reduce your payments by, say, 50%. But what if your business can only afford to pay 10% of your current obligations? You’re left paying for a service that fails to address your real financial capacity.
3. Irreparable Harm from Default
When you default on MCA agreements, creditors are empowered to enforce repayment through mechanisms such as:
– Filing a UCC-1 lien: This gives creditors a claim over your business assets.
– Restraining accounts receivable: Creditors can redirect customer payments directly to themselves, cutting off your cash flow.
– Seizing credit card processing revenue: This leaves businesses unable to operate normally, causing embarrassment and operational disruption.
Worse, even with these enforcement powers, most MCA creditors still pursue lawsuits, adding legal headaches and financial burdens.
4. More Onerous Settlements
Defaulting doesn’t lead to favorable settlements. Instead, creditors often demand payment terms even more burdensome than the original MCA agreements, compounding the problem. What position will you be in to fight these demands with all of your business accounts receivable restrained?
How ACE Is Different
At Advance Consolidation Experts, we believe in a proactive, sustainable approach. Here’s how we set ourselves apart:
1. No Default Required
Unlike debt settlement companies, our MCA consolidation loans don’t require you to stop paying your MCA creditors. This preserves your business’s standing and avoids the costly repercussions of default. If you have already defaulted, however, you can still obtain a loan from ACE
2. Tailored Repayment Plans
Every loan we provide is carefully underwritten to determine what your business can afford to repay monthly. This ensures a manageable payment plan that supports your business’s growth rather than stifling it.
3. Significant Payment Reductions
Our loans can reduce your MCA payments by up to 90%. This isn’t based on abstract promises or arbitrary percentages but on what makes sense for your unique financial situation.
4. Protecting Your Business’s Reputation
By avoiding default, you maintain positive relationships with customers and vendors and safeguard your business’s reputation. There’s no embarrassing seizure of receivables, no disruption to your operations, and no unnecessary legal battles.
Think Before You Pay a Debt Settlement Company
If you’re considering hiring a debt settlement company, ask yourself these critical questions:
– Can they guarantee payment reductions that align with what you can actually afford?
– Are they transparent about the risks of default, including UCC filings, receivable restraints, and legal action?
– What happens if their negotiations fail? Will you be left in a worse position than before?
The reality is, paying for a promise to reduce payments by 50% is meaningless if your business can only afford 10%.
Worse yet, defaulting on your MCA agreements can turn a difficult financial situation into a catastrophic one.
Secure Your Business’s Future With ACE
At Advance Consolidation Experts, our goal is simple: to help your business regain financial stability without the risks and downsides of defaulting on MCA agreements.
We work with you to create a loan solution that makes sense for your business—one that reduces payments significantly while supporting your ability to thrive.
Don’t risk your business’s future on empty promises. Contact us today to learn how we can help you consolidate your MCA debt and take back control of your finances.
Visit our calculator today to view the possible savings and Book a call to get your business into a better financial solution.
